GLONGHUI, September 21 | Morgan Stanley reported that although luxury car dealers expect OEMs to stabilize retail prices by cutting supply from April 2023, some data shows that only Porsche has cut supply to the Chinese market since June. The monthly sales volume of BMW, Mercedes-Benz, Audi, and Ling Zhi (the four brands collectively known as BBAL) has remained at a high level since the beginning of the year, while Porsche's retail sales volume in China in July and August decreased by more than 40% year-on-year. Porsche dealers' profit margins for new cars have improved slightly. According to the report, citing channel sources, the brand has cut its sales target in the mainland in 2023, from over 90,000 units to 82,000 units, and below 80,000 units in 2024. Due to reduced supply, Porsche sales discounts began to narrow, and profit margins for new cars began to improve in August, but still by a small margin. Damo expects that Porsche will be the main contributor to dealers' new car profits in the second half of the year. On the other hand, it is expected that BBAL's profit margin pressure on new cars will continue in the second half of the year, that is, demand will not improve, and supply will not decrease. Therefore, the profit of new cars from Meidong Auto and Yongda Motor will depend on Porsche dealers.