CMSC International has issued a research report upgrading GWMOTOR's (02333) target price following the company's robust second-quarter performance and sequential gross margin improvement. The firm raised its H-share target price from HK$19 to HK$26 while maintaining an "Overweight" rating.

GWMOTOR reported strong Q2 results with net profit reaching RMB 4.586 billion, representing a 19.1% year-over-year increase and a substantial 161.9% quarter-over-quarter growth. These figures align with the previously disclosed earnings guidance range.

The brokerage has adjusted its profit forecasts for GWMOTOR, reducing 2025 estimates by 5% while raising 2026 and 2027 projections by 9% and 10% respectively. The downward revision for 2025 reflects increased expenses from intensive new vehicle launches, while the upward adjustments for 2026-27 anticipate a new strong product cycle beginning in the second half.

GWMOTOR anticipates second-half sales growth of 40% to 50% year-over-year, driven by an aggressive new model rollout schedule. The fourth quarter will see deliveries of the Shanhai PHEV, a mid-to-large luxury flagship SUV, and the Tank 400/700 models. Additionally, Ora and Haval brands, built on the new EEA platform, plan to launch 1-2 new models in Q4, with continued launches scheduled for next year.

The research firm highlights that the new platform offers compatibility with multiple powertrain configurations and incorporates advanced intelligent technologies, significantly enhancing product competitiveness in the market.