[ET Net News Agency, 30 January 2020] Morgan Stanley lowered its target price for
Guangzhou Automobile Group (GAC)(02238) to HK$9 from HK$10 and maintained its
"equal-weight" rating.
The research house lowered its 2019 net profit estimate to Rmb7.6bn, from Rmb8.5bn,
mainly due to the weaker-than-expected performance of Trumpchi. With the ramp-up of new
GS4 not as strong as expected and the strong competition from JV brands and Chang'an,
Morgan expects Trumpchi to remain under pressure in 2020-21.
It lowered its 2020-21 net profit assumptions by 13-14% to reflect its lowered
assumptions on GAC Trumpchi. (KL)