CHERY AUTO

Chery Automobile surged and then retreated during the morning session, briefly touching 26.72 HKD before sliding to 25.10 HKD by 10:46 BJ, down 5.43%, with a volume of 1.25 million shares and turnover of 31.80 million HKD. The decline was triggered by the White House trade adviser urging the EU to block Chinese automakers from entering local markets, clouding Chery's overseas expansion outlook; though executives' recent H-share purchases totaling 16.99 million HKD signaled internal confidence. Q1 revenue rose 2.21% YoY to 74.68 billion HKD, while net profit fell 5.07% YoY to 4.73 billion HKD, with EPS of 0.8139 HKD (-10.6% YoY) and a net margin of 6.33% improving sequentially. The stock now trades 28.24% below its 52-week high of 34.98 HKD, down 16.89% YTD, and sits below both the MA20 (25.52 HKD) and MA60 (27.59 HKD).

Chery Automobile opened at HK$26.000 in the morning session, rose to an intraday high of HK$26.340, then retreated to close at HK$26.000—up 0.93% from the previous close of HK$25.760, with an intraday gain of up to 2.25%. The session showed a spike-and-pullback pattern, trading within a HK$26.000–26.340 range on moderate volatility. On the news front, executives boosted H-share holdings by approximately HK$16.99 million, while Citi reaffirmed a Buy rating, bolstering sentiment. Meanwhile, local assembly of the V23 began in Thailand, and deliveries to the Middle East and Europe continued to expand, accelerating overseas momentum. However, Q1 2026 net profit fell 5.07% YoY to HK$4.73 billion, with a net margin of just 6.33%; the current price of HK$26.000 remains 25.67% below the 52-week high of HK$34.980, below the 60-day MA of HK$27.680, and down 13.91% YTD, balancing fundamental headwinds against overseas expansion tailwinds.

Chery Auto closed at HKD 25.14, down 0.24% from the previous close of 25.20, tracing a bounce-back pattern: after an early-morning spike to 25.88, it softened through the morning session, touched an intraday low of 24.70 in the afternoon, then recovered to 25.14 at the closing auction. The session weakness was driven by market digestion of June sales data: while June sales of 240,585 units rose 9.5% YoY, Q1 net profit of HKD 4.73 billion fell 5.07% YoY despite revenue growth of 2.21% to HKD 74.68 billion, and EPS of HKD 0.8139 dropped 10.6% YoY. Positive news flow included the launch of its Rosslyn plant in South Africa and a new showroom in Ras Al Khaimah, UAE, but the stock stayed below both MA20 (25.864) and MA60 (28.47) throughout the day. Year-to-date, the stock is down 16.75%, 28.13% below its 52-week high of 34.98 and 6.53% above the low of 23.60. However, the valuation remains supportive with a PE of 6.95x and PB of 2.34x, while the net profit margin improved to 6.33% from 5.45% in Q4.