Citi flags concerns on Australia's Eager Automotive's BYD franchise exclusivity

China Harmony Auto Holding

07/06/2024 05:03

** Shares of auto-dealership operator Eagers Automotive
 APE.AX  little changed at A$10.165, compared to a 0.3% climb in
the benchmark index  .AXJO  
        ** Stock trading with thin activity; trading vols at
less than a quarter of 30-day avg
  
    ** Analysts at Citi note two new BYD  002594.SZ  
dealerships opening in Australia, owned by China Harmony Auto
 3836.HK , despite APE's exclusive franchise agreement with the
Chinese EV maker
    ** Says APE may provide an update regarding the exclusivity
status of its BYD agreement at its investor day on June 11
    ** Citi says if APE owns 75% of BYD dealerships, it would
trim its FY25 group profit estimates by ~3% since current
estimates are based on its exclusive retail rights for BYD in
Australia
    ** APE stock down 29.8% YTD, as of last close

 (Reporting by Aaditya Govind Rao in Bengaluru)
 ((Aaditya.govindrao@thomsonreuters.com;))