[ET Net News Agency, 14 July 2020] Jefferies Research lifted its target price for Great
Wall Motor (GWM)(02333) to HK$9.2 from HK$6.7 and maintained its "buy" rating.
The research house said GWM should report 1H revenue/earnings of Rmb33.2bn/526mn
(-20%/-65%) with 1Q as a bottom. The strong sales momentum in June (+30%) was due to new
model launches, strong growth of pickup trucks, and more flexible auto financing loans.
Into 2H, Jefferies expects the newly launched Haval model on 10 June and the new
generation H6 in 3Q will boost sales and market share, given a lack of competitive new
launches. It forecast FY2020 revenue/earnings to decline 6.4%/11.8% suggestive of a
rebound of 3.7%/15.4% to Rmb56.9bn/3.4bn in 2H. (KL)