(1) DJ EQS-News: Merrill Lynch Lifts PO of MeiDong Auto (1268.HK) as Luxury Margins Drive 2H20 Beat; Maintain Buy at HKUSD42.00 EQS-News / 12/04/2021 / 11:46 UTC+8 Merrill Lynch Lifts PO of MeiDong Auto (1268.HK) as Luxury Margins Drive 2H20 Beat; Maintain Buy at HKUSD42.00 Merrill Lynch (BofA) further lifts its price objective for China MeiDong Auto Holdings Limited (1268.HK) to HKUSD42.00 at Buy, as luxury margins led to 2H20 outperformance. The latest price objective represents an upside of 11.9% from the closing price of HKUSD37.55 on 7th April. On 2H20 results, BofA acknowledges MeiDong s net income was 6% ahead of its estimates, up 43% YoY to RMB450mn, despite a deeper than expected non-cash FX loss of RMB95mn. Car sales rose 25% YoY, while strong post-COVID demand helped lift 2H gross margin to 10.3% (+1.1ppts YoY) driven by the luxury car segment, plus growth in high margin after-sales service (+29% YoY).
China Meidong Auto Holdings Limited
ISIN: KYG211921021 Nachricht vom 12.04.2021 | 05:46
Merrill Lynch Lifts PO of MeiDong Auto (1268.HK) as Luxury Margins Drive 2H20 Beat; Maintain Buy at HK$42.00
EQS-News / 12/04/2021 / 11:46 UTC+8
Merrill Lynch Lifts PO of MeiDong Auto (1268.HK) as Luxury Margins Drive 2H20 Beat; Maintain Buy at HK$42.00
Merrill Lynch (BofA) further lifts its price objective for China MeiDong Auto Holdings Limited (1268.HK) to HK$42.00 at Buy, as luxury margins led to 2H20 outperformance. The latest price objective represents an upside of 11.9% from the closing price of HK$37.55 on 7th April.
On 2H20 results, BofA acknowledges MeiDong s net income was 6% ahead of its estimates, up 43% YoY to RMB450mn, despite a deeper than expected non-cash FX loss of RMB95mn. Car sales rose 25% YoY, while strong post-COVID demand helped lift 2H gross margin to 10.3% (+1.1ppts YoY) driven by the luxury car segment, plus growth in high margin after-sales se