[ET Net News Agency, 19 December 2019] Credit Suisse raised its target price for
Guangzhou Automobile Group (GAC)(02238) to HK$11 from HK$10.6 and maintained its
"outperform" rating.
The research house noted that GAC group's growth returned to a positive zone (up 16%) in
the first two weeks of December after five months of sales volume decline. Growth was
mainly driven by GAC Trumpchi local brand operation (up 79%) on the back of strong new GS4
SUV - up 196% YoY/168% MoM to 8,218 units in the first two weeks.
If this momentum continues (8K units GS4 SUV in two weeks), Credit Suisse said its
full-year GS4 volume assumption of 160,000 units looks achievable. In particular, GS4
SUV's derivative version, GS4 Coupe SUV, should launch in Apr-2020 to further boost GS4
SUV's family volume.
Considering better-than-expected GAC Trumpchi's GS4 sales volume, Credit Suisse revised
up GAC's net profit estimate by 2% for 2020 and 2021. (KL)
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02238 GAC GROUP
Nominal 
3.110 -0.050 (-1.582%) Others
20/12/2019 14:20
{I-bank focus}Credit Suisse lifts GAC Group (02238) to HK$11
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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