Lyon released a research report sayingcrashboompunkdownload, downgraded the rating of Ideal Car-W (02015) from "Buy" to "Outperform", lowered its valuation basis, and cut its target price from HK$163 to HK$96.
The report said the company's first-quarter gross profit margin narrowed by 2.5 percent on a quarter-on-quarter basiscrashboompunkdownload.9 percentage points, mainly due to discounts provided to older cars. Due to the resumption of price cuts starting in April, the bank is expected to further pressure on its ideal profitability in the next quarter. In addition, Ideal's three pure electric vehicles will be postponed until next year.
The bank said it would cut its revenue forecast for Ideal Cars by 10% and 6% respectively this year and next, and cut its net profit forecast by 33% and 22% to reflect the decline in gross profit margins and the postponement of the launch of pure electric vehicles.