| Valuation method | Value, HK$ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.30 | 98 |
| Intrinsic value (DCF) | 39.94 | 201 |
| Graham-Dodd Method | 11.80 | -11 |
| Graham Formula | 36.90 | 178 |
Great Wall Motor Company Limited is a prominent Chinese automobile manufacturer headquartered in Baoding, China, specializing in the research, development, production, and sale of vehicles and automotive components. Operating primarily under well-established brand names including Haval, WEY, ORA, Tank, and Great Wall Pickup, the company offers a diverse portfolio spanning SUVs, pick-up trucks, sedans, and new energy vehicles (NEVs). With a significant presence in China and expanding international operations across Russia, South Africa, Australia, and the Middle East, Great Wall Motor has established itself as a key player in the global automotive sector. The company's integrated business model encompasses everything from auto molds and NEV transmission systems to comprehensive after-sales services, logistics, and financial services, positioning it as a vertically-oriented automaker. Founded in 1984 and publicly traded on the Hong Kong Stock Exchange, Great Wall Motor continues to leverage its manufacturing expertise and brand portfolio to compete in the highly competitive consumer cyclical automotive industry.
Great Wall Motor presents a mixed investment case with several notable strengths and challenges. The company maintains a solid market position in the Chinese automotive market, particularly in the SUV and pickup truck segments where its Haval and Tank brands show strength. With revenue of approximately HKD 199.6 billion and net income of HKD 12.7 billion, the company demonstrates operational scale and profitability. However, investors should note the intense competition in China's auto market, particularly from domestic EV specialists and joint ventures with global automakers. The company's beta of 1.054 indicates slightly higher volatility than the market, reflecting the cyclical nature of the automotive industry. While the dividend payment of HKD 0.49 per share provides some income component, the company's substantial debt load of HKD 57.9 billion against cash reserves of HKD 30.7 billion warrants careful monitoring, especially in a rising interest rate environment. The company's international expansion efforts provide growth potential but also expose it to geopolitical risks and currency fluctuations.
Great Wall Motor operates in a highly competitive automotive landscape, particularly within China which remains the world's largest auto market. The company's competitive positioning is multifaceted: it maintains strength in specific vehicle categories like SUVs and pickup trucks where its Haval brand is well-established, while simultaneously expanding into the competitive electric vehicle space through its ORA brand. Great Wall's vertical integration, encompassing everything from research and development to manufacturing and financial services, provides cost advantages and quality control. However, the company faces intense competition from both domestic Chinese automakers and international joint ventures. In the traditional vehicle segment, Great Wall competes with manufacturers offering similar pricing and features, while in the NEV space, it faces specialized EV makers with potentially superior technology and brand recognition. The company's international presence, particularly in emerging markets like Russia and South Africa, provides diversification but also exposes it to different competitive dynamics and regulatory environments. Great Wall's multi-brand strategy allows it to target different consumer segments but also requires significant marketing investment and risks brand dilution. The company's relatively strong cash flow from operations (HKD 27.8 billion) provides resources for continued R&D investment, which is critical in the rapidly evolving automotive industry, particularly in electrification and autonomous driving technologies.