[ET Net News Agency, 9 July 2019] CICC Research chopped its target price for Geely
Automobile Holdings (00175) by 41% to HK$9 and downgraded its rating to "neutral from
"buy".
The research house sees increasing uncertainty in Geely s profitability amid rising
sector pressure following Geely's release of a profit warning.
CICC noted excessive production capacity in the auto sector which should take longer to
see demand recovery. In addition, falling prices of JV brands weighing on domestic brands
efforts to move up the value chain.
Meanwhile, the sales volume of low-end products is weakening due to the rising
popularity of used cars. Greater efforts are required to balance the interest of different
parties during the sector downturn.
CICC cut its 2019-20 earnings forecast by 25.3% and 24.6% to Rmb8.09bn and Rmb8.87bn.
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00175 GEELY AUTO
Nominal 
10.020 +0.050 (+0.502%) Others
09/07/2019 11:30
[I-bank focus]CICC chops Geely Automobile (00175) to HK$9
| Remark: | Real time quote last updated: 28/05/2024 18:00 |
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