[ET Net News Agency, 5 August 2019] Jefferies Research lowered its target price for
BAIC Motor (01958) to HK$5.4 from HK$5.9 and maintained its "buy" rating.
The research house said China luxury car market is far from saturation with only 6%
penetration on installment base. Jefferies sees a diminishing risk of Daimler buying out
stake in Beijing Benz. BAIC parent company has acquired 5% of Daimler stake and thus
stronger bargaining power. It is unlikely that Daimler will enrage its third-largest
shareholder to seek more shares in the JV.
BAIC's management guided for 20% less loss this year, which could be further narrowed
when it stops selling ICE (internal combustion engine) cars in the medium term, beginning
in 2020 in Beijing, and in 2025 across China. (KL)
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01958 BAIC MOTOR
Nominal 
1.790 -0.010 (-0.556%) Research Report
05/08/2019 15:20
{I-bank focus}Jefferies cuts BAIC Motor (01958) to HK$5.4
| Remark: | Real time quote last updated: 17/09/2024 17:59 |
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