Chery (9973.HK): 2QE Core Profit Rmb4.5bn; More Update on Export/EU Tariff/Robotics

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Chery (9973.HK): 2QE Core Profit Rmb4.5bn; More Update on Export/EU Tariff/Robotics

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20 Jul 2026 02:12:18 ET │ 14 pages

Chery (9973.HK)

2QE Core Profit Rmb4.5bn; More Update on Export/EU Tariff/Robotics

CITI'S TAKE

We hosted a pre-blackout investor call with Chery on 20-July. (1) 2Q26

preview: We expect 2Q26 core profit at Rmb4.5bn (up ~35% QoQ), much

higher than for peer GWM (Double DG GWM-H to Sell; Maintain Chery Buy); Buy

(2) 2Q/FY26E GPM should be strong at 15-16% (versus 13.8% in 2025), Price (17 Jul 26 16:10) HK$24.94

thanks to an improved high-margin export sales mix; (3) July domestic

Target price HK$36.00sales should increase MoM and export sales could maintain steady

sequential growth. New models Luxeed V9/RX and iCAR V25 should further Expected share price return 44.3%

support 2H26 domestic sales growth; (4) the potential roll-out of EU PHEV Expected dividend yield 4.2%

tariff in 2H26 may strengthen Chery’s localized production edge in Europe.

Expected total return 48.6%

2H26E/2027E export outlook — Jun-26 export volume hit 185k units, with July- Market Cap HK$144,867M

August exports maintaining steady sequential growth, targeting monthly export US$18,471M

sales exceeding 200k units in the near term. Mgmt. maintains 2026 export sales

guidance at 1.8mn units and expects 2027 export sales to grow at least 20% YoY,

driven by (a) export NEV penetration hitting 40-50% in 2027 versus current 36%, (b)

high-end sales growth by introducing new models incl. Luxeed V9 and Freelander, Price Performance

(c) HEV sales growth (2026 export HEV sales at 100k units, vs. minimal sales in ‘25).

(RIC: 9973.HK, BB: 9973 HK)

EU PHEV tariff risk — Per mgmt., new tariffs on PHEV are highly likely to be rolled

out faster than expected in 2H26.