Lyon: Great Wall Motor (02333) net profit in the third quarter lower than expected, reaffirms "outperform" rating.

Lyon released a research report stating that Great Wall Motor's third-quarter revenue increased by 20.5% year-on-year, with a gross profit margin dropping 0.4 percentage points to 18.4% for the quarter. However, the net profit was lower than market expectations. Nevertheless, as the company plans to launch new car models in the mass market and high-end market next year, the bank believes that the company's high-end strategy will continue to be realized, helping to increase its exports in regions like Europe and achieve a higher average selling price. The bank believes that Great Wall Motor's technological advantages and continued premium pricing ability will lay the foundation for its development next year. However, due to third-quarter profit adjustments, the bank has lowered its net profit forecast for this year by 0.5% and 10.8%, but reaffirmed its "outperform the market" rating with a target price of HK$21.