[ET Net News Agency, 7 May 2021] Jefferies Research lifted its target price for BAIC
Motor (01958) to HK$3.3 from HK$3.2 and upgraded its rating to "buy" from "hold".
The research house said Beijing Benz volume sees moderate decline due to complexity of
the supply chain while higher sales rebates lead to lower margin. Meanwhile, Beijing
Hyundai recovers with increasing utilization.
Jefferies believes Beijing Brand focus on NEV could be an opportunity for BAIC to
strengthen its self-owned brand. Equity transfer in Beijing Benz may not occur in short
term due to intersecting holdings and support from the government. Key dealers are
expanding stores for Benz, which allows Benz brand vehicles to have more exposure,
benefiting BAIC's profitability. (KL)