GUOTAI HAITONG SECURITIES·2026-03-30 08:23Investment Rating - The report maintains a "Buy" rating for Zhongsheng Holdings (0881) [1][2] Core Insights - The company reported a revenue of 164.4 billion RMB in 2025, a decrease of 2.2% year-on-year, and a net loss of 1.67 billion RMB, marking a significant decline from profitability [2][10] - The growth of new force brand businesses is expected to contribute significantly to performance, supported by the company's leading position in the dealership industry [2][10] Financial Summary - Total revenue projections for 2025 are 164.4 billion RMB, with a forecasted increase to 170.0 billion RMB in 2026, representing a growth of 3.4% [4] - Gross profit is expected to rise from 88.4 billion RMB in 2025 to 112.6 billion RMB in 2026, indicating a recovery in profitability [4] - The company anticipates a return to profitability with net income projected at 2.07 billion RMB in 2026, a significant turnaround from the 2025 loss [4] Business Performance - The dealership industry is undergoing a consolidation phase, which is expected to enhance the bargaining power of leading dealers like Zhongsheng Holdings [10] - The after-sales service segment showed resilience, with active customer numbers reaching approximately 4.6 million, a 10% increase year-on-year, and after-sales revenue growing by 4.1% to 22.9 billion RMB [10] - The new force brand business is rapidly expanding, with the number of stores for the AITO brand increasing to 38, contributing positively to the company's overall profitability [10]