2Q22: Earnings Up 39% yoy, In Line With Estimates
GAC’s 2Q22 net profit came in above estimates at Rmb2,742m, up 39% yoy and down 9% qoq. Looking ahead, we expect GAC’s earnings to be driven by the recovery of chip supplies and narrowing loss of its proprietary brands Trumpchi and Aion. We raise our 2022 net profit forecast by 15% and keep those for 2023-24 unchanged. Maintain BUY. Target price: HK$10.00.