Core Viewpoint - Citigroup has raised the target price for Huachen China (01114) from HKD 3.75 to HKD 4.8, maintaining a "Buy/High Risk" rating, with expectations of a 4% month-on-month increase in retail sales for Huachen BMW to 46,000 units in November this year [1] Group 1 - Huachen BMW's overall inventory is expected to remain at a healthy level until the end of the year [1] - The anticipated reduction in the new energy vehicle purchase tax by half in the first quarter of next year is expected to provide sales visibility for Huachen BMW [1] Group 2 - Three new growth drivers are expected for Huachen China next year, including increased high-profit export sales from the "Jinbei" brand, an anticipated rise in domestic market share, and improved manufacturing efficiency through the use of industrial robots [1] - The increase in export sales for Huachen BMW is expected to create upward profit potential [1] - The enhancement of local sourcing for auto parts by Huachen BMW is believed to help stabilize profit margins [1]
花旗：重申华晨中国(01114)“买入/高风险”评级 目标价升至4.8港元