DJ MeiDong Auto Could Ride on Stronger Lexus Dealership Network -- Market Talk
0247 GMT - China MeiDong Auto's efforts to strengthen its Lexus dealership network could further boost its presence in the Chinese luxury-car market, Daiwa Capital says. Demand for luxury cars is expected to remain strong, though there may be concerns about delivery delays in July and August amid a chip-supply shortage; Daiwa expects delayed shipments to be delivered in 4Q and 1Q. Its forecasts for MeiDong Auto's 2021-22 EPS are 2%-5% higher than market consensus because of optimism over the company's sales-volume growth. Daiwa maintains a buy rating on the stock and raises its target price to HK$55 from HK$48. Shares are 0.5% higher at HK$44.10. (justina.lee@wsj.com)
(END) Dow Jones Newswires
August 15, 2021 22:47 ET (02:47 GMT)
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