Core Viewpoint - Bank of America Securities has downgraded its revenue forecast for Beijing Automotive (01958) for the years 2023 to 2027 by 3% to 4%, along with a reduction in gross margin forecast by 0.5 to 1.1 percentage points and a profit forecast cut by 12% to 27%, with the target price lowered from HKD 2.1 to HKD 2, maintaining an underperform rating [1] Group 1 - In Q2, Beijing Automotive's revenue decreased by 16% year-on-year to RMB 40 billion [1] - The net EBIT margin for Q2 was negative 1.2%, a decline of 7.1 percentage points year-on-year [1] - The estimated quarterly net profit for the joint venture with Mercedes-Benz fell by 43% year-on-year, primarily due to an 18% drop in sales [1] Group 2 - The company reported a quarterly net loss of RMB 569 million, compared to a net profit of RMB 943 million in the same period last year [1] - For the first half of the year, total sales decreased by 13% year-on-year to RMB 82.4 billion [1] - The gross margin fell by 4.2 percentage points to 14.5%, with equity investment losses of RMB 34 million, an improvement from a loss of RMB 504 million in the same period last year [1] - The net profit for the first half of the year dropped by 82% year-on-year to RMB 360 million, aligning with the bank's full-year forecast of RMB 1.6 billion [1]