[ET Net News Agency, 13 June 2018] HSBC Global Research raised its target price for
Great Wall Motor (GWM)(02333) to HK$9.8 from HK$8.8, and retained its "buy" rating.
The research house said GWM currently has no JVs with foreign OEMs and so is not exposed
to the same kind of downside risk from the easing of foreign restrictions.
In terms of electrification, GWM has engaged in the development of electric vehicle
(EV), hybrid electric vehicle (HEV) and plug-in hybrid electric vehicle (PHEV), involving
three different types of technology, as well as the planning of fuel cell vehicle (FCV),
HSBC noted.
GWM has signed a letter of intent (LOI) with BMW in order to produce electrified Minis
in China. In HSBC's recent non-deal roadshow with BMW in Hong Kong, the company stated
that the LOI was still valid; however, it could consider other forms of producing the Mini
in China apart from a JV structure, including outsourcing the production to a third party.
If this were the case, it could change the profit structure of any future potential JVs
that GWM may be considering, HSBC said. (KL)