[I-bank focus]UOBKH starts BAIC Motor (01958) at HK$11.5

    UOB Kay Hian initiated coverage on BAIC Motor Corporation (01958) with a "buy" rating and a target price of HK$11.5.
  The research house said Beijing Benz is taking market share in the entry-level premium segment with new products. Meanwhile, Beijing Hyundai's sales have been recovering since March on the start of a strong product cycle, and the proprietary brand business should see losses narrowing by 17% p.a. in 2016-18 on the EV+SUV strategy.
  UOBKH expect BAIC's EPS to grow at a 35% CAGR in 2016-18, 10-33% above consensus, based on a higher profit estimate for Beijing Benz.