China's BAIC Motor nine-month operating income drops, posts net loss

Overview

• China automaker's nine-month operating income fell sharply yr/yr, company posted net loss

Outlook

• Company did not provide specific guidance for future quarters or the full year in its press release

Result Drivers

• OPERATING-INCOME DECLINE – Operating profit swung to a RMB 961.4 mln loss as total operating income fell, outpacing lower costs

• ASSET IMPAIRMENTS – RMB892.9 mln in asset impairment losses, versus a RMB 0.1 mln gain a year earlier, weighed on operating profit

• INVESTMENT AND FAIR-VALUE LOSSES – Investment losses widened to RMB 610.0 mln and fair-value changes turned to a RMB 111.9 mln loss, impacting profit

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the auto & truck manufacturers peer group is "buy."

• Wall Street's median 12-month price target for BAIC Motor Corp Ltd is HK$0.80, about 21.2% above its October 29 closing price of HK$0.66

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• Oct 29 - BYD's third-quarter profit growth slows, falling short of forecasts

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)