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 Automobiles Services / Equity Bottom-Up

China Yongda Automobiles Services (3669 HK)

<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

<ul><li>Maintain BUY. We believe Yongda’s FY22 analyst briefing has reaffirmed our prior argument that after-sales services could be key earnings driver. </li><li>We are more conservative than management in terms of new-car sales in FY23E. We are of the view that a substantial YoY decline in 1Q23E NP could be largely priced in. </li><li>We expect Yongda’s earnings to improve sequentially each quarter in FY23E.</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 believe Yongda’s FY22 analyst briefing has reaffirmed our prior argument that after-sales services could be key earnings driver. We are more conservative than management in terms of new-car sales in FY23E. We are of the view that a substantial YoY decline in 1Q23E NP could be largely priced in. We expect Yongda’s earnings to improve sequentially each quarter in FY23E.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) – FY23E NP to improve sequentially each quarter

<ul><li>Initiate with BUY. We initiate coverage of Yongda with a BUY rating and a target price of HK$ 8.50, based on 7x FY23E P/E.</li><li>Despite direct-sales attempts by some new-energy-vehicle (NEV) makers, we believe dealership business model is still justified.</li><li>We believe the majority of short-term negatives has been priced in given its low valuation now. </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.

Initiate with BUY. We initiate coverage of Yongda with a BUY rating and a target price of HK$ 8.50, based on 7x FY23E P/E.Despite direct-sales attempts by some new-energy-vehicle (NEV) makers, we believe dealership business model is still justified.We believe the majority of short-term negatives has been priced in given its low valuation now. 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) – After-sales as earnings driver amid low valuation

China

China Yongda Automobiles Services is a large-scale conglomerate focused on dealership services for international luxury automobile brands and new energy vehicle brands. The company provides new vehicle sales, after-sales services, automobile finance and insurance, pre-owned vehicle replacement and sales, and auto spare parts and maintenance. It was established in 1992 and is headquartered in Shanghai, China.

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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

Yongda Automobiles (3669 HK) – FY23E NP to improve sequentially each quarter

Maintain BUY. We believe Yongda’s FY22 analyst briefing has reaffirmed our prior argument that after-sales services could be key earnings driver.

CMB International

Yongda Automobiles (3669 HK) – After-sales as earnings driver amid low valuation

Initiate with BUY. We initiate coverage of Yongda with a BUY rating and a target price of HK$ 8.50, based on 7x FY23E P/E.

CMB International