The Zhitong Finance App learned that Daimo released a research report saying that maintaining the “in sync with the market” rating of Meidong Auto (01268), Fa Ying Police expects profit to fall no more than 57% year on year in 2022, which means that profit for the second half of the year will fall no more than 75% to at least 158 million yuan, and the target price was lowered from HK$21 to HK$19. The bank believes that consumers are still hesitating whether to buy now and are awaiting further promotions, so it believes demand for new cars will take time to recover.

The bank pointed out that due to sales discounts exceeding expectations and one-time expenses, Meidong Auto's 2022 net profit forecast was lowered by 29% to 518 million yuan, and the 2023-24 forecast was lowered to 1,206/1,426 million yuan respectively to reflect lower than expected profit margins for new vehicles and higher acquisition-related expenses than expected. The bank currently has a wait-and-see attitude towards the company, but if demand for Porsche recovers better than expected and if the company makes further progress in the electric vehicle related business, the attitude will change to a more optimistic attitude.