By Clarence Leong
Shares of Great Wall Motor Co. fell sharply in Monday morning trading following its June vehicle sales data, which showed a marginal increase from a year earlier that underperformed its peers.
Hong Kong-listed Great Wall Motor shares fell 9.3% to HK$13.24, taking year-to-date losses to 51%.
Automakers were generally weaker in Hong Kong. BYD Co., Geely Automobile Holdings Ltd. and XPeng Inc. each lost between 4.7% and 5.2%. The broader benchmark Hang Seng lost 2.5% to 21178.32.
Great Wall Motor said Friday its June sales rose 0.5% from a year earlier to 101,186 units, while first-half sales fell 16%.
The slight increase in sales in June fell short of the overall passenger vehicle market growth of 41%, Daiwa Capital Markets analysts Kelvin Lau and Evelyn Zhang said in a note. For the first half, Great Wall Motor also lagged 3% market growth, they added.
Analysts pointed to the “disappointing sales volume” of two Great Wall Motor brands, Haval and WEY, noting that this is likely due to the lack of a type of chip the company flagged in March.
Daiwa nevertheless maintains its buy rating on the stock, noting that the company had an order book of 200,000 units at the end of June.
Write to Clarence Leong at [email protected]
(END) Dow Jones Newswire
July 10, 2022 11:10 p.m. ET (03:10 GMT)
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