Shanghai (ZXZC)- HSBC Securities recently lowered the earnings per share (EPS) forecast from year 2018-2020 of Great Wall Motor (GWM) by 11-16%, as the firm’s weak sales in July made HSBC Securities not optimistic about the sales status in the second half of this year. HSBC Securities still maintains its ‘buy’ ratings of GWM’s shares, but the target price was revised to HKD 8.3 from HKD 9.8. HSBC Securities also mentioned that the current valuations of H-shares and A-shares are lower than the historical average value.

GWM delivered 54,334 vehicles in July, sliding 21.33% over the previous year. During the past seven months, GWM's cumulative sales reached 525,849 units, edging down 0.75% from a year ago. By far, GWM has completed 45.33% of its 2018 sales target.

The cumulative sales of GWM's major SUVs reached 44,374 units, representing a YoY sales slump of 25.95% and a MoM drop of 15.64%. From January to July, GWM delivered 447,330 SUVs, decreasing 2.25% from a year ago.

GWM plans to use its premium brand WEY which applies similar technologies to the Haval to reshape the firm. GWM has invested less R&D expenditures compared with other Chinese indigenous manufacturers, while Spotlight Automotive project, the joint venture between GWM and BMW will help GWM use BMW’s advanced technologies.

Spotlight Automotive, representing a bright future, will have a significant influence on both GWM and BMW. This project is not only BMW's first worldwide pure electric vehicle JV project, but also is a significant step for GWM’s internationalization.

GWM’s stock price decreased by 1.04% to HKD 4.75, with its transaction price and latest market value being HKD 121 million and HKD 66.6 billion respectively.