How do institutions view the role of "Huawei Smart Selection Car" in the automotive sales industry? Why has "Huawei Smart Selection Car" sparked market discussions?
Caixin reporter, November 11th (Editor Hu Jiarong), today most of the Hong Kong stocks in the automotive dealer concept surged. As of the deadline for submission,$ZHENGTONGAUTO (01728.HK)$、$ZHONGSHENG HLDG (00881.HK)$、$MEIDONG AUTO (01268.HK)$rose by 44.07%, 21.41%, and 12.40% respectively.
In recent news, a blogger on Weibo claimed that Zhongsheng Group has fully embraced new energy by securing authorization for 50 (some say 48) "Huawei Smart Selection Car".
According to publicly available information, Zhongsheng Group is one of China's leading national automotive dealership groups, focusing on the operation of a portfolio of luxury and mid- to high-end brands, including Mercedes-Benz, Lexus, Audi, BMW, volvo ab unsponsored adr class b, Jaguar Land Rover, Toyota, Nissan, Honda and other brands. The group has an extensive national 4S dealership network covering economically developed regions and cities.
Stimulated by this news, Zhongsheng Hldg continued to surge with large trading volume. After a nearly 26% surge last Friday, the company rose again today, with the intraday increase once approaching 30%; Zhongsheng Hldg paused trading in the afternoon, rising 21.41% before the suspension.
In addition, Bank of America Securities also pointed out that an AITO store will generate a pure profit of 20 million yuan for Zhongsheng and indicated that the company aims to have nearly 1,000 sales channels. The bank predicts that the new AITO store will contribute 15% to the company's profit in 2025, demonstrating the company's determination and potential in embracing the era of electric vehicles. The bank raised its net income estimates for 2025 and 2026 by 15% and 16% respectively, raised the target price from 13 Hong Kong dollars to 22 Hong Kong dollars, and reiterated a "buy" rating.
Why has the hot topic of Huawei Smart Selection Car sparked market discussion?
In fact, the popularity of Huawei Smart Selection Car can be attributed to several key factors.
Firstly, Huawei's brand strength in the automobile market has been recognized, especially the hot sales of the high-end model WENJIE M9, which validates Huawei's ability to compete with BBA for market share.
Secondly, Huawei's continuous investment and technological innovation in smart automobile solutions have kept it in a leading position in the industry. Huawei's car BU R&D team has reached a scale of 7,000 people, with accumulated R&D investment exceeding 30 billion RMB, providing solid technological support for the Smart Selection Car business.
Subsequently, Huawei leverages its marketing and product experience accumulated in the terminal, mobile, and consumer electronics business sectors to empower cooperating auto manufacturers, increasing retail revenue for Huawei stores. Huawei's extensive channel layout and marketing capabilities provide strong market promotion for the Smart Selection Car business.
Editor / jayden