On June 29th, Yongda Motor was the worst performer, US East Motor fell by 5%, Guanghui Baoxin and Zhongsheng Group fell by more than 3%.
Among the car dealers it covers, the bank expects new car sales to fall by double digits year-on-year in the first half of this year on a same-store basis, but profit margins are expected to increase year-on-year, Morgan Stanley said. Morgan Stanley lowered its target price of three shares from HK $85 to HK $80, Yongda from HK $15.5 to HK $12, and East America from HK $56 to HK $36.