0554 GMT - Guangzhou Automobile Group may face some earnings headwinds this year and the next after weaker-than-expected recurrent net profit in 2024, Deutsche Bank analyst Bin Wang writes in a note. The Chinese automaker's recent negative profit alert suggests that it booked a CNY3.3 billion to CNY4.7 billion recurrent net loss for 2024. The weaker-than-expected results were due to lower sales volume and more price discounts, Wang adds. Deutsche Bank cuts its net profit forecast for the company by 93% for 2025 and 22% for 2026. The brokerage maintains a buy rating on the stock but cuts the target price to HK$4.10 from HK$4.00. Shares last at HK$2.98. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
January 13, 2025 00:54 ET (05:54 GMT)
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