Investment Rating - The investment rating for Great Wall Motors is "Outperform the Market" [6][4][17] Core Views - The report highlights a 19% year-on-year increase in net profit for the second quarter, driven by improved sales and a favorable product mix [1][8] - The company is expected to benefit from a new product cycle and ongoing advancements in its new energy strategy, which are anticipated to drive sales growth [3][4][17] Financial Performance Summary - For the first half of 2025, Great Wall Motors reported revenue of 92.34 billion yuan, a year-on-year increase of 1.0%, with a net profit of 6.34 billion yuan, down 10.2% year-on-year [1][8] - In Q2 2025, revenue reached 52.32 billion yuan, up 7.7% year-on-year and 30.7% quarter-on-quarter, with a net profit of 4.59 billion yuan, reflecting a 19.5% year-on-year increase and a 161.9% quarter-on-quarter increase [1][8] - The company sold 312,000 vehicles in Q2, marking a 10.1% year-on-year increase and a 21.9% quarter-on-quarter increase [1][8] Cost Structure and Profitability - In Q2 2025, the sales, management, and R&D expense ratios were 5.2%, 1.8%, and 4.5%, respectively, with the sales expense ratio increasing due to higher marketing costs for new products [2][15] - The average revenue per vehicle was 157,000 yuan, a decrease of 1,400 yuan year-on-year, while the net profit per vehicle was 8,800 yuan, down 500 yuan year-on-year [2][15] Product and Market Strategy - Great Wall Motors is advancing its new energy strategy with significant investments in hybrid, pure electric, and hydrogen technologies, alongside the launch of new models [3][4] - The company is expanding its overseas market presence, introducing new models in regions such as Latin America, ASEAN, and the Middle East [3][4] Earnings Forecast - The forecasted net profits for Great Wall Motors from 2025 to 2027 are 13.84 billion yuan, 16.20 billion yuan, and 18.81 billion yuan, respectively, with EPS projected at 1.62 yuan, 1.89 yuan, and 2.20 yuan [4][19]

Core Viewpoint - Great Wall is attempting to inject smart technology into its rugged off-road vehicles to seek new growth opportunities amid sales pressure [2][5] Group 1: Product Launch and Features - The newly launched Tank 500 Intelligent Edition is Great Wall's first rugged off-road model equipped with an intelligent driving system [2] - The Tank 500 Intelligent Edition comes in two versions, Hi4-T and Hi4-Z, with pre-sale prices of 360,000 yuan and 388,800 yuan, respectively, which is an increase of 25,000 yuan compared to non-intelligent driving versions [2] - The vehicle features the third-generation intelligent driving system Coffee Pilot Ultra, capable of "parking to parking" intelligent driving, and the third-generation smart cabin system Coffee OS3 [2] Group 2: Performance Upgrades - The electric motor power has been increased from 120 kW to 130 kW, with a significant torque increase to a declared 495 Nm, reaching up to 500 Nm in practice [2] - The upgrades aim to cater to urban users who may use the Tank 500 as an electric vehicle [2] Group 3: Market Strategy and Challenges - There is internal debate within Great Wall regarding the necessity of smart driving features in rugged off-road vehicles, but sales pressure has driven the decision to integrate these technologies [2][4] - The development of intelligent driving for off-road vehicles is more complex than for regular models, requiring a longer calibration period and significant cost investments [4] - Great Wall aims to expand the target audience from professional off-road enthusiasts to family consumers and light off-road lovers [4] Group 4: Sales Performance and Future Plans - Tank brand sales reached 135,000 units in the first seven months of the year, a decrease of 8.19% year-on-year, while Great Wall's total sales were 674,000 units, growing only 3.57% year-on-year, significantly lagging behind the industry growth rate of 12% [5] - Great Wall is also planning to develop non-body-on-frame MPVs to stimulate greater demand, indicating a strategic shift to find new growth avenues [5]

Investment Rating - The report maintains a "Buy-A" rating for the company [6] Core Views - The company is expected to achieve a revenue of 923 billion yuan in the first half of 2025, representing a year-on-year increase of 1.03%, while the net profit attributable to shareholders is projected to be 63.4 billion yuan, down 10.2% year-on-year [1] - The second quarter of 2025 saw a revenue of 523.5 billion yuan, an increase of 7.8% year-on-year and 30.8% quarter-on-quarter, driven by new vehicle launches and improved overseas sales [2] - The company is entering a new growth phase with the launch of new models and a focus on direct-to-consumer channels, which is expected to enhance brand value and sales [4] Summary by Sections Financial Performance - In Q2 2025, the company achieved a net profit of 45.9 billion yuan, up 19.1% year-on-year and 161.9% quarter-on-quarter, while the non-recurring net profit was 21.1 billion yuan, down 30.1% year-on-year [3] - The average selling price (ASP) per vehicle in Q2 2025 reached 167,000 yuan, a decrease of 2.1% year-on-year but an increase of 7.3% quarter-on-quarter [2] Market Outlook - The mainstream market for new vehicles is expected to see an upward sales trend, supported by the successful launch of new models and a comprehensive marketing strategy [4] - The company has significant potential in the off-road vehicle market, with the Hi4Z technology expected to enhance product offerings and profitability [4] - The company has a diverse product range and strong technological capabilities, indicating substantial export potential as new models and powertrains are introduced [4] Valuation and Projections - The report forecasts net profits for 2025, 2026, and 2027 to be 140.3 billion yuan, 174.0 billion yuan, and 209.6 billion yuan respectively, with corresponding price-to-earnings ratios of 13.4, 10.8, and 9.0 times [4][10] - The six-month target price is set at 32.79 yuan per share, reflecting a 20 times price-to-earnings ratio for 2025 [4]

Group 1 - The core message of the event emphasizes that "changing for users" is a fundamental value for the company, not just a slogan [1] - The company showcased new models including the Blue Mountain and the new high mountain series, highlighting their commitment to user feedback and action [1][3] - The new high mountain series includes three models designed to meet diverse family needs, with over 8,000 orders placed within 26 hours of pre-sale launch [3] Group 2 - The high mountain welfare version features remote-controlled reclining seats and high-quality materials, catering to passengers with mobility challenges [3] - Safety is a top priority, with the new high mountain equipped with the Coffee Pilot Ultra driving assistance system and a high-strength cage structure for active protection [3] - The company adopts a "long-termism" approach in the face of rapid electrification and intelligent transformation in the automotive industry, focusing on refining technology and user experience [5] Group 3 - The Blue Mountain model has achieved a cumulative retail volume of 36,430 vehicles and a wholesale volume of 38,732 vehicles as of April 21, ranking among the top three in its market segment [5] - The company has refreshed the Blue Mountain with new color options based on user feedback, addressing aesthetic fatigue in luxury electric SUVs [6] - The Mocha Hi4 model will also debut with new color options and upgrades in the third quarter [6]