[ET Net News Agency, 10 January 2018] Citi Research initiated coverage on Zhongsheng
Group Holdings (ZSG)(00881) with a "buy" rating, and target price of HK$21.41.
It forecast Zhongsheng to deliver a 2018-20 EPS CAGR of 17% on (1) new car sales mix
remaining balanced with premium brands contributing 49% of total volume in 2020; (2)
after-sales GP growing at a CAGR of 10%.
Citi said Zhongsheng's 2018 SSS should top its peers at 1,326 units, contributed by Audi
and middle-market brands. Even though still skewing more towards middle-market brands,
while premium brands PV sales will account for 49% of the total by 2020, 6ppts higher than
in 2017. (KL)