DBS: Guangzhou Automobile Group – H: Buy Target Price HK$4.10; A: Hold Target Price RMB8.90

Self-brand the shining star

• GAC AION posted the second highest sales growth in the NEV industry in FY23; expect healthy sales in FY24  
• Japanese JV sales volume fell in FY23; rushing towards electric fleet to raise profile
• Share price impacted by weak profit contribution from Japanese JV 
• Maintain BUY for strong self-brand business and compelling valuation; new TP based on lower target PE FY24F due to macro uncertainties