UBS to raise target price for Chinese auto Unit

The bank said May 19 that the demand for cars in the mainland has regained growth, the demand for cars in the underdeveloped areas is catching up with the coastal area, and the government's support for auto consumption, local brand development and industry integration have resulted in a shift in product mix and lower prices, with small cars running in the medium term.　　Demand for cars is strong, but manufacturers ' growth is not consistent. The target price of the Great Wall Vehicle (02333.HK) was raised from HK $4.2 to HK $5.4, with a bullish product and geographical positioning to maintain a "buy" rating. While bullish on Dongfeng Group (00489.HK), the target price rose from HK $5.5 to HK $6.7, but it is believed that the current rate has reflected short-term earnings growth and maintained a "neutral" rating. June Wei Motor (00203.HK) is not the main beneficiary of the structural shift in demand, but based on the possibility of a recovery in Guangdong's demand for motor vehicles, the rating was upgraded from "neutral" to "buy", with the target price rising from HK $3.5 to HK $3.8.