[ET Net News Agency, 3 October 2019] Credit Suisse raised its target price for China
Yongda Automobiles Services (03669) to HK$9.4 from HK$9.3 and maintained its "outperform"
rating.
Yongda Auto announced it has acquired Inchcape Asia Pacific for Rmb830mn. Inchcape
operates a Porsche dealership in Nanchang, a Mercedes-Benz dealership in Jiujiang, a Lexus
dealership in Shaoxing and an authorised Tesla repair center.
Considering the Rmb345mn net cash on Inchcape Asia Pacific's balance sheet and estimated
upcoming Rmb124mn net debt increase, Yongda Auto guided its total cash outflow at Rmb361mn
for this acquisition.
The research house said the Rmb361mn payment's implied 2018 pro forma P/E is 6.7x, below
the 8.7x of overall Yongda Auto's current 2018 P/E multiple. Credit Suisse expects a
1.1%-1.2% 2019-21 EPS increase from this acquisition. It estimated 3Q net profit of
Rmb320mn (up 50% YoY), which will be a strong catalyst. (KL)
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03669 YONGDA AUTO
Nominal 
1.920 -0.030 (-1.538%) Research Report
03/10/2019 18:01
{I-bank focus}CS lifts Yongda Automobiles (03669) to HK$9.4
| Remark: | Real time quote last updated: 23/04/2024 17:59 |
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