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>We are of the view that the positive side of GAC’s 2Q24 earnings miss is that the company has started reform to increase synergies between different brands and cope with fast-changing market dynamics, including accelerating the launch of EREVs and PHEVs for Aion and Trumpchi, closer collaboration with Huawei to roll out competitive models.</li><li>These could lay a foundation for GAC to regain traction.</li><li>2Q24 earnings miss on both homegrown brands and JVs. GAC’s 2Q24 revenue fell 30% YoY on lower average selling price (ASP) and sales volume.</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 are of the view that the positive side of GAC’s 2Q24 earnings miss is that the company has started reform to increase synergies between different brands and cope with fast-changing market dynamics, including accelerating the launch of EREVs and PHEVs for Aion and Trumpchi, closer collaboration with Huawei to roll out competitive models.These could lay a foundation for GAC to regain traction.2Q24 earnings miss on both homegrown brands and JVs. GAC’s 2Q24 revenue fell 30% YoY on lower average selling price (ASP) and sales volume.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) - More EREVs, Tech Partnership to Revive Sales

<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

<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

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

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) - More EREVs, Tech Partnership to Revive Sales

GAC’s 2Q24 net profit of RMB300mn was only RMB130mn lower than our estimates due to the fair value gain of RMB1.1bn from Chenqi Tech’s (9680 HK,...

CMB International

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

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

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

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