1102 GMT - Guangzhou Automobile looks set to post a wider-than-expected loss for the full year, Deutsche Bank analysts say after it swung to a loss in 1H. DB now expects the carmaker to post an annual loss of CNY2.65 billion versus the CNY744.8 million forecast previously. It assumes a much lower operating margin too, after GAC posted its worst-ever gross margin in 2Q. Fierce pricing competition in China's auto sector has pressured earnings. DB cites the price wars as a main driver of GAC's widened 2Q loss and margin decline. Fellow carmaker BYD has been offering dealers discounts since April, and GAC has been compelled to follow suit, leading to margin contraction, analyst Bin Wang says. DB cuts the stock to HK$3.50 to HK$3.90, but sticks to a buy rating. (jason.chau@wsj.com)
(END) Dow Jones Newswires
September 02, 2025 07:03 ET (11:03 GMT)
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