Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>G Sachs Cuts TPs for 3 Major CN Car Dealers; New Car Sales Profits Hit New Lows
Recommend 8 Positive 8 Negative 9 |
||||
|
||||
|
Goldman Sachs commented in its research report that the 1H results of three major car dealers in China, namely ZHONGSHENG HLDG (00881.HK), MEIDONG AUTO (01268.HK), and YONGDA AUTO (03669.HK), indicated disappointing performances as all of them were dragged down by lower-than-expected profits from new car sales. Of which, the gross loss margin of new car sales of MEIDONG AUTO and ZHONGSHENG HLDG reached 5.1% and 3.3% respectively, while gross profit margin of new car sales of YONGDA AUTO stood at 1.6%. The management attributed the record low gross profit margin of the new car sales business to the macro-economic downturn and weak consumer market, as well as the impact of intensified competition among new energy vehicles. Goldman Sachs cut its 2024-2026 net profit forecast for ZHONGSHENG HLDG to between RMB2.9 billion and RMB5 billion and the TP from $21.9 to $19.5, with rating at Neutral. The broker also lowered its 2024-2026 net profit forecasts for MEIDONG AUTO to between RMB89 million and RMB638 million and the TP from $5.1 to $4.5, with rating at Buy. As for YONGDA AUTO, the broker trimmed its 2024-2026 net profit forecast to between RMB251 million and RMB679 million and the TP from $2.4 to $2.1, with rating at Sell. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
