From a consumer perspective dealers seem unable to meet auto delivery demands (long wait times) and I would guess this should mean high demand for the Magnas of the world.
Thank you!
he global supply chain issue driven by the pandemic was challenging for MG in the last two years. MG is also expected to experience a short-term headwind of economic recession, which reduces consumer demand for new car purchases, affecting MG’s growth rate. On the other hand, it is true that there is also significant pent-up demand for auto manufacturing that is not fulfilled yet, which partially offsets the effect of the economic slowdown. Overall, we think the shares are quite cheap, trading at 9.9x Forward P/E. We like MG's economics as a leader in automobile component manufacturing, as well as the company’s policies of healthy dividend payment and share repurchase. We think it could do well on the other side of economic recovery.