Investment Rating - The report maintains a positive outlook on the automotive industry, particularly on the segments of robot components, heavy truck exports, and intelligent autonomous vehicles [5]. Core Insights - The automotive market shows strong demand with a significant increase in wholesale and retail sales, particularly in the new energy vehicle (NEV) sector, which reached a penetration rate of 52.5% in Q3 2025 [5][9]. - The price war in the passenger car segment is easing, leading to improved gross margins for many automakers, including BYD, Changan, and others [5][21]. - The heavy truck market is experiencing a dual boost from domestic sales and exports, with heavy truck sales reaching 21.5 million units in Q3, a year-on-year increase of 65% [5][30]. Summary by Sections Passenger Vehicles - In Q3 2025, wholesale sales of passenger vehicles reached 7.686 million units, up 14.7% year-on-year and 8.1% quarter-on-quarter; retail sales were 6.11 million units, up 6.5% year-on-year and 5.5% quarter-on-quarter [5][9]. - The NEV wholesale volume reached 4.04 million units, a year-on-year increase of 24.5%, with a penetration rate of 52.5%, marking a new high [5][9]. Auto Parts - The auto parts sector is seeing increased profitability differentiation, with overall revenue growth lagging behind the industry due to intensified competition and supply chain pressures [5][21]. - Companies like Bojun Technology and Jifeng Co. have reported better-than-expected performance in Q3 2025 [5]. Heavy Trucks - Heavy truck sales in Q3 reached 21.5 million units, a year-on-year increase of 65%, while exports were 81,000 units, down 1% year-on-year but up 26% quarter-on-quarter [5][30]. - The domestic market is expected to continue growing due to policy support, despite a decline in exports to Russia [5]. Investment Recommendations - The report recommends focusing on robot components, heavy truck export leaders, and intelligent autonomous vehicles, highlighting companies such as Top Group and BYD for investment opportunities [5].

Group 1 - The 42nd Antarctic Expedition team from China has set sail, with the "Xuelong" and "Xuelong 2" polar research vessels departing [1] - Great Wall Motors' Tank 300 diesel version is directly deployed as a mass-produced model for Antarctic support, without the need for special modifications to operate in extreme cold [3] - Great Wall Motors has established a comprehensive R&D capability that meets global high standards, focusing on multiple dimensions such as active and passive safety, thermal management, NVH, and durability [3] Group 2 - The Tank 300 diesel version underwent long-duration simulation tests in a wind tunnel to ensure reliable operation in extreme Antarctic conditions, successfully performing key operations like one-button start, defrosting, and heating [3]

Core Points - The 42nd Antarctic Expedition of China has commenced with over 500 participants from more than 80 domestic units, expected to return by May 2026 [1] - The Tank 300 diesel version from Great Wall Motors is onboard the "Xuelong 2" ship, tasked with critical operations such as material transportation and station commuting at the Great Wall Station [1] - The expedition focuses on national needs and global scientific frontiers, including monitoring key Antarctic sea areas and applying domestic technology [1] Group 1 - The Tank 300 diesel version has undergone rigorous testing to ensure reliable operation in extreme Antarctic conditions, including simulations of strong winds and blizzards [1] - Great Wall Motors will send engineering personnel to the Antarctic Great Wall Station to provide vehicle maintenance and technical support as formal expedition team members [2] - This "equipment + talent" model aims to enhance mobility and response efficiency at the research site [2] Group 2 - Great Wall Motors has established a long-term partnership with the Chinese Arctic and Antarctic Administration to collaborate on vehicle research and testing for polar scientific expeditions [2] - The collaboration will focus on vehicle reliability, durability, and adaptability in extreme cold, wind, and snow conditions [2] - This partnership aims to deepen the integration of Chinese automotive enterprises with the national research system and accumulate experience for a more mature polar support mechanism [2]

Core Viewpoint - DBS has released a report indicating that Great Wall Motors (02333) is accelerating its international expansion to enhance growth momentum, anticipating a slowdown in the domestic Chinese automotive market by 2026 [1] Group 1: Company Strategy - Great Wall Motors is planning an overseas production network to support sales and improve investment returns [1] - The company’s Brazilian factory, with a capacity of 50,000 units, aims to enter the Latin American markets of Mexico, Argentina, and Chile [1] - The Thai factory, with a capacity of 80,000 units, is intended to reach the ASEAN/Asian markets [1] Group 2: Financial Performance - DBS has lowered the target price for Great Wall Motors from HKD 23 to HKD 19, which corresponds to a projected price-to-earnings ratio of 10 times for the next year [1] - In the third quarter, Great Wall Motors experienced a pressure on gross margin, which decreased by 1.3 percentage points year-on-year and by 1.6 percentage points quarter-on-quarter to 17.2% [1] - The decline in gross margin is primarily attributed to increased advertising and promotional expenses related to new models, partly due to market competition, as well as the expansion of the direct sales network [1]

Core Viewpoint - The article discusses the significant growth in export sales for the company, particularly in October, driven by seasonal demand and favorable market conditions, with a focus on various regions and product lines [1][4][12]. Export Data Analysis - In October, overall export sales increased by approximately 5%, with notable growth in Latin America, Australia, the Middle East, Central Asia, Europe, and Africa [1]. - Exports to Russia and Brazil showed remarkable growth, achieving a month-on-month increase of nearly 10% to 15%, aided by local credit and monetary policies [2]. Brand Structure Insights - The brand structure remained stable, with the Haval brand accounting for over 70% of total exports. The Tank and pickup models maintained high export levels, with Haval's share at about 70%, pickups at 13%, and Tanks at 11% [3]. Regional Sales Performance - Sales figures by region include approximately 10,000 units in Latin America, around 5,500 in Australia, 4,000 to 4,400 in the Middle East, 3,000 in Central Asia, and over 4,000 in Africa. Russia and surrounding countries exceeded 25,000 units, while Southeast Asia accounted for about 3,000 units [4]. Product Line Outlook - The Ora product line is set for a significant product cycle, with the launch of 1 to 2 models this year and 5 new models expected next year, targeting urban users and aiming for a price range of up to 200,000 RMB [5]. Business Strategy - The company aims to enhance the reputation and visibility of the 300 and 500 series models, with the Tank series experiencing rapid growth in overseas markets, particularly with the introduction of diesel versions [6]. Diesel Model Strategy - The introduction of diesel versions of the Tank series in markets with high diesel acceptance is based on technical advantages and market opportunities, leading to increased sales and positive reception [7]. Future Product Plans - The company plans to prioritize the launch of Tank 400 and Tank 700 models in regions with strong sales and reputation, while also considering the introduction of PHEV models based on regional policies and user needs [8]. Upcoming Product Launches - The Tank brand will officially launch the Tank 400 on November 6, with the Ora 5 also set to debut. Increased product launches are expected during the sales peak in November and December [9]. High Mountain Model Enhancements - The High Mountain model has seen significant improvements in interior and functionality, becoming a practical and well-received new energy MPV suitable for family and commercial use [10]. High Mountain Model Future Plans - Continuous iterations and software upgrades are planned for the High Mountain model to enhance its smart capabilities, maintaining its competitive edge in the hybrid MPV market [11]. Industry Sales Outlook - The overall automotive market in China is expected to see significant growth this year, but a potential decline in sales is anticipated in the first quarter of next year due to the reduction of subsidies and seasonal factors [12]. Tank Export Projections - The Tank brand aims for a 20% year-on-year growth in exports, targeting a scale of 600,000 units, with current exports nearing 45,000 units and a monthly target of 5,000 units [13]. Global Promotion of Diesel Models - The Tank 300 diesel version is being promoted globally, with plans to increase participation in off-road events to enhance brand visibility and performance [14].

Investment Rating - The report maintains a "Recommended" rating for the company, with a closing price of 22.69 CNY per share as of November 3, 2025 [6]. Core Views - The company has achieved record sales in October, with wholesale sales reaching 143,000 units, a year-on-year increase of 22.5% and a month-on-month increase of 7.1%. Cumulative sales from January to October reached 1.066 million units, up 9.9% year-on-year [1]. - The introduction of new models, particularly the Tank 400, is expected to enhance brand positioning and drive sales growth. The new model features advanced technology and is aimed at improving the driving experience [2]. - The Haval brand continues to perform well, with sales of 88,000 units in October, reflecting a year-on-year increase of 21.4% and a month-on-month increase of 7.7%. The launch of new models is expected to further strengthen market competitiveness [3]. - The company's overseas sales are also on the rise, with October sales reaching 57,000 units, a year-on-year increase of 28.7% and a month-on-month increase of 13.7%. The company is making progress in localizing production in Australia, which is anticipated to boost overseas sales [3]. Summary by Sections Sales Performance - In October, the company reported a wholesale sales figure of 143,000 units, with significant contributions from various brands: Haval (88,000 units), Wey (13,000 units), Pickup (14,000 units), Ora (6,000 units), and Tank (22,000 units) [1]. - Cumulative sales for the first ten months of the year reached 1.066 million units, with Haval and Wey brands showing notable year-on-year growth [1]. New Product Launches - The Tank 400 was launched for pre-sale on October 21, 2025, with advanced features aimed at enhancing the driving experience and promoting brand high-end positioning [2]. - Haval's new models, including the 2026 version of the Big Dog and the Menglong, are expected to drive sales through competitive pricing and upgraded features [3]. Financial Projections - The company forecasts revenues of 226.78 billion CNY in 2025, 289.8 billion CNY in 2026, and 318.78 billion CNY in 2027, with corresponding net profits of 12.67 billion CNY, 17.52 billion CNY, and 19.4 billion CNY respectively [4][5]. - The projected PE ratios for the upcoming years are 15 for 2025, 11 for 2026, and 10 for 2027, indicating a favorable valuation outlook [4][5].

Core Viewpoint - DBS has lowered the target price for Great Wall Motors (02333) from HKD 23 to HKD 19, reflecting a forecasted price-to-earnings ratio of 10 times for next year, down from 12 times for this year, while maintaining a "Buy" rating [1] Group 1: Company Strategy - Great Wall Motors is accelerating its overseas expansion to enhance growth momentum, anticipating a slowdown in the domestic Chinese automotive market by 2026 [1] - The company has planned an overseas production network to support sales and improve investment returns, including a factory in Brazil with a capacity of 50,000 units targeting Latin America and a factory in Thailand with a capacity of 80,000 units for the ASEAN/Asian market [1] - These facilities will produce models from the Haval series (H6, H9, etc.), ORA, and more, aiming to shorten delivery times and mitigate the impact of slowing growth in the Russian market, which accounts for approximately 10% of its automotive sales [1] Group 2: Financial Performance - Great Wall Motors experienced pressure on gross margin in the third quarter, with a year-on-year decrease of 1.3 percentage points and a quarter-on-quarter decrease of 1.6 percentage points to 17.2%, primarily due to increased advertising and promotional expenses for new models and the expansion of direct sales channels [1] - DBS expects that the expanded network will lead to higher sales efficiency, allowing the product gross margin to stabilize at around 19% by 2026 [1] - The bank forecasts a compound annual growth rate of 10% for Great Wall Motors' earnings from 2024 to 2026, supported by a revenue growth rate of 13.7% [1]

Group 1 - The core viewpoint of the article is that Great Wall Motors is accelerating its international expansion to enhance growth momentum, anticipating a slowdown in the domestic Chinese automotive market by 2026 [1] - DBS has lowered the target price for Great Wall Motors from HKD 23 to HKD 19, which corresponds to a projected price-to-earnings ratio of 10 times for next year, down from a previous estimate of 12 times for this year, while maintaining a "Buy" rating [1] - The company has planned an overseas production network to support sales and improve investment returns, including a factory in Brazil with a capacity of 50,000 units targeting Latin American markets such as Mexico, Argentina, and Chile, and a factory in Thailand with a capacity of 80,000 units aimed at the ASEAN/Asian markets [1] Group 2 - Great Wall Motors is expected to face pressure on gross margins in the third quarter, with a year-on-year decrease of 1.3 percentage points and a quarter-on-quarter decrease of 1.6 percentage points to 17.2%, primarily due to increased advertising and promotional expenses for new models and the expansion of direct sales channels [1] - DBS anticipates that the expanded network will lead to higher sales efficiency, allowing the product gross margin level to stabilize at around 19% by 2026 [1] - The bank projects a compound annual growth rate of 10% for Great Wall Motors' earnings from 2024 to 2026, supported by a revenue growth rate of 13.7% [1]

Core Insights - The 42nd Chinese Antarctic Expedition has commenced, with the "Xuelong 2" vessel carrying the Great Wall Motors Tank 300 diesel model to support key tasks in Antarctica, marking a significant contribution from a domestic brand to national polar research efforts [1][3] Group 1: National Strategy and Industry Participation - This marks the first deep involvement of a domestic automotive brand in national polar research, showcasing the automotive industry's response to national scientific calls and its commitment to national missions [3] - The Antarctic scientific expedition is a strategic national project aimed at addressing global climate change, polar ecological protection, and frontier scientific exploration [3] Group 2: Vehicle Capabilities and Testing - The Tank 300 diesel model is a production vehicle that can operate in extreme cold without special modifications, reflecting Great Wall Motors' confidence in its technology [5] - Great Wall Motors has established a comprehensive global testing and validation system, ensuring the vehicle's performance in various conditions, including extreme cold and severe weather [5] Group 3: Operational Support and Collaboration - Great Wall Motors will send engineering personnel to Antarctica to provide vehicle maintenance and technical support as part of a full-chain support model, enhancing operational efficiency [7] - A long-term partnership has been established between Great Wall Motors and the Chinese Arctic and Antarctic Administration to jointly develop and test vehicles for polar research, aiming to integrate automotive capabilities with national scientific efforts [7]

Core Viewpoint - Long-term growth for Great Wall Motors is expected to be driven by international expansion as the domestic automotive market in China is anticipated to slow down by 2026 [1] Group 1: International Expansion - Great Wall Motors is accelerating its overseas expansion to enhance growth momentum, with plans for an overseas production network to support sales and improve investment returns [1] - The company is establishing a factory in Brazil with a capacity of 50,000 vehicles, targeting markets in Mexico, Argentina, and Chile, while also leveraging its factory in Thailand with a capacity of 80,000 vehicles to reach ASEAN/Asian markets [1] Group 2: Financial Performance - In Q3, Great Wall Motors experienced pressure on gross margin, which decreased by 1.3 percentage points year-on-year and 1.6 percentage points quarter-on-quarter to 17.2% [1] - The decline in gross margin is attributed to increased advertising and promotional expenses related to new models, partly due to market competition, as well as the expansion of direct sales channels [1] - Despite the current pressures, it is expected that the expanded network will lead to higher sales efficiency, allowing the gross margin to stabilize around 19% by 2026 [1] Group 3: Analyst Rating - DBS has revised its target price for Great Wall Motors from HKD 23 to HKD 19 while maintaining a "Buy" rating [1]