According to the Futu Securities App, Meidong Auto (01268) fell by more than 3%, and as of press time, it has fallen by 3.27%, to HKD 2.05, with a turnover of HKD 11.3853 million.

CMB International believes that the fierce competition in the domestic market has become a consensus, and the bottom time of the industry cycle may be longer than expected. According to the bank's statistics, more than 200 new cars may be launched in the Chinese market this year, far higher than the previous years' 130-150 models, of which about 80% are electric vehicles. The intensive launch of new products has led to a decline in the recognition of new cars. At the same time, the product cycle has also been shortened from the previous 5-7 years to less than 1-2 years. The sustainability of auto sales and profits of car companies has declined significantly, and the long-term visibility has been significantly reduced. This has led investors to focus more on the short-term profitability of enterprises, and their preferences for car companies have also quickly shifted with changes in terminal competition trends.

Cui Dongshu stated that in the first four months of this year, the auto industry performed well in production and sales under a lower base, but due to competitive pressures, profits mainly relied on exports and high-end luxury cars, and the survival pressure of some companies has increased. He also mentioned that domestic effective demand is still insufficient, the external environment is still complex and severe, profits from gasoline cars are shrinking rapidly, and new energy vehicles have high growth but large losses. Therefore, under stable production of automobiles and active stabilization of gasoline car consumption by the central and local governments, the overall situation of the auto industry is still stable and improving.