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<Research> UBS Lowers TP for ZHONGSHENG (00881.HK) to HKD12, Recommends Buy, Expects Net Profit Recovery from This Year
Recommend 4 Positive 2 Negative 1 |
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UBS published a research report indicating that ZHONGSHENG HOLDINGS (00881.HK) recorded a net loss of RMB652 million in the second half of last year, primarily due to banks tightening auto finance commission policies, leading to a decline in commission income, and a drop in the gross profit margin of after-sales services. The firm maintains the view that earnings have bottomed out and expects the company to benefit from the recommended retail price adjustments by the three major German car manufacturersMercedes-Benz, BMW, and Audias well as a new vehicle model cycle, along with increased contributions from the AITO brand. The firm anticipates that the company's net profit will recover from RMB360 million in 2025 to RMB2.9 billion and RMB3.9 billion in 2026 and 2027, respectively. It also believes that the current stock price has already reflected the negative impact of the tightened commission policies by major banks, while the market has overlooked the upcoming recovery. The target price is lowered from HKD18.6 to HKD12, maintaining a "Buy" rating. (ss/u) Auto-translated by third-party software This translation was auto-generated by third-party software. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
Website: www.aastocks.com |
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