The Zhitong Finance App learned that CMB International released a research report stating that it gave Great Wall Motor (02333) a “buy” rating, and the target price was lowered from HK$19 to HK$14.

Great Wall Motor's second-quarter results were in line with the profit warning, and the average price was better than expected. The bank expects the company's profit to take a turn in the second half of the year. The main driving factors include Russian scrap tax rebates, increased production capacity for new models, and stabilizing sales expenses after the completion of the direct sales network expansion.

The bank took into account the increase in Great Wall Motor's export contribution, which was offset by year-end bonus accruals. The gross margin for the second half of the year is expected to narrow by 0.5 percentage points to 17.9% on a semi-annual basis. The bank lowered Changqi's net profit forecast slightly by 1.3% to RMB 9.2 billion. Next year's sales forecast was lowered from 1.6 million vehicles to 1.53 million vehicles, and the net profit forecast was lowered by 7.5% to RMB 10.9 billion.

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