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.

Credit

<ul><li>Zhongsheng (rated Baa2/BBB/BBB by Moody’s/S&amp;P/Fitch)’s 1H25 operating performance continued to be dragged by the weak new car sales and the negative gross margin of new car sales.</li><li>That said, we take comfort with its solid credit, supported its consistent positive FCF, reducing debts and low near-term refinancing pressure through the active liability management since Jul’24.</li><li>ZHOSHK 5.98 01/30/28 has been outperforming since Jul’25, cash price has since been 2pts higher and credit spared tightened 50bps. </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.

Zhongsheng (rated Baa2/BBB/BBB by Moody’s/S&amp;P/Fitch)’s 1H25 operating performance continued to be dragged by the weak new car sales and the negative gross margin of new car sales.That said, we take comfort with its solid credit, supported its consistent positive FCF, reducing debts and low near-term refinancing pressure through the active liability management since Jul’24.ZHOSHK 5.98 01/30/28 has been outperforming since Jul’25, cash price has since been 2pts higher and credit spared tightened 50bps. 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.

CMBI Fixed Income - ZHOSHK: Credit Profile Remains Solid Under a Challenging Operating Environment

Equity Bottom-Up

<ul><li>Initiate buy recommendations on ZHOSHK’25 (CB) and ‘26 We initiate the coverage on Zhongsheng and buy recommendations on ZHOSHK 0 05/21/25 (CB) and ZHOSHK 3 01/13/26.</li><li>We consider Zhongsheng (rated Baa2/BBB/BBB by Moody’s/S&amp;P/Fitch) a solid IG credit with leading market position and adequate liquidity profile.</li><li>Zhongsheng experienced lower car sales and weaker profit margin over the past 2 years. </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 buy recommendations on ZHOSHK’25 (CB) and ‘26 We initiate the coverage on Zhongsheng and buy recommendations on ZHOSHK 0 05/21/25 (CB) and ZHOSHK 3 01/13/26.We consider Zhongsheng (rated Baa2/BBB/BBB by Moody’s/S&amp;P/Fitch) a solid IG credit with leading market position and adequate liquidity profile.Zhongsheng experienced lower car sales and weaker profit margin over the past 2 years. 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.

CMBI Fixed Income - Zhongsheng: A Shorter-Dated Consumption Plays

China

Zhongsheng Group is a leading national automobile dealership group in China, specializing in the sale of new and used luxury and mid-to-high-end automobiles, including brands like Mercedes-Benz, Lexus, and Audi. The company also provides comprehensive after-sales services, such as repair, maintenance, spare parts, accessories, and related auto finance and insurance services. It was founded in 1998 and is headquartered in Dalian, China.

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Zhongsheng (881 HK)

CMBI Fixed Income - ZHOSHK: Credit Profile Remains Solid Under a Challenging Operating Environment

Zhongsheng (rated Baa2/BBB/BBB by Moody’s/S&P/Fitch)’s 1H25 operating performance continued to be dragged by the weak new car sales and the...

CMB International

CMBI Fixed Income - Zhongsheng: A Shorter-Dated Consumption Plays

Initiate buy recommendations on ZHOSHK’25 (CB) and ‘26 We initiate the coverage on Zhongsheng and buy recommendations on ZHOSHK 0 05/21/25 (CB) and...

CMB International

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