titanbingo| CITIC Securities: Raise its "Buy" rating on Great Wall Motor to HK$17

CITIC Securities released a research report sayingtitanbingo, Give Great Wall Motors (02333) a "Buy" ratingtitanbingo, considering that the monthly export sales exceeded expectations in March, further proving the certainty of export growth and that export profits were higher than domestic, the company raised its forecast for earnings per share from 2024 to 2026 to 1.titanbingo.19/1titanbingo.42/1.67 yuan, the original forecast was 1.11/1.29/1.5 yuan, and the target price was raised from HK$15 to HK$17.

According to the report, the company's overseas market has gradually grown. Since 2021, the scale of exports has surged. The proportion of overseas sales has tripled in three years, and the gross profit margin has been 10 percentage points higher than that of the domestic market for two consecutive years. In addition to the Russian market, the company has also achieved significant growth in markets such as Australia and Brazil, proving that its products and operations are successful and replicable.

The bank pointed out that Changqi's scale effect in overseas markets will contribute excess profits, reduce expense ratios and increase net profit margins. Referring to the case of Suzuki Motors, the increase in overseas business exposure has significantly boosted net profit margin and ROE. Great Wall Motors is expected to achieve greater success in overseas markets in the future, adding certainty to overseas profits.