According to Orient Securities’ analysis, Changan Automobile experienced a year-on-year decline in net profit attributable to shareholders for both the first half of the year and the second quarter, though a sequential growth was observed in the second quarter. Profit growth was affected by exchange rate fluctuations; however, the overseas business exhibited robust growth momentum, with international markets emerging as the primary driver of expansion. As production capacity at the Brazil plant ramps up and partnerships with European dealers progress, Changan Automobile is poised for further growth in sales and profit margins. In the realm of new energy vehicles, Changan Automobile continues to refine its product lineup, having obtained official L3 autonomous driving licenses and L4-level Robotaxi testing permits. The company aims to achieve mass production of L3-level vehicles by 2027 and full-scenario L4-level capabilities by 2028. Based on this assessment, Orient Securities has adjusted downward its forecasts for Changan Automobile’s net profit attributable to shareholders for the 2026-2028 period, while maintaining an average PE valuation of 18 times for 2026, a target price of RMB 8.46, and a ‘Buy’ recommendation.