Great Wall Motor’s Q3 Earnings Disappoint Amid Profit Plunge

Great Wall Motor Company delivered a surprising earnings shock in its third-quarter results, with net profit plummeting dramatically despite growing revenues. The Chinese automaker reported net profit of 2.30 billion yuan, falling a substantial 45 percent below analyst expectations and raising concerns about the company's current profitability trajectory.

While the automotive manufacturer posted a 20.51 percent increase in operational revenue to 61.25 billion yuan, this positive performance was overshadowed by significant declines in both overall profit and shareholder returns. Total profit decreased by 21.25 percent, with profit attributable to shareholders dropping 31.23 percent. For the first three quarters combined, net profit settled at 8.63 billion yuan, representing a marked reduction compared to the same period last year. This combination of rising revenues alongside contracting margins has prompted questions about the effectiveness of the company's current business strategy.

Market Analysts Maintain Cautious Optimism

Despite the disappointing quarterly performance, financial experts maintain a guardedly positive outlook on Great Wall Motor's prospects. The average price target for the company's H-shares stands at HK$19.73, suggesting potential upside of 25.92 percent from current trading levels. Among covering analysts, 23 maintain buy recommendations, six suggest holding positions, and only two advocate selling the stock.

Should investors sell immediately? Or is it worth buying Great Wall Motor Company?

Strategic Expansion Initiatives

The automaker is banking on international growth to reverse its fortunes, announcing plans to introduce at least seven new models to the European market by mid-2026. These will include vehicles from its Haval product line and new compact cars under the ORA brand. Additionally, the company has entered a partnership with Appning to integrate an app marketplace into its vehicles, initiatives designed to accelerate development in smart vehicle technologies.

The critical question facing investors is whether these expansion plans will prove sufficient to overcome the current profitability challenges. The answer may emerge when Great Wall Motor releases its next quarterly results in spring 2026, potentially revealing whether the Chinese automaker has successfully engineered a turnaround.