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)