Ge Long Hui A P P·2025-11-04 03:29Core 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]