theScreener is the market leader for independent valuations of financial securities, equities, sectors and markets, and new funds. theScreener's ratings, analyses are used by leading banks, asset managers and financial portals. Approximately 10,000 workstations benefit from theScreener's services, with over millions of customer accounts actively analysed.
GWM’s sales volume growth slowed to 4.5% yoy in Oct 19 from 12% in 3Q19, missing management guidance, as inventories built up in the retail channel. We expect dealers’ destocking and inventory clearance to drag GWM’s sales and margins in 4Q19. In th longer term, GWM’s earnings will be continously pressured by lagging product R&D and stiff competition in China’s SUV market. Keep 2019-21 earnings estimates unchanged. Maintain SELL. Target price: HK$2.30.
GWM’s 3Q19 net profit came in above estimate at Rmb507m, up 507% yoy and 88% qoq, on a low base and cost cuts, including COGS, tax expenses and sales expenses. Management also guided for 20-30% mom growth in sales volume in Oct 19. We raise 2019F EPS by 17% on the better-than-expected 3Q19 results, but our earnings estimates still imply a 19%/14% profit drop in 2019-20, based on sustained price pressure amid escalating competition. Maintain SELL. Raise target price from HK$2.00 to HK$2.30.
According to dealers, BMW may skip the special rebates for 3Q19, which would benefit Brilliance at the expense of auto dealers with high exposure to BMW, eg Yongda and Zhengtong. Upgrade Brilliance from HOLD to BUY and raise target price by 5% to HK$10.00. Cut 2019 EPS estimates for Yongda, Zhengtong, Meidong and Zhongsheng by 10%/7%/4%//2%. Downgrade Meidong from HOLD to SELL given its stretched valuation after share price rally. Maintain MARKET WEIGHT.
CLICKS GROUP LIMITED (ZA), a company active in the Drug Retailers industry, reduced its market risk and raised its general evaluation. The independent financial analyst theScreener awarded an improved star rating to the company, which now shows 2 out of 4 possible stars; its market behaviour has improved and can be considered as defensive. theScreener believes that this new assessment merits an overall rating upgrade to Slightly Positive. As of the analysis date November 12, 2019, the closing price was ZAR 253.90 and its potential was estimated at ZAR 269.63.
NETCARE LTD. (ZA), a company active in the Health Care Providers industry, now shows a lower overall rating. The independent financial analyst theScreener just confirmed the fundamental rating of 2 stars out of 4, as well as the stock market behaviour of the title as moderately risky. However, environmental deterioration penalises the general evaluation, which is downgraded to Neutral. As of the analysis date November 12, 2019, the closing price was ZAR 16.83 and its expected value was estimated at ZAR 17.28.
The independent financial analyst theScreener just awarded an improved star rating to WESCO INTL.INCO. (US), active in the Electrical Components & Equipment industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 4 out of 4 possible stars. With regard to its market behaviour, it remains unchanged and can be qualified as risky. theScreener considers that these elements allow slightly upgrading its rating to Neutral. As of the analysis date November 12, 2019, the closing price was USD 54.52 and its expected value was estimated at USD 48.88.
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