EQS-News / 18/11/2019 / 16:52 UTC+8
Goldman Sachs initiated coverage on MeiDong Auto (1268.HK) at Buy with TP of
HK$10.1
Goldman Sachs initiated coverage on China MeiDong Auto Holdings Limited
(1268.HK) on the 14th November at Buy, with a target price of HK10.1,
representing an upside of 27.4% from the closing price of HK$7.93 as at 15th
November 2019.
Goldman Sachs sees MeiDong has long term competitive potential of its unique
Single City Single Store strategy ("SCSS"), operating primarily the
exclusive outlets for BMW, Lexus, Porsche, and Toyota brands among lower
tier cities.
Goldman Sachs also highlights that by representing these top brands in their
traditionally under-penetrated locations, MeiDong has achieved strong
pricing power in car sales, superior cash conversion, and a sticky customer
retention during or even after warranty.
The 12-month target price of HK$10.1 was calculated based on an equal blend
of 10x 2023E P/E and 7x 2023E EV/EBITDA.
Document: http://n.eqs.com/c/fncls.ssp?u=EMKGKKOCEW [1]
Document title: [MeiDong Auto] Goldman Sachs initiated coverage on MeiDong
Auto (1268.HK) at Buy with TP of HK$10.1
18/11/2019 Dissemination of a Financial Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
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1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=7635ded794434c8aee33d1d3c5f8b6d7&application_id=914969&site_id=vwd&application_name=news
(END) Dow Jones Newswires
November 18, 2019 03:52 ET (08:52 GMT)
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