Great Wall Falls After CLSA Cuts Stock Rating: Hong Kong Mover
Great Wall Motor Co. (2333), maker of China’s best-selling sport utility vehicle last year, fell the most in more than two weeks in Hong Kong trading after CLSA Ltd. cut its rating on the stock.
Great Wall declined 2.1 percent, the most since Jan. 15, to HK$30.90. The benchmark Hang Seng Index was little changed.
CLSA reduced its rating on Great Wall to sell from buy, with the stock-price estimate cut to HK$30.41 from HK$32.57, according to a note today. Among 37 analysts tracked by Bloomberg, 20 recommend buying shares of the Baoding, China- based company, eight have the equivalent of a hold rating, and six suggest selling.
Great Wall’s Haval was the best-selling SUV in China last year, with that category being the fastest-growing part of the car market, according to the state-backed China Association of Automobile Manufacturers. SUV sales in China, the world’s largest automotive market, are projected to climb 23 percent this year, the industry group said.
Net income jumped 66 percent to 5.68 billion yuan ($912 million) last year, the company said Jan. 21. Great Wall, whose sales rose 28 percent to 620,000 units in 2012, expects to deliver 700,000 vehicles this year and introduce 13 new models, the automaker said Jan. 26 on its website.
Great Wall’s shares have gained 26 percent this year, after more than doubling in 2012.
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