[ET Net News Agency, 24 February 2020] Huatai Research lifted its target price for
Great Wall Motor (GWM)(02333) to HK$7.5 from HK$4.5 due to GWM's improved net profit
growth outlook and upgraded its rating to "buy" from "sell".
The research house believes GWM's competitiveness has improved in a tough market with an
uptrend in earnings growth likely to start after a three-year downward trend in 2017-2019.
GWM registered two consecutive quarters of better-than-expected results in 3Q and 4Q 2019
and Huatai believes this demonstrates its ability to outperform its peers in auto sales
and improve profit margins through product upgrades.
It raised its net profit estimates by 17% to RMB5.6bn for 2020 and by 2% to RMB6.3bn for
2021. (KL)