The Zhitong Finance App learned that Daimo released a research report saying that due to the epidemic, sales discounts for Chinese car dealers increased in the second half of 2022, but indicated that after-sales service benefited from economic recovery after optimization of prevention and control policies. It is expected that this will be the main driving force for this year's growth.The industry favors Zhongsheng Holdings (00881) and Yongda Auto (03669).

The bank expects that Zhongsheng's extended maintenance insurance products will drive a strong recovery in after-sales service this year, while Yongda's after-sales service may resume due to last year's low base. Meanwhile, Zhongsheng and Yongda's 2022 net profit forecasts were lowered by 18%/15% to $6752 and $1,481 million respectively to reflect the impact of the epidemic in the fourth quarter of last year.

Furthermore,Meidong Motors (01268)After-sales service revenue accounts for relatively little. Also due to the pandemic, the company's 2022 net profit forecast was lowered by 22% to $725 million, but the 2023-24 net profit forecast was raised by 4%/11% to $1,225 million and $1,481 million, respectively, to reflect the improved product portfolio leading to better profit margins for new Porsche cars. As forGuanghui Baoxin (01293)Believing that it is less efficient than other BMW dealers, the net profit forecast for 2022 was lowered from a profit of 713 million yuan to a loss of 632 million yuan.