[ET Net News Agency, 29 October 2019] Daiwa Research raised its target price for Great
Wall Motor (GWM)(02333) to HK$6.3 from HK$5.7 and maintained its "hold" rating.
The research house revisited its forecasts for GWM after seeing better-than-expected
3Q results due to significant margin improvement. Daiwa expects some promotions during the
peak season in 4Q, but it sees little chance for large discounts as GWM's 9-month sales
volume is on track to meet its 2019 sales target (625.8k units, 68% of 2019 target of
1.07m) and it sees a gradual market recovery from 4Q.
Daiwa believes 3Q results proved management's execution capability in cost-cutting
initiatives rolled out in late-2018 and expect the momentum to continue in 4Q 2019-2020.
It also sees further YoY margin improvement in 4Q (14.5% versus 10% in 4Q 2018) on the
back of higher ASP due to more National 6 models/improving product mix and cost-efficiency
measures. (KL)
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02333 GWMOTOR
Nominal 
11.820 +0.600 (+5.348%) Others
29/10/2019 10:05
{I-bank focus}Daiwa lifts Great Wall Motor (02333) to HK$6.3
| Remark: | Real time quote last updated: 25/04/2024 16:30 |
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