DJ Great Wall Motor Could Be Weighed by Chip Shortage This Year -- Market Talk
0331 GMT - Great Wall Motor could be weighed by the impact of the semiconductor chip shortage in 2021, Daiwa Capital says, as its cuts its rating to outperform from buy and lowers its target price to CNY37.00 from CNY41.00. The shortage of semiconductor chips due to U.S.-China trade tensions could lower the automobile manufacturer's 2021 sales volume by 6%, the Japanese investment bank says. Daiwa estimates that 1.0 million to 1.2 million units could be affected across the industry and expects luxury automobile suppliers to attempt to offset the fall in sales volumes with price hikes. Shares are 0.2% higher at CNY34.07. (yiwei.wong@wsj.com)
(END) Dow Jones Newswires
April 22, 2021 23:31 ET (03:31 GMT)
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