CMB International: Raised target price of Guangzhou Automobile Group (02238.HK) to HKD 4.3, maintains "buy" rating.

Wisdom Financial APP learned that CMB International released a research report stating that although GAC Group (02238.HK) suffered a loss of 1.3 billion RMB in the second quarter, which was lower than the bank's expectations, the market is not expected to focus on its profit and loss situation this year. This is because GAC's new models to be launched in cooperation with Huawei next year may be more competitive, serving as a positive catalyst for the company. The bank also believes that the company's joint ventures and associated companies have significant room for reducing employee costs. The bank maintains a "buy" rating for GAC Group's H shares, raising the target price for H shares from 3.6 Hong Kong dollars to 4.3 Hong Kong dollars.