June Wei car rises 1% Citi reiterates buy rating

June Granville car morning low open high, share prices half a half-day rose 0.81% to 3.72 Hong Kong dollars, deal 2.492 million shares.　　Citi issued a report saying it would maintain the buying rating of the unit, with a target price of HK $3.85, 3.5% per cent premium. Citigroup points to a 5% to 128,963 increase in car sales in the first 5 months of June-Wei, which accounts for 40% of the bank's estimated annual sales, but less than a year-on-year increase of 16% per cent in the country.　　Its Guangzhou Honda product portfolio deteriorated from a year earlier, with the average price of the accord and Odyssey MPV higher, and the market share of the first 5 months of this year down from 61% per cent to 58%. But Citi still predicts that Guangzhou Honda's 2009-year car sales will increase 5% from a year earlier, in line with the overall growth of the auto market in the mainland. Net profit for 2009 is expected to increase by 7% over the previous year. The 2009 is likely to be the lowest growth year in the current slowdown in car sales, but it is more optimistic about the mainland's passenger car market, as the mainland's auto industry incentive plan could work to spur demand for passenger cars.