Xin Lang Cai Jing·2025-11-04 09:07Core 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]