wwwhaktutsinfreespins| Morgan Stanley: 50% of Great Wall Motor's non-operating income may become recurring income

Morgan Stanley released a research report sayingWwwhaktutsinfreespinsTo quote the management of Great Wall Motor (02333) recorded 1.2 billion yuan in the first quarter of this year (the same below)WwwhaktutsinfreespinsNon-recurring income, broken down, of which 6WwwhaktutsinfreespinsThe government subsidy of .21 billion yuan covers local tax breaks in 2023, while the remaining 600 million yuan includes export tax rebates and tax subsidies for overseas production factories. The management believes that 50 per cent of its non-operating income of 1.2 billion yuan may become recurrent income if it continues to receive tax breaks at home and abroad.

The report said that the gross profit margin of Great Wall Motor in the first quarter of this year was 20%, up 4% from the same period last year, or 1% on a quarter-on-quarter basis.Wwwhaktutsinfreespins.6 percentage points, due to a good export mix and an increase in sales of "tank" cars. The increase in non-operating income from subsidies and tax rebates is also the main driver. But geopolitical uncertainty may obscure export power. The net profit of Great Wall Motor in the first quarter of 2024 was 3.2 billion yuan, higher than market expectations. Net profit per vehicle in the first quarter more than doubled from the same period last year to 11700 yuan. Non-recurrent income is 1.2 billion yuan, of which 621 million yuan is related to government subsidies. Great Wall management said it would maintain its export target of 500000 vehicles in 2024, focusing on expanding Latin America, ASEAN, the Middle East and so on. The expansion of sales channels and model lineup will be the key to the overseas strategy in 2024.