Glonghui, May 17 | Bank of America Securities published a research report stating that the performance of GAC's Japanese brands in the mainland was weak, and the market share of related brands fell to 13% in the first four months of fiscal year 2024. Among them, the sales volume of GAC Toyota and GAC Honda during the same period decreased by 19% and 30%, respectively, compared with the same period last year. The bank said that the price war between mainland car brands continues, that GAC Toyota and GAC Honda's price discounts have continued to expand in the past two years, and it is expected that the trend of shrinking profits in their joint ventures will continue in the 2024-2025 fiscal year. Bank of America Securities also indicated that the mainland taxi market is becoming increasingly saturated, and new brands such as BYD and Mona, a subsidiary of Xiaopeng Motor, have joined the automobile market one after another, intensifying competition in the mainland market. In addition to causing GAC's Aian brand to drop 41% year-on-year in the first four months of 2024, the above situation also caused its growth prospects to slow down. Also, based on GAC's reduced investment income, the bank lowered its earnings per share forecast for the 2024-2026 fiscal year by 8%, 12%, and 10%, respectively. Taking into account the above factors, Bank of America Securities lowered the target price of GAC H shares from HK$3.9 to HK$3.6, while downgrading the rating from “buy” to “neutral”.