Car dealers generally declined today. As of press release, MeiDong Auto (01268) fell 4.6% to HK$4.77; Zhongsheng Holdings (00881) fell 3.61% to HK$18.7; Guanghui Baoxin (01293) fell 2.65% to HK$0.22; and Yongda Auto (03669) fell 1.26% to HK$3.12.
The Zhitong Finance app learned that car dealers generally declined today. As of press release, MeiDong Auto (01268) fell 4.6% to HK$4.77; Zhongsheng Holdings (00881) fell 3.61% to HK$18.7; Guanghui Baoxin (01293) fell 2.65% to HK$0.22; and Yongda Auto (03669) fell 1.26% to HK$3.12.
According to the news, Xiao Zhengsan, vice president and secretary general of the China Automobile Dealers Association, recently stated that during the Guangzhou Auto Show, major manufacturers began a “hundred meter sprint” before the end of the year. The automobile distribution sector has entered a period of deep adjustment. Dealers have high inventories and are forced to exchange price for quantity. This increase in sales comes at the cost of abandoning benefits or profits.
Bank of China Securities recently stated that in January-September, the automobile industry's revenue increased year on year, while profit declined year on year. The auto market performed well in October, with sales volume rising steadily year on year. We expect revenue growth to improve, but due to price wars among a large number of manufacturers, profit growth is under pressure in the short term. As the auto market continues to pick up in the future, the growth rate of automobile companies' operating income and total profit is expected to increase.