EBSCN·2024-10-28 11:45Investment Rating - The report maintains an "Accumulate" rating for both A and H shares of Great Wall Motors [5]. Core Views - The third-quarter performance met expectations, with a year-to-date revenue increase of 19.0% to CNY 142.25 billion and a net profit increase of 108.8% to CNY 10.43 billion [1]. - The company is actively advancing its high-end and internationalization strategies, with a focus on smart and differentiated technologies to enhance its product offerings [2][3]. - The Latin American market is expected to be the largest contributor to overseas sales growth, with specific targets set for 2024 and 2025 [3]. Summary by Sections Financial Performance - For the first three quarters of 2024, revenue reached CNY 142.25 billion, up 19.0% year-on-year, while net profit increased by 108.8% to CNY 10.43 billion [1]. - The gross margin improved by 1.9 percentage points to 20.8% [1]. - In Q3 2024, revenue was CNY 50.83 billion, reflecting a year-on-year increase of 2.6% and a quarter-on-quarter increase of 4.6% [1]. Sales and Market Strategy - Q3 2024 saw a total vehicle sales decline of 14.7% year-on-year, but a 3.4% increase quarter-on-quarter, with new energy vehicle sales up 2.6% year-on-year [2]. - The company is focusing on high-end brands and has completed the establishment of direct sales channels for its premium offerings [2]. - The introduction of new models and technologies, such as the Hi4-Z and Ultra driving system, is aimed at enhancing market competitiveness [2]. International Expansion - The company has set ambitious overseas sales targets of 450,000 units for 2024 and 580,000 units for 2025, with significant growth expected from the Latin American market [3]. - Local manufacturing initiatives, including a KD factory in Ecuador and a full-process factory in Brazil set to start production in May 2025, are part of the strategy to enhance competitiveness [3]. Future Projections - The report maintains profit forecasts for 2024E-2026E at CNY 13.15 billion, CNY 14.74 billion, and CNY 16.76 billion respectively [3].