C Suisse: GREATWALL MOTOR Sales, Pricing Weaker Than Expected; Target Cut to $8
2017/05/09 10:14

Credit Suisse, in its report, cut the target price of GREATWALL MOTOR (02333.HK)  -0.060 (-0.671%)    Short selling $26.19M; Ratio 18.760%   from $8.5 to $8, maintaining at Neutral.

Great Wall's April sales still fell 8% yearly, the first yearly drop in the past 20 months despite its heavy promotion, such as the RMB1 billion "red packet" cash incentive programme and RMB9,000-15,000 per unit official discount for certain models. Credit Suisse said this reflected weak overall China passenger vehicle market demand, and increasingly tough price competition with more SUV makers joining the price war.

Credit Suisse said Great Wall's weak momentum is likely to continue in May, given its first-week sales fell 24% yearly. The broker expected Great Wall to take more actions, either an official price cut or promotion, so as to achieve its 17% full-year 2017 growth target. Considering the weaker-than-expected sales and pricing, the broker revised down its 2017-19 earnings estimates by 2-3%.
(Quote is delayed for at least 15 mins.Short Selling Data as at 2018-03-16 16:25.)

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