Investment Thesis and Valuation
We believe that the excellent sales result has set the tone of high-growth result for GAC in this year, and so we adjust the estimate of the company`s EPS to RMB 1.64/2.08 in 2017/2018, and target price to HKD 24.65, equivalent to 12.7/10x P/E ratio in2017/2018, and the “Buy” rating. (Closing price as at 21 Sep 2017)
