Profit alert: 1H22 net earnings to grow 50-67%; ahead of expectation
- 1H22 net earnings expected to increase 50-67% y-o-y, helped by better revenue mix
- Total vehicle sales fell c.16% yoy but the Tang series surged 64%
- Expect vehicle business to improve in 2H after the recent production disruptions
What’s new
Great Wall Motor announced a profit alert after market close.
The management expect interim net profits to range between Rmb5.3bn and Rmb5.9bn, growth of 50-67%. This interim performance is ahead of expectation.
Better product mix has lifted interim profits, despite total vehicle sales fell by 16% to about 518,000 units.
Great Wall Motor is focusing on the high value product strategy and its Tang series has achieved strong sales at 64% expansion. The company has also streamlined its NEV models and has recorded some 20% growth in 1H22.
We currently have BUY rating with TP of HK$24.
