The Zhitong Finance App learned that UBS released a research report saying that maintaining the “neutral” rating of Yongda Auto (03669) is expected to expand month-on-month and continue until the second half of this year. At the same time, the profit forecast for this year and next year was lowered by 7%/9%, and the target price was lowered from HK$7 to HK$5.25.

The bank said that it is concerned about the company's new car profit margin performance, but it doesn't think its profit margin can rise significantly in the second half of this year and next year, and predicts that the company's profit margin for new cars will fall from 3.5% last year to 2.2% this year and 2.4% next year, respectively, mainly due to further expansion in retail discounts for Porsche and BMW.