[ET Net News Agency, 26 September 2018] UBS Global Research lowered its target price
for China Yongda Automobiles Services (03669) to HK$9.25 from HK$12.6, and maintained its
"buy" rating.
The research house said Yongda's share price has corrected more than 17% year-to-date.
Despite its 4-17% 2018-20 EPS forecasts cut due to lower sales growth assumptions for
Mercedes and BMW, UBS said its FY2018-20 China premium car sales forecasts CAGR of 12%
(down from 15%) remains above the overall passenger vehicle CAGR.
Also, BMW's margin is likely to improve from a low in 2Q. UBS expects a 12% premium car
sales CAGR in China in FY2018-20. It expects Yongda's premium car margin to reach
3.7%/4.0%/4.1% in FY2018/19/20. (KL)