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

China Yongda Automobile Services Hldg / Equity Bottom-Up

<ul><li>Yongda Automobiles (Yonda)’s 2H23 net profit fell 59% HoH to RMB166mn, lower than our prior forecast by 12% due to lower-than-expected revenue and GPM of after-sales services.</li><li>As the net margin fell to below 1% with deteriorated new-car GPM, cost control becomes the key to Yongda’s profitability.</li><li>We believe cost control is attainable in FY24E given network optimization. </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.

Yongda Automobiles (Yonda)’s 2H23 net profit fell 59% HoH to RMB166mn, lower than our prior forecast by 12% due to lower-than-expected revenue and GPM of after-sales services.As the net margin fell to below 1% with deteriorated new-car GPM, cost control becomes the key to Yongda’s profitability.We believe cost control is attainable in FY24E given network optimization. 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.

Yongda Automobiles (3669 HK) - 2H23 Miss on GPM; Cost Control Key to FY24E

<ul><li>We project Yongda’s 2H23E net profit to fall 53% HoH to RMB189mn amid a deteriorating new-car GPM.</li><li>We cut our FY24E net profit by 45% to RMB670mn, due to slower-than-expected new car GPM recovery given fiercer competition from premium NEV models to traditional luxury brands.</li><li>Yongda’s shares are now trading at 5x FY24E P/E, which is undemanding given a dividend yield of 8%.</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 project Yongda’s 2H23E net profit to fall 53% HoH to RMB189mn amid a deteriorating new-car GPM.We cut our FY24E net profit by 45% to RMB670mn, due to slower-than-expected new car GPM recovery given fiercer competition from premium NEV models to traditional luxury brands.Yongda’s shares are now trading at 5x FY24E P/E, which is undemanding given a dividend yield of 8%.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.

Yongda Automobiles (3669 HK) - New Car GPM May Be Hurt More than Expected

<ul><li>Maintain BUY. Yongda’s 1H23 net profit fell 40% YoY to RMB 407mn, slightly lower than our prior forecast but higher than some investors’ pessimistic expectation.</li><li>Yongda’s 1H23 earnings YoY decline was between Zhongsheng (881 HK, NR) and Meidong (1268 HK, HOLD).</li><li>We expect Yongda’s new-car GPM to improve slightly HoH. </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. Yongda’s 1H23 net profit fell 40% YoY to RMB 407mn, slightly lower than our prior forecast but higher than some investors’ pessimistic expectation.Yongda’s 1H23 earnings YoY decline was between Zhongsheng (881 HK, NR) and Meidong (1268 HK, HOLD).We expect Yongda’s new-car GPM to improve slightly HoH. 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.

Yongda Automobiles (3669 HK) – New-Car GPM May Bottom Out in 2H23E

<ul><li>Maintain BUY. We project Yongda’s 1H23E net profit to fall 34% YoY to RMB 445mn amid price war and we cut our FY23E net profit to RMB 1.2bn.</li><li>Given that major luxury automakers in China provided significant additional rebates to dealers in 1H23, we are of the view that new-car GPM of about 1% could be a bottom for Yongda.</li><li>We project 1H23E net profit to be RMB 445mn. We project Yongda’s newcar sales volume to rise 16% YoY to about 89,000 units in 1H23E due to low base, with average selling price falling about 11% YoY amid price war.</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. We project Yongda’s 1H23E net profit to fall 34% YoY to RMB 445mn amid price war and we cut our FY23E net profit to RMB 1.2bn.Given that major luxury automakers in China provided significant additional rebates to dealers in 1H23, we are of the view that new-car GPM of about 1% could be a bottom for Yongda.We project 1H23E net profit to be RMB 445mn. We project Yongda’s newcar sales volume to rise 16% YoY to about 89,000 units in 1H23E due to low base, with average selling price falling about 11% YoY amid price war.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.

Yongda Automobiles (3669 HK) – 1H23E Preview: New-Car GPM Could Be a Bottom

Thematic (Sector/Industry)

<ul><li>China’s passenger-vehicle (PV) retail sales volume fell 1% YoY in first four months of 2023, 2% higher than our forecast made in Dec 2022.</li><li>Wholesale volume also rose 7% YoY YTD, 3% higher than our prior forecast, largely due to doubled PV exports in the first four months of 2023.</li><li>Automakers in China started to cut inventories in Apr 2023, as we had expected.</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.

China’s passenger-vehicle (PV) retail sales volume fell 1% YoY in first four months of 2023, 2% higher than our forecast made in Dec 2022.Wholesale volume also rose 7% YoY YTD, 3% higher than our prior forecast, largely due to doubled PV exports in the first four months of 2023.Automakers in China started to cut inventories in Apr 2023, as we had expected.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.

China Auto Sector – Mixed picture ahead as inventory risk lingers

China

China Yongda Automobiles Services Holdings Ltd. retails passenger vehicles. The Company sells new and used vehicles and offers automobile rentals. China Yongda Automobiles also provides service.

China Yongda Automobile Services Hldg (3669 HK)

China Yongda Automobile Services Hldg (3669 HK)

Yongda Automobiles (3669 HK) - 2H23 Miss on GPM; Cost Control Key to FY24E

The company increased its dividend payout ratio to 53% in FY23, implying a dividend yield of 8%. The dividend payout ratio will probably not...

CMB International

Yongda Automobiles (3669 HK) - New Car GPM May Be Hurt More than Expected

We cut our FY24E net profit by 45% to RMB670mn, due to slower-than-expected new car GPM recovery given fiercer competition from premium NEV models...

CMB International

Yongda Automobiles (3669 HK) – New-Car GPM May Bottom Out in 2H23E

Maintain BUY. Yongda’s 1H23 net profit fell 40% YoY to RMB 407mn, slightly lower than our prior forecast but higher than some investors’...

CMB International

Yongda Automobiles (3669 HK) – 1H23E Preview: New-Car GPM Could Be a Bottom

Maintain BUY. We project Yongda’s 1H23E net profit to fall 34% YoY to RMB 445mn amid price war and we cut our FY23E net profit to RMB 1.2bn.

CMB International

China Auto Sector – Mixed picture ahead as inventory risk lingers

China’s passenger-vehicle (PV) retail sales volume fell 1% YoY in first four months of 2023, 2% higher than our forecast made in Dec 2022.

CMB International