GAC (2238.HK): High-growth sales has set the tone of excellent result September 25, 2017

  • Soar of 60% in Earnings of H1 2017
  • Growth in Q2 Decreased
  • Both Independent & Joint Venture Continually Pushed the Company`s profitability

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)

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