China's Chery Auto nine-month revenue rises year over year

Overview

• China auto maker's preliminary nine-month revenue rose yr/yr

• Net income attributable to shareholders declined slightly from prior year

• Results are preliminary and unaudited, company advises caution

Outlook

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

Result Drivers

• REVENUE GROWTH - Co reported higher nine-month revenue, driven by increased sales

• HIGHER GROSS PROFIT - Gross profit increased yr/yr, indicating improved profitability from core operations

• OTHER INCOME - Co said government grants and investment gains contributed to other income, though net foreign exchange gains declined

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "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 Chery Automobile Co Ltd is HK$36.00, about 56.1% above its October 29 closing price of HK$23.06

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads

• Oct 29 - Geely Automobile nine-month revenue up 13% on exports, product mix

• Oct 29 - BYD's nine-month net income falls 4.2% yr/yr

• Oct 29 - China's BAIC Motor nine-month operating income drops, posts net loss

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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.)