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HONG KONG, Apr 26, 2013 - (ACN Newswire) - On April 22, 2013, Haitong International published a research report on Yongda Auto (3669.HK). According to the report, Yongda Auto gained 2% last week, and other auto dealers stocks rallied in varying degrees. As the major auto dealers generally achieved bright performance recently, the investors' confidence towards the sector is in recovery. The continued recovery of the auto dealer sector is favorable to the ongoing growth in performance of Yongda Auto (3669.HK) in 2013. Therefore, Haitong International maintains its "Buy" rating for the Company.
The major auto dealers subsequently announced their 2012 annual results in March. The overall performance was slightly below the expectation. Therefore, the stock price of auto dealers fell sharply. Besides, Haitong International mentioned that, in its report on industry in early April, it is the weak season of auto dealers for the time being, especially in the second quarter of 2013, which will be a good entry point into the market.
Previously, the media reported that, according to China Association of Automobile Manufacturers, the sales volume of automobiles in the 1st quarter in China amounted to 54.2 million units, up 13% YoY. The news has boosted the automobile stocks to become the market focus again, significantly enlarging the trading volume.
Meanwhile, China Association of Automobile Manufacturers is planning for the long term development strategy to build China the "Powerful Nation of Automobile", with a target to have sales volume in China reaching up to 279 million units by 2020, 400 million units by 2030. The multiple positive factors are boosting the automobile stocks to rise in general.
In the past two weeks, overviewing the stock price performance of many auto dealers, the companies positioning in high-end brands were performing outstandingly. Among which, the stock price of Yongda Auto (3669.HK) rose 14% with a strong rebound. Yongda Auto (3669.HK) is distributing numerous brands, including Bentley, Porsche, BMW, Jaguar/Land, Infiniti, Volvo, Cadillac and etc., and becoming a leading professional auto dealer group in China. Among all its distributing brands, the ratio of BMW brand is the highest. The increase in sales volume of BMW cars will directly boost the overall profit to grow. According to the report by Haitong International, BMW will achieve its 2013 target of 12% sales growth, after it launches more business policies to promote car sales starting from the second quarter of 2013. Yongda Auto (3669.HK) will benefit from the sales of BMW directly.
Haitong International says the auto dealer sector has bottomed out, and another rising trend is coming. With favorable factors of domestic demand for new car continuing to increase and BWM's promotion policies in the second quarter, Yongda Auto (3669.HK) will reap the rewards. The increase in sales volume of new car is likely to boost the overall profit to increase continuously. Haitong International is positive towards the performance of Yongda Auto (3669.HK) in the future, and maintains the "Buy" rating.
Topic: Press release summary
Source: China Yongda Automobiles Services Holdings Limited
Sectors: Daily Finance, Automotive, Daily News
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From the Asia Corporate News Network
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