智通财经网·2025-11-04 07:13Core 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]