The Zhitong Finance App learned that Credit Suisse released a research report stating that it maintained the “outperform the market” rating of Yongda Auto (03669) and lowered the earnings measurement per share in 2022-24 by 7.1% to 19%. It is believed that the decline in earnings in the fourth quarter was due to rising retail price discounts for BMW and Porsche, which led to a decline in profit margins for new cars. Considering that profit margins for new cars were weaker than expected, the target price was raised from HK$7 to HK$8. The company initially announced that net profit for the full year of 2022 would fall no more than 43% year-on-year to RMB 1,414 million, falling short of market expectations. The Group attributed the decline in profit to lower gross margin on new vehicles, lower sales of new vehicles, and lower after-sales service revenue.