[ET Net News Agency, 3 September 2019] Jefferies Research lowered its target price for
Guangzhou Automobile (GAC)(02238) to HK$9 from HK$9.7 and maintained its "buy" rating.
The research house said GAC's stock price softened due to GAC Trumpchi's
worse-than-expected loss in 2Q.
But, Jefferies believes the worst is over as Trumpchi could see a sequential improvement
with (1) No more inventory pressure from China V/VI switch, (2) New cars to be
launched in 4Q, and (3) Margin concern relieved given more prudent capacity expansion.
Furthermore, new cars just launched or to be launched in 2H will further turn around its
margins, said Jefferies. It expects gross margin to recover to 11.5% in 2H from 7.2% in
1H. (KL)
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02238 GAC GROUP
Nominal 
3.250 +0.080 (+2.524%) Research Report
03/09/2019 10:32
{I-bank focus}Jefferies cuts GAC Group (02238) to HK$9
| Remark: | Real time quote last updated: 26/04/2024 16:54 |
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