"Large Banks" CMB International: Increased Investment in Great Wall Motor Affects Profit, Temporarily Maintains "Buy" Rating

The research report from China Merchants Jinling International indicates that Great Wall Motor (02333.HK) saw its net profit decline by 21.7% year-on-year to RMB 9.912 billion last year, mainly due to simultaneous growth in sales and revenue. The company accelerated the establishment of new channel models to connect directly with users and increased investment in the promotion of new models, new technologies, and brand enhancement.

Last year's revenue increased by 10.2% year-on-year to RMB 222.79 billion, with revenue per vehicle rising by approximately RMB 4,500 year-on-year to RMB 168,300. Sales of vehicles priced above RMB 200,000 increased by over 90,000 units year-on-year, reflecting the ongoing push for premiumization and structural upgrades.

Looking ahead to 2026, the company aims to challenge overseas sales of 600,000 units and has accelerated channel signings in multiple regions in the fourth quarter of last year, laying the foundation for incremental growth in 2026.

The firm believes that the company will continue to benefit from the direction of "premiumization + new energy + going overseas" in the medium term, but the increased investment in the fourth quarter of last year has already shown a phase of profit compression. It temporarily maintains a "Buy" rating, with a target price of HKD 22.5 for H shares