Morgan Stanley: Target price for Guangzhou Automobile Group (02238) is 3.9 Hong Kong dollars with a "overweight" rating.

Morgan Stanley's research report stated that Guangzhou Automobile Group's joint venture with Toyota has shown significant recovery, and they are optimistic about Guangzhou Automobile Group, believing that this may bring better long-term profit prospects. They set a target price of 3.9 Hong Kong dollars and rated it as "hold". Guangzhou Automobile Group is reportedly planning to launch a new car in November in collaboration with JD-SW and Contemporary Amperex Technology. The new car is believed to be an upgraded version of an existing model from Guangzhou Automobile Group, using Contemporary Amperex Technology's technology and selling it through JD's e-commerce platform. Although the impact of the product launch may not be as significant as some investors expected, it is still seen as a good marketing initiative. Morgan Stanley believes that it will take time for Guangzhou Automobile Group to reach a profit turning point, but the news mentioned above can help increase brand awareness and reach out to different customer bases.