Core Viewpoint - Bank of America Securities has downgraded the target price for Beijing Automotive (01958) to HKD 1.9 due to disappointing third-quarter performance [1][2] Financial Performance - Beijing Automotive reported third-quarter revenue of RMB 38.4 billion, representing a year-on-year decline of 23% and a quarter-on-quarter decline of 4% [2] - The gross margin for the period was 9.7%, down 8.9 percentage points year-on-year and 4.4 percentage points quarter-on-quarter [2] - The net profit for the quarter was RMB 51 million, falling short of both Bank of America’s and market expectations [2] Forecast Adjustments - The company has adjusted its revenue forecasts for 2025 to 2027 down by 0.4% each year [2] - Gross margin forecasts have been reduced by 2, 1.8, and 2.3 percentage points for the same period [2] - Profit forecasts for the same years have been cut by 59%, 51%, and 53% respectively [2] Rating and Target Price - The target price has been lowered from HKD 2 to HKD 1.9, maintaining a "Underperform" rating [2] - The expectation is that profits from Beijing Benz will be offset by losses from BAIC's self-owned brands [2]
美银证券：降北京汽车(01958)目标价至1.9港元 第三季表现逊预期