[ET Net News Agency, 31 October 2019] Daiwa Research lowered its target price for
Guangzhou Automobile Group (GAC)(02238) to HK$9.8 from HK$9.9 and maintained its "buy"
rating.
The research house remains cautious about its self-owned brand's outlook for 4Q but sees
a meaningful earnings recovery from 2020. Also, it expects GAC's Japanese JV's earnings
growth to remain stable.
Daiwa said the new GS4, which is scheduled to launch in November, could support
Trumpchi's growth from 2020 as management targets 15k units/month of sales initially and
20k units/month later on.
Daiwa cut its 2019-21 EPS forecasts by 8-13% on worse-than-expected 3Q results at its
self-owned brand. (KL)