[ET Net News Agency, 11 October 2018] Great Wall Motor (GWM)(02333) announced that
total vehicles shipment declined 15% YoY in September.
Citi Research said it is slightly encouraged by GWM September SUV's 36% month-on-month
recovery. Having said that, the strong MoM growth (after ASP cuts) suggests GWM has been
scarifying margin in exchange for volume market shares - overall 3Q SUV sales still fell
by 21% YoY and -5.5% QoQ.
Citi expects consensus to adjust GWM's valuation floor after considering (1) GWM's 3Q
core-earning on 26 October; and (2) The next few week's sales ramp up from F6, WEY SUVs,
P8 and ORA NEV models.
It maintained its "sell" call on GWM, with a target price of HK$3.4. (KL)