[ET Net News Agency, 5 September 2018] HSBC Global Research lowered its target price
for China Yongda Automobiles Services (03669) to HK$11 from HK$11.6, and maintained its
"buy" rating.
The research house hosted a post-results NDR for Yongda management on 31 August. It
noted that management foresees a 30% increase in traffic in July, compared with May and
June. August also saw quite strong rebound in traffic, but the company thinks the August
number is not a good indicator, as the change in import tariff rate is causing some
distortion in August orders. September or October are better indicators of the 2H sales
trend.
Management is confident of a margin recovery in 3Q versus 2Q. But HSBC is cautiously
optimistic on margin expansion as, per the August data, the average discount level
continues to widen although the BMW margin has slightly narrowed.
HSBc fine-tuned its earnings forecasts by cutting them 2%, 7% and 9% for 2018-20,
respectively, mainly to factor in slower expected growth in the auto finance business.
(KL)
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03669 YONGDA AUTO
Nominal 
2.080 +0.110 (+5.584%) Others
05/09/2018 15:32
[I-bank focus]HSBC lowers Yongda Auto (03669) to HK$11
| Remark: | Real time quote last updated: 26/04/2024 18:00 |
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