Citigroup's research report pointed out that considering the weak macroeconomic situation and the increasing penetration of new energy vehicles putting pressure on sales of internal combustion engine vehicles, it has lowered the profit forecast for Meidong Auto and Zhongsheng Hldg. The first choice is Zhongsheng, followed by Meidong. Citigroup expects Zhongsheng's revenue for the years 2021 to 2026 to reach 176.4 billion yuan, 178.8 billion yuan, and 180.9 billion yuan, respectively, and the net profit forecast to be 3.05 billion yuan, 4.24 billion yuan, and 5.6 billion yuan. The target price has been lowered from HKD 22.4 to HKD 15.59, and the "buy" rating is maintained. The company recorded a free cash flow of 1.57 billion yuan in the first half of this year, and the dividend yield for this year is expected to be 5%.

As for Meidong Auto, the bank has lowered its revenue forecast for this year and next year by 18% to 22%, to 22.3 billion yuan to 22.6 billion yuan, and expects a loss of 0.47 billion yuan this year and a profit of 0.233 billion yuan next year. The revenue and net profit forecast for 2026 are 23 billion yuan and 0.492 billion yuan, respectively, mainly due to the average selling price and gross margin decline in new car sales, especially for Porsche and BMW, which are affected by the weak macroeconomic demand. The target price has been cut from HKD 8.2 to HKD 2.4, and the "buy" rating is maintained. The company recorded a free cash flow of 0.502 billion yuan in the first half of this year.