[ET Net News Agency, 13 August 2019] HSBC Global Research lifted its target price for
Zhongsheng Group Holdings (00881) to HK$21 from HK$20 and maintained its "hold" rating.
The research house said Zhongsheng's results slightly beat HSBC estimates. The company
added net 25 new stores in 1H, of which eight stores are Mercedes Benz (MB) commercial
vehicle dealerships. Total capex for 1H was only RMB924m, which was a big drop from
RMB1,655m in 1H 2018.
HSBC believes this is mainly due to lower acquisition costs of MB commercial vehicles.
Free cash flow improved significantly driven by a lower inventory level and lower capex in
1H. However, the growth of aftersales and commission income slowed down.
HSBC raised its adjusted net profit estimates by 7%, 9% and 8% in 2019-21. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00881 ZHONGSHENG HLDG
Nominal 
14.500 +0.880 (+6.461%) Research Report
13/08/2019 16:36
{I-bank focus}HSBC lifts Zhongsheng (00881) to HK$21; "hold"
| Remark: | Real time quote last updated: 26/04/2024 14:44 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |