XPENG-W Drops Over 4% Following Speculation About VP Chen Yonghai's Exit

The analyst rating for GWMOTOR (02333.HK) was reiterated as "Buy" due to a combination of factors. Despite a significant drop in net profit in 3Q25, the company's revenue showed strong growth, increasing by 20.5% year-over-year. Additionally, the analyst, Daiwa, revised down its 2025 revenue and net profit forecasts due to profit pressures but raised the 2026 net profit forecast by 5% based on expectations of new model growth and overseas expansion. This positive outlook for future growth contributed to the target price increase from HKD19 to HKD22.

The analyst rating for GWMOTOR (02333.HK) is maintained at "Buy" despite a reduction in the target price from $23 to $19. The reasoning behind this rating is based on the company's strategic move to accelerate its overseas expansion to counteract the anticipated slowdown in China's domestic auto market by 2026. The establishment of an overseas production network, including plants in Brazil and Thailand, is expected to support sales and improve investment returns. This expansion aims to mitigate the impact of slower growth in the Russian market, which constitutes about 10% of its vehicle sales. The production facilities will enhance delivery times for key vehicle series, contributing to the company's growth momentum. The target price adjustment reflects a revised forward PE ratio, indicating a cautious but optimistic outlook.

The analyst rating for GWMOTOR (02333.HK) is an "Outperform" due to several factors. Despite a 20.5% year-over-year increase in revenue for 3Q25 and a slight decline in gross profit margin, the company is expected to launch new models in both the mass and premium markets in 2026. This strategic move is anticipated to enhance exports, particularly to Europe, and achieve higher average selling prices (ASP). The broker acknowledges the company's technological advantages and ongoing premium capabilities as foundational for its future development. Although the earnings adjustment led to a reduction in the revenue and net profit forecasts for 2025, the overall outlook remains positive, justifying the "Outperform" rating and a target price of HKD21.

CMB International maintained a Buy rating for GWMOTOR due to several key factors: 1. Efficient Cost Controls: Despite a miss in gross profit margin (GPM) for 3Q25, the company's effective management of selling, general, and administrative expenses (SG&A) and research and development (R&D) costs positions it well for future performance. 2. Record High Sales Volume: The company is expected to achieve a record high sales volume in FY2025, with a forecasted 16% year-over-year increase in sales volume to 1.57 million units in FY2026, marking the highest growth rate since FY2017. 3. Strong Product Line: The "Tank" series is anticipated to continue driving resilient earnings, while the "WEY" and "ORA" brands are expected to serve as growth engines for sales in FY2026. These factors contribute to the positive outlook despite a reduction in the target price from HKD22 to HKD20, based on a 12x FY2026E price-to-earnings ratio.