（以下内容从招银国际《New-model sales as key after 1Q26 solid GPM》研报附件原文摘录）
长城汽车(601633)
Maintain BUY.Great Wall’s1Q26GPM beat our prior forecast despite industryheadwinds,which gives us more confidence in its FY26-27E GPM.We are ofthe view that the chance of rolling out a competitive new model for Great Wallis increasing given its planned12new models this year.
1Q26core profit largely in line,GPM beat.Great Wall’s1Q26revenuerose13%YoY amid a sales volume growth of5%YoY,or4%lower thanour prior forecast.GPM widened by0.6ppts YoY to18.5%in1Q26despiterising raw-material costs,0.7ppts higher than our forecast.SG&A and R&Dexpenses were largely in line with our projection.Recycling feereimbursement in Russia was at a slower pace than we had expected,which resulted in a net profit of RMB945mn in1Q26,in line with ourforecast excluding Russia’s recycling fee reimbursement.
We turn more positive on GPM in FY26-27E.Great Wall’s GPM beat ourforecasts by two quarters in a row,which gives us more confidence in itsfull-year margins despite rising raw-material costs.We project its FY26GPM to widen by0.1ppts YoY to18.1%,aided by rising exports,the newplatform Guiyuan and better product mix.We expect the cost reductionefforts from the new platform to be more apparent in FY27E with more newmodels.Therefore,we project FY27E GPM to be17.9%despite a morecompetitive industry landscape.
Possible positive surprise from a plethora of new models.Great Wallplans to roll out about12new models in FY26E,the same amount as FY24and FY25combined.Although we are of the view that Great Wall is stilloptimizing its model line-up after the lessons from the Wey Lanshan,Gaoshan and Ora5,the chance of having a more competitive new modelis increasing.We project its FY26E sales volume to rise10%YoY to1.45mn units,largely driven by Wey.We expect Wey and Ora to furtherdrive FY27E sales volume higher to1.6mn units.
Valuation/Key risks.We cut our FY26E net profit forecast by13%toRMB10.2bn with slightly lower sales volume,higher selling expenses andlower other income assumptions.We raise our FY27E net profit by4%toRMB11.8bn as new model effect could be more apparent next year.Wemaintain our BUY rating and H-share target price of HK$19.00,based on12x FY27E P/E(prior12x FY26E P/E).Our A-share target price ofRMB28.50is based on Great Wall’s average A/H premium of70%over thepast six months.Key risks to our rating and target price include lower salesvolume and margins than we expect,as well as a sector de-rating.
