[ET Net News Agency, 18 February 2020] Daiwa Research lowered its target price for
Great Wall Motor (GWM)(02333) to HK$6.3 from HK$6.5 and maintained its "outperform"
rating.
The research house revised down its revenue forecasts for GWM over 2020-21 in view of
the current coronavirus outbreak. Despite the revisions, Daiwa still looks for GWM to post
earnings growth of 8-12% over the period, on the back of both margin and sales-volume
improvements.
Daiwa also expects GWM to deliver 1-11% volume growth over 2020-21 on the back of its
recent overseas factory acquisitions from GM in Thailand and India, which are slated to
contribute additional sales volume from 2021. (KL)