Jefferies Anticipates Harvest Year for GWMOTOR's Overseas Expansion, Trims Target Price to HK$22 While Reiterating Buy

Stock News
04/10

Jefferies has released a research report indicating that 2026 will mark the beginning of the harvest period for GWMOTOR's (02333) earlier platform-driven strategy and overseas expansion, which is expected to drive volume and profit growth. However, the firm has lowered its target price for the H-shares from HK$25.1 to HK$22, equivalent to a projected 2026 price-to-earnings ratio of 12 times. The target price for the A-shares (601633.SH) was also reduced from 34.6 yuan to 30.4 yuan. The Buy rating was reaffirmed. The report notes that GWMOTOR's first-quarter sales increased by 4.8% year-on-year to 269,000 units, while new energy vehicle sales fell by 15.9% to 53,000 units. Export volume, however, surged by 43.1% to 130,000 units, raising the proportion of overseas sales to 48.3%. Jefferies expects that as new energy models are launched more rapidly overseas, GWMOTOR will benefit from rising oil prices. Continued growth in exports of the Tank series should further enhance profit visibility.

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