Morgan Stanley: Gives GAC Group a target price of HKD 3.90 and a rating of "Overweight"

Morgan Stanley released a research report stating that due to the significant recovery of the joint venture between GAC Group and Toyota, it is optimistic about GAC and believes it may bring better prospects for its long-term profitability, with a target price of HKD 3.9 and a rating of "Overweight." GAC Group is rumored to launch a new car in November in collaboration with JD Group-SW and CATL. The firm believes that this new car is a battery-swapping version of the existing Aion model, which will utilize CATL's technology and will be sold through JD's e-commerce platform. Although the impact of the product launch may not be as significant as some investors expect, it is still a good marketing initiative. Morgan Stanley believes that Aion's profitability turning point will still take time, but the aforementioned news will help enhance brand awareness and assist the brand in reaching different customer bases