The Zhitong Finance App learned that Meidong Auto (01268) fell more than 4%. As of press release, it fell 4.64% to HK$1398, with a turnover of HK$9.676 million.

A recent CMB International research report pointed out that Meidong Auto's Porsche gross margin for the second half of 2022 was historically low, and BMW was also at an all-time low. Both were significantly lower than their peers. This is rare in the history of East America. From a financial point of view, the effect of the star-chasing integration also appears to have fallen far short of the bank's expectations.

Furthermore, it is expected that the dealer model will continue for a long time, but now, unlike in the past, brands operated by luxury car dealers have indeed been impacted by electric vehicles, and the difficult electrification transformation of traditional luxury brands will bring uncertainty to their dealers' profits, which may affect the upper limit of their valuations. The bank set a new target price of HK$17 and downgraded the rating to “hold”.