Strong growth of core business, Yongda motors third quarter performance exceeded expectations

category:Finance
 Strong growth of core business, Yongda motors third quarter performance exceeded expectations


Obvious recovery of industry situation

On October 13, the latest sales data released by the national passenger car market information association (hereinafter referred to as the passenger car Association) showed that the retail sales of passenger car market in September were 1.91 million, an increase of 7.3% compared with September last year, and the market recovery was obvious. At the same time, luxury cars still lead the market. In September, luxury car retail sales increased by about 33% year-on-year and 5% month on month. The market share remained at a historical high of about 15%. Cui Dongshu, Secretary General of the travel Federation, said that due to the consumption upgrading, there was a demand for high-end models to be replaced, and the promotion of luxury models led to the recovery of the market segments.

In particular, in the third quarter financial report released by BMW China, BMW sold 230612 new cars in the Chinese market, up 31.1% year-on-year, and the sales volume in China increased by 6.4% in the whole first three quarters, leading to the rise of luxury car brands in China. As the largest BMW dealer group in the world, Yongda will benefit from the strong performance of BMW brand this year. As a leading auto dealer group in China, Yongda focuses on the sales of luxury and super luxury brand cars as its core business. Its agency brands and network combinations include BMW, Porsche, Mercedes Benz, Audi, Lexus and other high-quality luxury brands. The diversified luxury car brands help to meet the changing needs of customers.

Policy supports frequent warm air blowing

Under the background of the new development pattern of double cycle, the automobile industry plays a role of economic stabilizer and ballast. Various local governments have also launched a number of assistance policies, through actively cultivating new consumption, holding cloud auto show, giving traffic compulsory insurance, etc., to drive the continuous rise of automobile consumption in various regions. On the morning of October 20, Meng Wei, spokesman of the national development and Reform Commission, said at the regular news conference of the national development and Reform Commission in October that the next step would be to promote the transformation and upgrading of the consumption of automobiles and household appliances, promote the transformation from purchase restriction to guided use, and encourage local governments to introduce policies to promote the replacement of old cars. Lang Xuehong, Deputy Secretary General of the China Automobile Circulation Association, said that in the consumption sector, the total retail sales of new cars alone accounted for 10% of the total retail sales of new cars. Stabilizing the automobile market will strongly drive the most favorable consumer coach among the three carriages.

The extensive economic recovery has boosted consumer confidence, and various promotional policies have also stimulated consumer demand, especially the upgrading and replacement demand for luxury brand cars. Beijing International Automobile Exhibition and other local large-scale auto exhibitions were held as scheduled in September and October. During the auto show, the enthusiasm of consumers to visit the exhibition was high, which further promoted the recovery and growth of the industry.

In the first quarter of this year, all walks of life were affected by the epidemic. In the second quarter, the leading luxury brand automobile dealer group represented by Zhongsheng and Yongda took the lead in stabilizing and recovering, and grew rapidly in the third quarter. In particular, the valuation of Yongda Automobile has great potential to rise, which has been continuously favored by many investment banks. Citigroup issued a report after Yongda announced the results, raising the target price of Yongda to HK $14.2 to maintain the buy rating; bocom also issued research reports, pointing out that the performance of Yongda in the third quarter was relatively strong, and it is expected that the growth momentum in the next few quarters will continue, raising the target price of Yongda to HK $14.5, and maintaining the buy rating; and moto raised the target price of Yongda to HK $15 Credit Suisse issued a research report, considering that the third quarter performance was stronger than expected, so it raised the profit forecast of Yongda motor (03669) from 2020 to 2022 by 0.2% to 2.4%, and the target price was raised from HK $13 to HK $13.5, maintaining the investment rating of outperforming the market. Source: editor in charge of mass news: Chen Tiqiang_ NB6485

In the first quarter of this year, all walks of life were affected by the epidemic. In the second quarter, the leading luxury brand automobile dealer group represented by Zhongsheng and Yongda took the lead in stabilizing and recovering, and grew rapidly in the third quarter. In particular, the valuation of Yongda Automobile has great potential to rise, which has been continuously favored by many investment banks. Citigroup issued a report after Yongda announced the results, raising the target price of Yongda to HK $14.2 to maintain the buy rating; bocom also issued research reports, pointing out that the performance of Yongda in the third quarter was relatively strong, and it is expected that the growth momentum in the next few quarters will continue, raising the target price of Yongda to HK $14.5, and maintaining the buy rating; and moto raised the target price of Yongda to HK $15 Credit Suisse issued a research report, considering that the third quarter performance was stronger than expected, so it raised the profit forecast of Yongda motor (03669) from 2020 to 2022 by 0.2% to 2.4%, and the target price was raised from HK $13 to HK $13.5, maintaining the investment rating of outperforming the market.