What the broker said

PUBLISHED : Sunday, 09 October, 2005, 12:00am
UPDATED : Sunday, 09 October, 2005, 12:00am

The impending price squeeze in the auto sector prompted Core Pacific-Yamaichi to set a 'sell' recommendation for Denway Motors last year, though DBS Vickers Securities maintained a 'buy'.

Core Pacific-Yamaichi's move was influenced by the three rounds of price reductions that the mainland unit initiated because of the supply-demand imbalance.

But DBS Vickers Securities expected Denway to outperform its peers on the back of superior cost efficiency and marketing and set a 12-month price target of $3.40. Last month Denway Motors posted a 7.2 per cent rise in first-half net profit to $990.88 million as unit sales rose 32 per cent to 106,600.

The counter closed at $2.80 on Friday.