[ET Net News Agency, 2 September 2019] Nomura lowered its target price for BAIC Motor
(01958) to HK$4.9 from HK$5.2 and maintained its "neutral" rating.
Following lackluster 1H results, the research house lowered its 2019/20 EPS estimates
for BAIC by 9%/7% to reflect lower earnings contributions from its domestic brands and
Beijing-Hyundai which continue to lack a convincing earnings-turnaround strategy.
Nomura also believes that Beijing-Benz's earnings upcycle has already peaked and should
turn flattish from 2019 onwards.
Expansion of its dealer network, which underpinned the brand's strong volume growth in
recent years, has also reached a matured stage, Nomura said. It expects slower volume
growth coupled with tougher price competition, which would weigh on its profit margins.
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01958 BAIC MOTOR
Nominal 
2.200 -0.020 (-0.901%) Others
02/09/2019 10:56
{I-bank focus}Nomura lowers BAIC Motor (01958) to HK$4.9
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