[ET Net News Agency, 4 December 2018] HSBC Global Research lifted its target price for
China Yongda Automobile Services (03669) to HK$4.8 from HK$4.5 and maintained its "hold"
rating, given the earnings outlook uncertainty in 2019.
The research house said the target price hike for Yongda reflects lower beta as a result
of the lower trading volatility of recent share price movements. It set a target PE at
4.7x (previously 4.5x) as HSBC expects a slower earnings CAGR in FY2019-20. It thinks
earnings growth for FY2018 will turn negative while the outlook for a margin recovery
remains uncertain over the short term. (KL)