External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Guangzhou Automobile Group / Equity Bottom-Up

<ul><li>GAC Group (GAC)’s 1Q24 results were largely in line with our prior estimates and we maintain our FY24E net profit forecast of RMB5.4bn.</li><li>We are more conservative than management about Aion’s sales volume and profitability, as we believe that Aion needs quality growth (brand upscale, overseas expansion etc.) in FY24E to lay out foundation for long-term development.</li><li>We are of the view that Trumpchi’s PHEV solid sales growth could be overlooked by investors.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

GAC Group (GAC)’s 1Q24 results were largely in line with our prior estimates and we maintain our FY24E net profit forecast of RMB5.4bn.We are more conservative than management about Aion’s sales volume and profitability, as we believe that Aion needs quality growth (brand upscale, overseas expansion etc.) in FY24E to lay out foundation for long-term development.We are of the view that Trumpchi’s PHEV solid sales growth could be overlooked by investors.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

GAC Group (2238 HK) - In-Line 1Q24 Earnings

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Guangzhou Automobile Group / Event-Driven

<ul>
<li>The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.</li>
<li>SOUTHBOUND's consecutive buying streak ended on Monday 25-March, then started again. NORTHBOUND has started selling (but buying semi tech).</li>
<li>Hs rebounded vs As. AH Premia still wide. Fabulous two-week performance by the Quiddity Portfolio (+2.09% over the two weeks) on a delta 3:1 long H/short A</li>
</ul>


The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
SOUTHBOUND's consecutive buying streak ended on Monday 25-March, then started again. NORTHBOUND has started selling (but buying semi tech).
Hs rebounded vs As. AH Premia still wide. Fabulous two-week performance by the Quiddity Portfolio (+2.09% over the two weeks) on a delta 3:1 long H/short A


A/H Premium Tracker (To 12 Apr 2024):  Liquid AH Premia Still Very Wide, The Right Spreads Behaving

<ul><li>We estimate GAC Group (GAC)’s net profit to rise 22% YoY to RMB5.4bn in FY24E, as Aion’s upscale attempt, cost reduction and overseas expansion could help narrow its loss.</li><li>We are of the view that Aion needs quality growth in FY24E to lay out foundation for long-term development.</li><li>We project Trumpchi’s PHEV sales volume to triple YoY, which may be overlooked by investors.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We estimate GAC Group (GAC)’s net profit to rise 22% YoY to RMB5.4bn in FY24E, as Aion’s upscale attempt, cost reduction and overseas expansion could help narrow its loss.We are of the view that Aion needs quality growth in FY24E to lay out foundation for long-term development.We project Trumpchi’s PHEV sales volume to triple YoY, which may be overlooked by investors.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

GAC Group (2238 HK) - PHEV Could Be a New Catalyst

<ul><li>We revise GAC Group (GAC)’s FY24E net profit by 4% to RMB6.3bn, largely due to resilient equity income from joint ventures (JVs) and associates.</li><li>We expect Aion to be at a breakeven level in FY24E, and we are of the view that Aion needs quality growth in 2024. We believe GAC’s current valuation is attractive.</li><li>We project 4Q23E net profit to be RMB218mn. GAC’s 4Q earnings every year are the most volatile compared with other quarters, making it difficult for us to forecast.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We revise GAC Group (GAC)’s FY24E net profit by 4% to RMB6.3bn, largely due to resilient equity income from joint ventures (JVs) and associates.We expect Aion to be at a breakeven level in FY24E, and we are of the view that Aion needs quality growth in 2024. We believe GAC’s current valuation is attractive.We project 4Q23E net profit to be RMB218mn. GAC’s 4Q earnings every year are the most volatile compared with other quarters, making it difficult for us to forecast.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

GAC Group (2238 HK) - FY24E NP to Rise YoY on JVs and Aion

<ul>
<li>The New and Better (5mos old) A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.</li>
<li>SOUTHBOUND and NORTHBOUND flows were both sells, respectively, but liquid Hs with H/A pairs OUT-perform As on average by 100+bp. Liquidation by overseas investors feels finished.</li>
<li>STILL time to go long Hs vs As for the new year at 52wk wide discounts.</li>
</ul>


The New and Better (5mos old) A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
SOUTHBOUND and NORTHBOUND flows were both sells, respectively, but liquid Hs with H/A pairs OUT-perform As on average by 100+bp. Liquidation by overseas investors feels finished.
STILL time to go long Hs vs As for the new year at 52wk wide discounts.


A/H Premium Tracker (To 22 Dec 23): Wide Premia Narrow; Narrow Premia Widen. Stay Long Hs Vs As

China

Guangzhou Automobile Group Company, Ltd. manufactures, sells, and services automobiles. The Company is also involved in automobile parts and components, and auto finance and related services for both overseas and domestic markets.

Guangzhou Automobile Group (2238 HK)

GAC Group (2238 HK) - In-Line 1Q24 Earnings

GAC Group (GAC)’s 1Q24 results were largely in line with our prior estimates and we maintain our FY24E net profit forecast of RMB5.4bn.

CMB International

A/H Premium Tracker (To 12 Apr 2024): Liquid AH Premia Still Very Wide, The Right Spreads Behaving

"The right trades" bounced back dramatically from the week before the "quiet week" to now. The delta-neutral Quiddity Portfolio gained 2+%. AH...

Travis Lundy

GAC Group (2238 HK) - PHEV Could Be a New Catalyst

We estimate GAC Group (GAC)’s net profit to rise 22% YoY to RMB5.4bn in FY24E, as Aion’s upscale attempt, cost reduction and overseas expansion...

CMB International

GAC Group (2238 HK) - FY24E NP to Rise YoY on JVs and Aion

We revise GAC Group (GAC)’s FY24E net profit by 4% to RMB6.3bn, largely due to resilient equity income from joint ventures (JVs) and associates

CMB International

A/H Premium Tracker (To 22 Dec 23): Wide Premia Narrow; Narrow Premia Widen. Stay Long Hs Vs As

Large cap and liquid Hs in H/A Pairs underperformed their As by 60bp, most of that on Friday on the gaming news. High A premium pairs saw Hs...

Travis Lundy