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<Research> UBS Lowers Yongda Auto (03669.HK) TP to HKD1.26, Rating 'Sell'
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UBS published a research report indicating that Yongda Auto (03669.HK) recorded a non-IFRS adjusted net loss of RMB304 million in the second half of last year, compared to an adjusted net profit of RMB275 million in the previous fiscal year. During the period, new car sales fell by 10.7% year-on-year, and luxury car sales dropped by 13.3%. New car sales revenue declined by 13.3% in the second half of last year. The bank believes that besides the drop in sales volume, intensified market competition leading to a decrease in average selling prices was also a significant factor suppressing new car sales revenue growth. After-sales service revenue fell by 5.7% year-on-year, partly due to store closures and macroeconomic weakness. Looking ahead to 2026, UBS believes that the three major German car brands, BMW, Mercedes-Benz, and Audi, have reduced the suggested retail prices of most popular models in the first quarter of this year, which may help narrow retail discounts and reduce the financial pressure on dealers. The increased contribution from new energy vehicle brands should also support the recovery of new car gross margins. However, BMW's new models based on the next-generation electric vehicle platform will not appear in Chinese showrooms until the fourth quarter of 2026, with limited contribution expected this year. Additionally, the tightening of automotive financial rebate policies will continue to impact Yongda's commission income. Based on last year's second-half results, the bank lowered Yongda Auto's profit forecasts for 2026 to 2028 by 13% to 14%, reducing the target price from HKD1.45 to HKD1.26, maintaining a 'Sell' rating. (ec/da) 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 This article was automatically translated by AI, the Chinese version should be considered the authoritative version. 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. |
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