Great Wall Motor Slumps on Sales Growth Forecast

Great Wall Motor Co. (2333), China’s biggest sport utility vehicle maker, fell the most in more than two years in Hong Kong trading after it set a sales target that implies slower pace of growth than last year.

The stock plunged 8.5 percent to close at HK$39.35, the biggest drop since October 2011 and the second-worst performer on the MSCI Asia Pacific Index. Baoding, China-based Great Wall’s Shanghai-traded shares fell 3.2 percent to 39.50 yuan.

Great Wall aims to sell 17 percent more vehicles to 880,000 this year, compared with the 21 percent pace recorded last year, according to a posting by Shang Yugui, a spokesman of the company, on his personal Weibo page on Jan. 7.

“This leads to a 5 percent cut of our 2014 and 2015 earnings forecast as well as our price target,” Jack Yeung, an analyst of Morgan Stanley Asia Ltd., said in a report today, cutting the brokerage’s share-price target to HK$62.

To contact the reporters on this story: Billy Chan in Hong Kong at bchan101@bloomberg.net; Zhang Shidong in Shanghai at szhang5@bloomberg.net

To contact the editor responsible for this story: Jan Dahinten at jdahinten@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.