An investment research firm has adjusted its valuation for Great Wall Motor Company Limited (GWMOTOR), reducing the price target from HK$22 to HK$14 while reaffirming a "Buy" recommendation.

The report indicates that cost savings and product mix improvements driven by the vehicle platform have largely counterbalanced the impact of battery and chip inflation, helping to keep gross margins stable compared to the same period last year. The firm has consequently revised down its net profit forecasts for the 2026 and 2027 fiscal years to 9.4 billion yuan and 13.1 billion yuan, respectively.

The analysis notes that the profit warning issued for the first half of 2026 appeared more severe than the actual results. Reported net profit was between 2.35 billion and 2.6 billion yuan, representing a year-on-year decline of 59% to 63%. This was primarily attributed to a delayed confirmation of a 2.27 billion yuan write-off subsidy in Russia and adverse foreign exchange impacts amounting to approximately 1.76 billion yuan compared to the prior year.

Excluding these one-off factors, the firm estimates the core net profit would have been approximately 6.4 to 6.6 billion yuan, which is broadly in line with the net profit of 6.34 billion yuan recorded in the first half of 2025.