China's Chery Auto H1 gross margin rises on overseas sales, but net profit drops

Chery Automobile

20/08/2026 05:16

Overview
China passenger vehicle maker's H1 revenue rose slightly year-over-year
Net profit declined 11.7% year-over-year, while gross margin improved on overseas sales
Company did not declare an interim dividend for the period

Outlook
Chery Auto did not provide specific financial guidance

Result Drivers
OVERSEAS SALES MIX - Co said improved gross margin was mainly due to higher contribution from overseas sales, which carry higher margins
INCREASED ADMIN AND R&D COSTS - Co said higher administrative, R&D and other expenses contributed to net profit decline
LOWER FX GAINS - Co said decrease in other income and gains was mainly due to lower foreign exchange gains

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 143.28 bln
 
H1 Net Income Attributable
 
RMB 8.57 bln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto & truck manufacturers peer group is "buy."
Wall Street's median 12-month price target for Chery Automobile Co Ltd is HK$35.00, about 37.9% above its August 19 closing price of HK$25.38
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads
Aug 17 - China's Geely Automobile half-year profit slips on higher expenses
Aug 19 - China's Chery Automobile to set up UK research centre
Aug 19 - China drove global electric truck, bus sales above half a million in 2025

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Press Release s3://eap-prd-eu-west-1-source-content/eap_feed_proxy/fingerpost/HKSW/2026-08-20/366c58c3-ca09-41be-9fbb-a5399bf2062b.file
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)