UOB Kay Hian lowered its price target for Geely Automobile (00175) to HK$3 from HK$4, and downgraded the stock to "sell" from "buy" given worse sales of its new models, slowing export growth, and margin pressure from price competition.
The house cut 2013/14/15 net profit forecasts by 9%/26%/30% on dimmer growth outlook. It believes the market has not fully factored in a sudden slowdown in earnings growth in 2013.
UOBKH believes the stock will be subject to de-rating if 1H 2013 disappoints the market. For 1H13, it expects Geely's net profit to grow by 9% yoy to RMB1.08b.
【你點睇】政府宣布10項短期控煙措施，你是否支持？「火車頭」問題未有規管，你接唔接受？► 立即投票
