External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Maintain BUY. Although Meidong’s 1H26 earnings missed our expectation on both new-car and after-sales GPMs, we see positive signs for new-car GPM across different brands.</li><li>During our non-deal roadshow (NDR), management remained cautious, prioritizing store optimization and cost control, in a bid to safeguard positive cash flow and outlast peers.</li><li>Meidong’s net cash as of Jun 2026 was almost 1.6x its current market cap.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Maintain BUY. Although Meidong’s 1H26 earnings missed our expectation on both new-car and after-sales GPMs, we see positive signs for new-car GPM across different brands.During our non-deal roadshow (NDR), management remained cautious, prioritizing store optimization and cost control, in a bid to safeguard positive cash flow and outlast peers.Meidong’s net cash as of Jun 2026 was almost 1.6x its current market cap.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Meidong Auto (1268 HK) - Positive Signs Amid 1H Miss; Net Cash 1.6x Market Cap

<ul><li>Maintain BUY. Despite continued industry headwinds, Meidong has maintained healthy cash flow and balance sheet, which could help it survive longer.</li><li>Its 2H25 new-car GPM recovered faster than its peers and our prior expectation.</li><li>That gives us more confidence in its new-car GPM lift in FY26E, especially as foreign luxury carmakers are now more realistic about sales volume and pricing. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Maintain BUY. Despite continued industry headwinds, Meidong has maintained healthy cash flow and balance sheet, which could help it survive longer.Its 2H25 new-car GPM recovered faster than its peers and our prior expectation.That gives us more confidence in its new-car GPM lift in FY26E, especially as foreign luxury carmakers are now more realistic about sales volume and pricing. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Meidong Auto (1268 HK) - Expect Profit Growth in FY26-27 Following 2H25 New-Car GPM Recovery...

Thematic (Sector/Industry)

<ul><li>We summarize the Feb 2026 price discounts at dealers for major automakers in this report.</li><li>Note that Feb discounts for each automaker are calculated based on the weighted average of Jan 2026 retail sales volume for each model, as Feb 2026 retail sales volume data have not been released yet.</li><li>On the surface, China’s industrywide average discounts remained flat in Feb 2026 vs. Jan 2026 and Dec 2025 based on our calculations, as narrower discounts for German brands offset wider discounts for other brands. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We summarize the Feb 2026 price discounts at dealers for major automakers in this report.Note that Feb discounts for each automaker are calculated based on the weighted average of Jan 2026 retail sales volume for each model, as Feb 2026 retail sales volume data have not been released yet.On the surface, China’s industrywide average discounts remained flat in Feb 2026 vs. Jan 2026 and Dec 2025 based on our calculations, as narrower discounts for German brands offset wider discounts for other brands. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Auto - 1Q26 carmakers’ margins under pressure amid rising discounts

<ul><li>We maintain our China PV sales volume growth forecasts for 2026 on both retail and wholesale basis after weaker-than-expected Nov and Dec sales.</li><li>We revise down our 2026 NEV sales volume slightly, as the new trade-in subsidies have stringent requirements.</li><li>We are of the view that weaker-than-expected 4Q25 sales volume may result in earnings miss for some automakers. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We maintain our China PV sales volume growth forecasts for 2026 on both retail and wholesale basis after weaker-than-expected Nov and Dec sales.We revise down our 2026 NEV sales volume slightly, as the new trade-in subsidies have stringent requirements.We are of the view that weaker-than-expected 4Q25 sales volume may result in earnings miss for some automakers. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Auto - Weak 4Q25 sales may lead to earning miss

<ul><li>Both passenger vehicle (PV) retail sales and wholesale volumes in China are likely to hit new highs in 2025E.</li><li>That, along with trade-in subsidy and purchase-tax saving phase-out, could make 2026 interesting and complex.</li><li>Resilient industry growth despite subsidy cuts. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Both passenger vehicle (PV) retail sales and wholesale volumes in China are likely to hit new highs in 2025E.That, along with trade-in subsidy and purchase-tax saving phase-out, could make 2026 interesting and complex.Resilient industry growth despite subsidy cuts. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Auto - 2026 Outlook: Second half of the NEV match

China

China MeiDong Auto is a multi-franchise automobile dealership group operating in the People's Republic of China, focusing on luxury and mid-to-high-end brands such as Porsche, BMW, Lexus, and Toyota. The company's core activities include the sale of new passenger cars and spare parts, along with comprehensive after-sales services, value-added services, and used vehicle trading. Founded in 2003, its headquarters are located in Dongguan, China.

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China MeiDong Auto (1268 HK)

Meidong Auto (1268 HK) - Positive Signs Amid 1H Miss; Net Cash 1.6x Market Cap

Maintain BUY. Although Meidong’s 1H26 earnings missed our expectation on both new-car and after-sales GPMs, we see positive signs for new-car GPM...

CMB International

Meidong Auto (1268 HK) - Expect Profit Growth in FY26-27 Following 2H25 New-Car GPM Recovery...

Maintain BUY. Despite continued industry headwinds, Meidong has maintained healthy cash flow and balance sheet, which could help it survive longer.

CMB International

Auto - 1Q26 carmakers’ margins under pressure amid rising discounts

Note that Feb discounts for each automaker are calculated based on the weighted average of Jan 2026 retail sales volume for each model, as Feb 2026...

CMB International

Auto - Weak 4Q25 sales may lead to earning miss

We maintain our China PV sales volume growth forecasts for 2026 on both retail and wholesale basis after weaker-than-expected Nov and Dec sales.

CMB International

Auto - 2026 Outlook: Second half of the NEV match

Resilient industry growth despite subsidy cuts. We project China’s PV retail sales volume to be largely flat YoY and wholesale volume to rise 2.9%...

CMB International

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