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>Maintain BUY. GAC’s 3Q23 earnings beat, as Aion turned profitable, which could be a positive catalyst. Equity income from JVs was also more resilient than expected.</li><li>We project GAC’s FY24E NP to rise 31% YoY to RMB 6.1bn.</li><li>3Q23 earnings beat. GAC’s 3Q23 revenue was 2% lower than our prior forecast while its GPM widened by 4.1 ppts QoQ and beat our projection by 3 ppts. </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.

Maintain BUY. GAC’s 3Q23 earnings beat, as Aion turned profitable, which could be a positive catalyst. Equity income from JVs was also more resilient than expected.We project GAC’s FY24E NP to rise 31% YoY to RMB 6.1bn.3Q23 earnings beat. GAC’s 3Q23 revenue was 2% lower than our prior forecast while its GPM widened by 4.1 ppts QoQ and beat our projection by 3 ppts. 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) – Aion’s Turning Profitable as a Positive Catalyst

<ul><li>Maintain BUY. GAC probably faces a mixed picture in 2H23 after an in-line 2Q23, as we are concerned about GAC Mitsubishi’s goodwill impairment.</li><li>On the other hand, we expect Aion to cut loss significantly in 2H23E and FY24E. We now value Aion at HK$ 62bn, based on 0.7x our FY24E P/S.</li><li>We believe more investors would pay attention to Aion, should its margins improve gradually. </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.

Maintain BUY. GAC probably faces a mixed picture in 2H23 after an in-line 2Q23, as we are concerned about GAC Mitsubishi’s goodwill impairment.On the other hand, we expect Aion to cut loss significantly in 2H23E and FY24E. We now value Aion at HK$ 62bn, based on 0.7x our FY24E P/S.We believe more investors would pay attention to Aion, should its margins improve gradually. 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) – Homegrown Brands Likely to Narrow Loss in 2H23

Thematic (Sector/Industry)

<ul><li>China’s passenger-vehicle (PV) retail sales volume fell 1% YoY in first four months of 2023, 2% higher than our forecast made in Dec 2022.</li><li>Wholesale volume also rose 7% YoY YTD, 3% higher than our prior forecast, largely due to doubled PV exports in the first four months of 2023.</li><li>Automakers in China started to cut inventories in Apr 2023, as we had expected.</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.

China’s passenger-vehicle (PV) retail sales volume fell 1% YoY in first four months of 2023, 2% higher than our forecast made in Dec 2022.Wholesale volume also rose 7% YoY YTD, 3% higher than our prior forecast, largely due to doubled PV exports in the first four months of 2023.Automakers in China started to cut inventories in Apr 2023, as we had expected.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.

China Auto Sector – Mixed picture ahead as inventory risk lingers

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

<ul><li>Toyota Motor Corp. and Hyundai Motor Co. have announced plans to start selling hydrogen fuel-cell passenger cars in China later this year, albeit on a small scale.</li><li>The auto giants’ plans mark a turning point for the Chinese hydrogen fuel-cell electric vehicle (FCEV) sector, which has so far mostly comprised commercial trucks, public buses and tractors. </li><li>Beijing has begun backing the sector in earnest this year, issuing a national roadmap that aims to have 50,000 hydrogen fuel-cell vehicles driving on China’s roads by 2025.</li></ul>

Toyota Motor Corp. and Hyundai Motor Co. have announced plans to start selling hydrogen fuel-cell passenger cars in China later this year, albeit on a small scale.The auto giants’ plans mark a turning point for the Chinese hydrogen fuel-cell electric vehicle (FCEV) sector, which has so far mostly comprised commercial trucks, public buses and tractors. Beijing has begun backing the sector in earnest this year, issuing a national roadmap that aims to have 50,000 hydrogen fuel-cell vehicles driving on China’s roads by 2025.

Toyota, Hyundai to Sell Hydrogen-Fueled Passenger Cars in China

<ul><li>Chinese firms are rushing to make their own auto chips as demand continues to increase in the world’s largest car market.</li><li>In 2023, there were more than 300 local auto chipmakers, nearly 10 times the number from three years ago, said Yuan Chengyin, general manager of National New Energy Vehicle Technology Innovation Center, a NEV research center funded by the Ministry of Science and Technology.</li><li>China provides the best market for auto chipmakers as the demand for smart driving cars is much higher compared with other countries, said Zhang Qiang, chairman of Wuxi-based auto chipmaker Xinchi Technology, at a business event Tuesday.</li></ul>

Chinese firms are rushing to make their own auto chips as demand continues to increase in the world’s largest car market.In 2023, there were more than 300 local auto chipmakers, nearly 10 times the number from three years ago, said Yuan Chengyin, general manager of National New Energy Vehicle Technology Innovation Center, a NEV research center funded by the Ministry of Science and Technology.China provides the best market for auto chipmakers as the demand for smart driving cars is much higher compared with other countries, said Zhang Qiang, chairman of Wuxi-based auto chipmaker Xinchi Technology, at a business event Tuesday.

Chinese Auto Chip Firms Racing to Cash In on NEV Boom 

China

Guangzhou Automobile Group Company Limited manufactures and sells automobiles. The Company vehicles, motorcycles, and other products. Guangzhou Automobile Group also provides automobile parts manufacturing, automotive business services, automotive finance, and other services.

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Guangzhou Automobile Group (601238 CH)

GAC Group (2238 HK) – Aion’s Turning Profitable as a Positive Catalyst

Maintain BUY. GAC’s 3Q23 earnings beat, as Aion turned profitable, which could be a positive catalyst. Equity income from JVs was also more...

CMB International

GAC Group (2238 HK) – Homegrown Brands Likely to Narrow Loss in 2H23

Maintain BUY. GAC probably faces a mixed picture in 2H23 after an in-line 2Q23, as we are concerned about GAC Mitsubishi’s goodwill impairment.

CMB International

China Auto Sector – Mixed picture ahead as inventory risk lingers

China’s passenger-vehicle (PV) retail sales volume fell 1% YoY in first four months of 2023, 2% higher than our forecast made in Dec 2022.

CMB International

Toyota, Hyundai to Sell Hydrogen-Fueled Passenger Cars in China

Toyota Motor Corp. and Hyundai Motor Co. have announced plans to start selling hydrogen fuel-cell passenger cars in China later this year, albeit...

Caixin Global

Chinese Auto Chip Firms Racing to Cash In on NEV Boom

Chinese firms are rushing to make their own auto chips as demand continues to increase in the world’s largest car market. In 2023, there were more...

Caixin Global

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