GAC (2238.HK): 2017 Result in Line, Good Start in 2018M2 March 13, 2018 849

Investment Summary

  • 2017 Result Forecast in Line with Expectation
  • Sales increase by more than 20% throughout 2017
  • Ideal situation in the first two months in 2018
  • The sales target for 2018 will be met hopefully
  • The overweight of a major shareholder gives a positive signal

Investment Thesis

2017 Result is in line with our expectation. With a good beginning and a brilliance new car plan in 2018, we believe that the excellent growth will last for GAC in this year, and so we reaffirm 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 9 March 2018)

About the author

Profile photo of Zhang Jing

Zhang Jing
Phillip Securities (HK)

Bachelor Degree in Tongji University of Engineering; Master Degree in East China Normal University of finance. Currently covering the automobile and air sectors. She has years of experience in investment research and is good at combining analysis for the companies with industry prospects.

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