GWMOTOR Anticipates 21.7% Drop in Net Profit Last Year, Total Revenue Projected to Rise 10.2% Year-on-Year
Financial Performance Expectations: GWMOTOR anticipates a net profit of RMB9.912 billion for 2025, reflecting a 21.7% decrease year-over-year, with a basic EPS of RMB1.16.
Revenue and Profit Projections: The company expects total operating revenue to increase by 10.2% YoY to RMB222.79 billion, while operating profit is projected to decline by 17.3% YoY to RMB11.459 billion.
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GWMOTOR Anticipates 21.7% Drop in Net Profit Last Year, Total Revenue Projected to Rise 10.2% Year-on-Year
Financial Performance Expectations: GWMOTOR anticipates a net profit of RMB9.912 billion for 2025, reflecting a 21.7% decrease year-over-year, with a basic EPS of RMB1.16.
Revenue and Profit Projections: The company expects total operating revenue to increase by 10.2% YoY to RMB222.79 billion, while operating profit is projected to decline by 17.3% YoY to RMB11.459 billion.
HSBC Research Remains Positive on BYD COMPANY and GWMOTOR's Ability to Withstand Significant Raw Material Price Increases
Cost Pressure on Chinese Automakers: HSBC Global Research predicts that rising raw material prices, particularly for metals and memory, will significantly increase production costs for Chinese automakers, especially electric vehicle manufacturers.
Impact of Raw Material Prices: The surge in lithium prices and other materials could raise vehicle costs by RMB3,000-5,000, with additional increases from memory prices potentially adding RMB1,000-3,000.
Stock Resilience: HSBC identifies BYD COMPANY and GWMOTOR as relatively resilient to rising costs, while FUYAO GLASS is expected to be less affected by increased material prices.
Target Prices for Stocks: The target prices set for BYD COMPANY, GWMOTOR, and FUYAO GLASS are HKD139, HKD21.6, and HKD91.2, respectively, with all three stocks rated as Buy.
