Phoenix New Media Hong Kong stock | Credit Suisse issued a research report that Yongda Motor Co., Ltd. is happy, and it is expected that the net profit in 2021 will increase by not less than 50% compared with the same period last year, which is roughly in line with market expectations. It is worth noting that the company expects fourth-quarter net profit to grow by no less than 3% year-on-year. The company attributed the performance growth to the following factors: (1) the increase in new car sales and the increase in new car gross profit margin; (2) the rapid growth of after-sales service revenue; and (3) the rapid growth of used car business.

Credit Suisse attributed the increase in fourth-quarter net profit mainly to improved profit margins on new car sales. Looking ahead, the industry is expected to achieve a 15% year-on-year increase in net profit in 2022. Credit Suisse expects gross margins for luxury brand new cars to reach 3.2 per cent for the whole of 2022, down 1 percentage point from 4.2 per cent expected in the second half of 2021, mainly based on cuts in official discounts by carmakers, an increase in retail price discounts and a rise in dealer inventories.

Credit Suisse raised its profit forecast for 2021 by 5.8%, maintaining its outperformance rating, with a target price of HK $19.