Great Wall Motor Slumps on Sales Growth ForecastBloomberg News
Great Wall Motor Co., 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.
— With assistance by Billy Chan, and Shidong Zhang