[ET Net News Agency, 1 April 2020] Credit Suisse lowered its target price for Great
Wall Motor (GWM)(02333) to HK$6 from HK$6.3 but upgraded its rating to "outperform" from
"neutral" as the share price declined 11.9% in the past month.
The research house said GWM's 4Q 2019 net profit rose 23% to Rmb1.58bn, recording the
highest quarterly profit in the past six quarters.
Due to the coronavirus outbreak, GWM revised down its condition for "restricted A-share
and A-share option scheme". Credit Suisse thus revised down its 2020-21 profit estimates
by 4.4%-14.8%.
Looking ahead, Credit Suisse expects a wave of stimulus policies, such as increased
quotas in regions with auto purchase controls, direct cash subsidies, vehicle purchase tax
reductions. (KL)