Shares of GWMOTOR (02333) experienced a significant increase, rising more than 5% during the morning session. At the time of writing, the stock was up 4.73%, trading at HK$9.07 with a turnover of HK$69.7119 million.

The company recently announced that its new "Family Square Box" model, the H10, secured 22,615 orders within just 12 hours. This new vehicle is offered in two seating configurations—five-seat and six-seat layouts—across four variants, with a pre-sale price range of 219,800 to 239,800 yuan. Additionally, GWMOTOR's Tank brand has officially launched the new Tank 300 compact SUV, which comes in five variants featuring gasoline, diesel, and plug-in hybrid powertrains, with prices ranging from 199,800 to 259,800 yuan.

Analyst Commentary and Financial Forecasts

Analysts at Jefferies recently published a research report, maintaining a 'Buy' rating on GWMOTOR while adjusting the target price down from HK$22 to HK$14. The report notes that cost savings and product mix optimization driven by the company's new vehicle platform, "Guiyuan," have largely offset the impact of battery and chip inflation, helping gross margins remain broadly stable compared to the same period last year. The firm has revised its net profit forecasts for fiscal years 2026 and 2027 down to 9.4 billion yuan and 13.1 billion yuan, respectively.

Earnings Performance and Underlying Profit

The report indicates that the profit warning issued for the first half of 2026 was more severe than the actual results. Reported net profit is estimated to be between 2.35 billion and 2.6 billion yuan, representing a year-on-year decline of 59% to 63%. This drop is primarily attributed to a delayed recognition of a 2.27 billion yuan scrappage subsidy in Russia and unfavorable foreign exchange impacts amounting to approximately 1.76 billion yuan year-on-year. Excluding these one-off factors, Jefferies estimates the company's core net profit to be around 6.4 billion to 6.6 billion yuan, which is roughly in line with the net profit of 6.34 billion yuan reported for the first half of 2025.