Core Viewpoint - The company's 1H25 performance fell short of expectations, with a revenue decline of 6.2% year-on-year and a significant drop in net profit by 36.0% due to increased discounts in the new car business [1] Revenue Structure and Performance - The company's total revenue for 1H25 was 77.322 billion yuan, down 6.2% year-on-year. New car sales decreased by 1.7% to 229,000 units, with revenue from new cars declining by 4.7% to 57.931 billion yuan, primarily impacted by increased terminal discounts [1] - The brand structure of new cars is being adjusted, with the AITO brand contributing an additional 11,000 units, and luxury brand sales accounting for 62.3% of total sales. Used car sales increased by 9.6% to 111,000 units, although revenue from used cars fell by 27.0% to 6.02 billion yuan due to government policies affecting older vehicles [1] - After-sales service revenue grew by 4.4% to 11.445 billion yuan, benefiting from an increase in service visits and higher average revenue per vehicle [1] Profitability and Cash Flow - The gross margin for 1H25 was 5.4%, a decrease of 0.5 percentage points year-on-year, mainly due to intensified market competition and increased losses in new car sales. The gross profit from new car sales rose by 20.0% to 2.388 billion yuan, while gross profit from used car sales plummeted by 58.4% to 257 million yuan [1] - The company maintained stable operating expense ratios, with selling and administrative expense ratios increasing by 0.3 percentage points and 0.1 percentage points to 4.4% and 1.4%, respectively. The net cash flow from operating activities reached 5.948 billion yuan, a substantial increase of 103.3% year-on-year, indicating improved operational efficiency [1] Long-term Growth and Strategic Positioning - The customer base for luxury vehicles continues to expand, with active customers reaching 4.54 million, a year-on-year increase of 15.2%. The company optimized its channel network, adding 57 dealerships and 20 service centers in the first half of the year, with 48 of these being luxury brands [2] - Looking ahead, the company anticipates stabilization in vehicle terminal prices due to increased regulatory requirements against irrational competition, alongside the launch of new generation products from German luxury brands, which may lead to business recovery [2] Profit Forecast and Valuation - Due to pressure on new car profitability, the company has revised its net profit forecasts for 2025 and 2026 down by 35.1% and 38.1% to 2.464 billion yuan and 3.080 billion yuan, respectively. The current stock price corresponds to a price-to-earnings ratio of 14.3 times for 2025 and 11.2 times for 2026 [2] - Considering the company's proactive brand matrix adjustments, it maintains an outperform rating with a target price of 18.00 HKD, reflecting a potential upside of 12.0% from the current stock price [2]

Core Viewpoint - The company is facing pressure on performance due to declining new car gross margins, leading to a downward revision of profit forecasts for 2025-2027, despite maintaining a "buy" rating based on its resilience as a leading dealership group in the industry transformation [1][2] Group 1: Financial Performance - In H1 2025, the company achieved operating revenue of 77.3 billion yuan, a year-on-year decrease of 6.2% [1] - The comprehensive income for H1 2025 was 6.054 billion yuan, down 11.8% year-on-year [1] - The net profit attributable to shareholders was 1.011 billion yuan, reflecting a significant year-on-year decline of 36.0% [1] Group 2: New Car Sales - The company sold 228,600 new cars in H1 2025, a slight decrease of 1.7% year-on-year [1] - The new car sales gross margin was negative 2.388 billion yuan, with a gross margin rate of negative 4.1%, resulting in an average loss of approximately 10,443 yuan per vehicle [1] - The AITO brand sold 11,000 new cars in H1 2025, contributing to a 0.6 percentage point increase in the group's new car gross margin rate [1] Group 3: After-Sales Service - The company generated after-sales service revenue of 11.45 billion yuan in H1 2025, representing a year-on-year increase of 4.4% [2] - The gross profit from after-sales services was 5.44 billion yuan, up 8.1% year-on-year [2] - The number of after-sales service visits increased by 1.7% year-on-year, although growth was slightly lower due to the closure of some high-performing mid-to-high-end brand dealerships [2]

Core Viewpoint - Zhongsheng Holdings (00881) reported a net profit attributable to shareholders of 1.011 billion RMB for the first half of the year, which is approximately 50% lower than market consensus expectations, primarily due to pressure on profitability from new and used cars [1] Group 1: Financial Performance - The decline in new car gross margin is significantly influenced by the timing of manufacturer subsidies [1] - The management believes that the new car market is about to see a turnaround, driven by ongoing channel consolidation and market share concentration towards leading players [1] - The company has maintained an "overweight" rating but has lowered its target price from 24 HKD to 22.3 HKD, which corresponds to a 12.8 times price-to-earnings ratio for the fiscal year 2025, aligning with historical averages [1] Group 2: Market Outlook - The brokerage firm shares the management's view that new car gross margins have likely bottomed out, citing reasons such as manufacturer subsidies being confirmed mainly in the second half of the year [1] - The implementation of anti-involution policies in the industry is expected to stabilize end-user prices in the second half of the year [1] - The company’s main brand, Mercedes-Benz, is set to launch over 30 new models in the next two years, indicating a strong product cycle and enhanced pricing resilience, which could lead to profit recovery [1] Group 3: Profit Forecast Adjustments - The brokerage has revised its profit forecasts for Zhongsheng Holdings for 2025 to 2027 down by 8%, 5%, and 4% respectively, reflecting the short-term impact of declining profit margins in new and used cars [1]

Group 1 - The Hong Kong stock market opened lower on September 2, with the Hong Kong Consumption ETF (159735) rising by 0.23% and a trading volume exceeding 15 million yuan, indicating a premium trading trend [1] - Notable stocks within the ETF include Zhongsheng Holdings and Midea Group, both rising over 4%, while Galaxy Entertainment, BYD, Pop Mart, and Miniso saw increases of over 1% [1] - The Hong Kong Consumption ETF has experienced net inflows in 8 out of the last 10 days, totaling over 110 million yuan [1] Group 2 - According to Huatai Securities, the consumption sector is witnessing structural opportunities driven by new demands, scenarios, and models, with significant growth in emotional and personalized products like trendy toys and cosmetics [2] - The integration of services and products is reshaping the "people-goods-scene" relationship, expanding consumption boundaries [2] - Domestic brands are rapidly rising due to innovative business models and channel efficiency, with a focus on categories that show potential for penetration, supply-side capabilities, and policy support [2]

Core Viewpoint - CICC has downgraded the net profit estimates for Zhongsheng Holdings (00881) for 2025 and 2026 by 35.1% and 38.1% to RMB 2.464 billion and RMB 3.08 billion respectively, due to pressure on new car profitability [1] Group 1: Financial Performance - In 1H25, the company's revenue was RMB 77.322 billion, a decrease of 6.2% year-on-year, with new car sales down 1.7% to 229,000 units and revenue from new cars down 4.7% to RMB 57.931 billion [2] - The gross profit margin for 1H25 was 5.4%, a decline of 0.5 percentage points year-on-year, primarily due to intensified market competition and increased losses in new car gross profit [3] - Operating cash flow for 1H25 reached RMB 5.948 billion, a significant increase of 103.3% year-on-year, indicating improved operational efficiency [3] Group 2: Business Segments - The after-sales service revenue increased by 4.4% year-on-year to RMB 11.445 billion, benefiting from an increase in service visits and higher average revenue per vehicle [2] - The second-hand car sales volume rose by 9.6% to 111,000 units, although revenue fell by 27.0% to RMB 6.02 billion due to government policies affecting older vehicles [2] Group 3: Strategic Outlook - The customer base for luxury vehicles continues to expand, with active customers reaching 4.54 million, a year-on-year increase of 15.2% [4] - The company is expected to benefit from a stabilization in vehicle terminal prices and the upcoming launch of new generation products from German luxury brands [4]

Core Viewpoint - The company has adjusted its net profit forecasts for 2025 and 2026 due to pressure on new car profitability, leading to a reduction of 35.1% and 38.1% respectively, with projected profits of 2.464 billion and 3.08 billion RMB [1] Group 1: Financial Performance - In the first half of 2025, the company's revenue was 77.322 billion RMB, a decrease of 6.2% year-on-year, with new car sales down by 1.7% to 229,000 units and revenue from new cars down by 4.7% to 57.931 billion RMB [2] - The company's gross profit margin for the first half of 2025 was 5.4%, a decline of 0.5 percentage points, primarily due to intensified market competition and increased losses in new car sales [3] - Operating cash flow for the first half of 2025 reached 5.948 billion RMB, a significant increase of 103.3% year-on-year, indicating improved operational efficiency [3] Group 2: Business Segments - The after-sales service revenue increased by 4.4% to 11.445 billion RMB, benefiting from an increase in service visits and higher average revenue per vehicle [2] - The company experienced a 9.6% increase in used car sales, totaling 111,000 units, although revenue from used cars fell by 27.0% to 6.02 billion RMB due to government policies affecting older vehicles [2] Group 3: Strategic Outlook - The customer base for luxury vehicles continues to expand, with active customers reaching 4.54 million, a year-on-year increase of 15.2% [4] - The company is expected to benefit from a stabilization in vehicle pricing and the launch of new models from German luxury brands, which may lead to a recovery in business [4]

Group 1 - Zhongsheng Holdings (00881) shares rose over 5%, currently up 4.57% at HKD 16.7, with a trading volume of HKD 314.83 million [1] - For the six months ending June 30, 2025, Zhongsheng Holdings reported total revenue of RMB 77.322 billion, a year-on-year decrease of 6.2% [1] - The net profit attributable to shareholders was RMB 1.011 billion, down 36% year-on-year, with basic earnings per share of RMB 0.427 [1] Group 2 - In the first half of 2025, the company sold 228,600 new vehicles, a year-on-year decrease of 1.7%, impacted by intensified competition in the new car market [2] - The gross profit from new car sales was negative RMB 2.388 billion, with a gross margin of -4.1%, resulting in an average loss of approximately RMB 10,443 per vehicle [2] - AITO brand's new car sales reached 11,000 units in the first half of 2025, contributing to a 0.6 percentage point increase in the group's new car gross margin [2]

Group 1 - Zhongsheng Holdings (00881) saw its stock rise over 5%, currently trading at HKD 16.7 with a transaction volume of HKD 314.48 million [1] - For the six months ending June 30, 2025, Zhongsheng Holdings reported total revenue of RMB 77.322 billion, a year-on-year decrease of 6.2% [1] - The company's net profit attributable to shareholders was RMB 1.011 billion, down 36% year-on-year, with basic earnings per share at RMB 0.427 [1] Group 2 - In the first half of 2025, Zhongsheng Holdings achieved after-sales service revenue of RMB 11.45 billion, an increase of 4.4% year-on-year, with after-sales service gross profit reaching RMB 5.44 billion, up 8.1% [1] - The strong financial performance was supported by 4.54 million active customers, leading to 4 million after-sales service visits, representing year-on-year growth of 15.2% and 1.7% respectively [1] Group 3 - Kaiyuan Securities reported that in the first half of 2025, the company sold 228,600 new vehicles, a decrease of 1.7% year-on-year, impacted by intensified competition in the new car market [2] - The gross profit from new car sales was negative RMB 2.388 billion, with a gross margin of -4.1%, resulting in an average loss of approximately RMB 10,443 per vehicle [2] - The AITO brand sold 11,000 new vehicles in the first half of 2025, improving the group's new car gross margin by 0.6 percentage points [2]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中升集團控股有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00881 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | 1,000,000,000,000 | HKD | | 0.0001 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | 1,000,000,000,000 | HKD | | 0.0001 | HKD | | 100,000,000 | 本月底法定/註冊股本 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4][11] Core Views - The company is experiencing pressure on new car profits, but stable contributions from after-sales services are expected to support profitability [4][5][6] - The company has undergone significant network optimization, closing 37 authorized dealerships while opening 57 new ones and 20 service centers to enhance operational efficiency [4][5] - The forecast for net profit has been revised downwards for 2025-2027 due to ongoing challenges in the luxury car sales market, with expected net profits of 27.17 billion, 36.49 billion, and 49.83 billion respectively [4][7] Financial Performance Summary - For H1 2025, the company reported revenue of 77.3 billion, a year-on-year decrease of 6.2%, and a net profit of 10.11 billion, down 36.0% year-on-year [4][5] - The company sold 228,600 new cars in H1 2025, a decrease of 1.7% year-on-year, with a negative gross margin of 4.1% on new car sales [5][6] - After-sales service revenue increased by 4.4% year-on-year to 11.45 billion, with a gross profit of 5.44 billion, reflecting a stable growth trend [6][7] Valuation Metrics - The projected earnings per share (EPS) for 2025-2027 are 1.14, 1.53, and 2.09 respectively, with corresponding price-to-earnings (P/E) ratios of 12.9, 9.6, and 7.0 [4][7] - The company's revenue is expected to stabilize and grow, with projections of 165.3 billion in 2025, 171.7 billion in 2026, and 200 billion in 2027 [7]