BofA Securities has issued a research report reiterating a "Neutral" rating on Hong Kong-listed GWMOTOR (02333), stating that its robust vehicle pipeline and moderate profit growth are already reasonably reflected in its valuation. The target price is set at HK$18. GWMOTOR released preliminary results showing its 2025 preliminary revenue increased by 10% year-on-year to RMB 222.8 billion; preliminary net profit fell 22% year-on-year to RMB 9.9 billion; preliminary net profit excluding one-off items was RMB 6.2 billion, down 36% year-on-year. Based on these figures, preliminary revenue for the fourth quarter grew 15% year-on-year, or 13% quarter-on-quarter, to RMB 69.2 billion (with sales volume up 5% year-on-year and 13% quarter-on-quarter). However, preliminary net profit for the fourth quarter dropped 44% year-on-year, or 44% quarter-on-quarter, to RMB 1.3 billion, falling short of the bank's forecast of RMB 4.4 billion for the quarter. Preliminary net profit for the fourth quarter, excluding one-off items, was RMB 683 million, representing a 50% year-on-year decline, or a 64% quarter-on-quarter decrease, primarily impacted by the recognition of year-end bonuses. Management noted that the company only received the Russian vehicle recycling tax rebate related to sales from the first to third quarters of 2025, and the rebate for the fourth quarter has not yet been received. Management attributed the year-on-year decline in 2025 net profit to incremental expenses of RMB 1.7 billion resulting from the expansion of the direct sales network, with the WEY brand's channels reaching 421 stores (including 132 new outlets). New stores typically require an approximately six-month ramp-up period and involve substantial upfront costs; higher R&D and marketing expenditures were also allocated for new models (an increase of RMB 1 billion in 2025), including the WEY Gaoshan, the facelifted Tank 500, and the Tank 400Z.