[ET Net News Agency, 6 July 2018] Credit Suisse trimmed its target price for Guangzhou
Automobile Group (GAC)(02238) to HK$8.1 from HK$11, and reiterated its "neutral" rating.
The research house said GAC's 1H total sales volume was up 5.5% YoY, versus the group's
10% YoY full-year growth target. Key disappointment was GAC Trumpchi's 1H sales accounting
for only 38% of its 2018 full-year sales.
Considering both the stronger-than-expected Toyota JV and disappointing GAC Trumpchi,
Credit Suisse estimated the GAC group's 1H earnings to edge up 3% YoY to Rmb6.5bn.
On the back of lower-than-expected margin, Credit Suisse lowered its 2018-20 EPS
forecasts by 14-15%. (KL)