Citi: GAC Group (02238.HK) Signs Major Asset Restructuring Letter of Intent with FAW, Short-Term Sentiment Expected to Be Positive

Zhito Finance APP has learned that Citi issued a research report stating that GAC Group (02238.HK) announced on the 14th that it had signed a letter of intent for a major asset restructuring with FAW Group, planning to issue new shares to acquire part of FAW's equity in an unnamed vehicle manufacturing joint venture, with A-share trading expected to be suspended for no more than 10 trading days. Citi believes the target may be related to FAW Toyota and GAC Toyota, aiming to resolve long-term internal competition between the two Toyota joint ventures and address their respective operational pressures. It gives GAC's H-shares a target price of HK$2.3, and the bank believes the event catalyst is expected to bring short-term positive sentiment to GAC Group and Zhongsheng Group (00881.HK).