Great Wall Motor Company Limited (GWMOTOR) saw its stock surge 6.09% on Thursday, as investors continued to ride the momentum of the recent rally. The automaker's shares have gained an impressive 26% over the past month and 46% in the last year.

However, concerns have been raised about the sustainability of GWMOTOR's stock price surge, given the company's earnings outlook. According to analysts' forecasts, GWMOTOR's earnings per share (EPS) are expected to decline by 1.2% annually over the next three years, in contrast with the broader market's projected growth of 12% per year.

GWMOTOR's current price-to-earnings (P/E) ratio of 8.1x is considered "middle-of-the-road" compared to the industry median in Hong Kong. While the stock's valuation doesn't appear stretched, analysts question whether it is justified given the forecast of declining earnings. They argue that the recent rally may have pushed the stock price ahead of its underlying fundamentals, potentially setting the stage for a correction.