Investment Rating - The report maintains a "Buy" rating for Great Wall Motors (2333 HK) with a target price raised to HKD 16.30, indicating a potential upside of 28.5% from the current price of HKD 12.68 [1][4]. Core Insights - Great Wall Motors reported strong earnings in Q2 2024, benefiting from improved export performance and product mix. The company expects a net profit of RMB 6.5 billion to RMB 7.3 billion for the first half of 2024, representing a year-on-year increase of 377.5% to 436.3% [1]. - The sales growth of the Tank brand and strong export performance are anticipated to support profit improvement for the full year. The Tank brand's sales in June increased by 104.0% year-on-year, with Q2 sales reaching 66,900 units, up 95.9% year-on-year [1]. - The report projects an increase in gross margin forecasts for 2024 and 2025 from 17.6% to 20.2% and from 17.6% to 20.6%, respectively, reflecting the rising sales of the Tank brand and higher export sales [1]. Financial Summary - Revenue for Great Wall Motors is projected to grow from RMB 137.34 billion in 2022 to RMB 183.56 billion in 2024, with a compound annual growth rate (CAGR) of 6.0% [3][6]. - Net profit is expected to rebound from RMB 7.02 billion in 2023 to RMB 11.81 billion in 2024, marking a significant year-on-year growth of 68.2% [3][6]. - The report indicates an increase in earnings per share (EPS) from RMB 0.82 in 2023 to RMB 1.38 in 2024, with a projected dividend yield of 4.4% in 2024 [3][6].
长城汽车：2季度盈利强劲，出口和产品结构持续改善，维持买入