Changes in Hong Kong stocks | Yongda Auto (03669) rose nearly 5% of its existing network and licensing to enrich Huawei Smart Choice, which may bring important profit increases to the company

The Zhitong Finance App learned that Yongda Auto (03669) rose nearly 5%. As of press release, it had risen 4.95% to HK$1.9, with a turnover of HK$14.49,500.

According to a research report released by CICC, according to the company's interim report, 1H24 has independent new energy sales or maintenance center outlets, including Huawei Smart Choice (Quanjie, etc.), Xiaomi, Extreme Krypton, Smart, Xiaopeng, Zhiji, etc., and has 36 new energy brand operating outlets, accounting for about 16% of the company's total sales. In total, it sells 14,467 new energy units, accounting for 17% of total new vehicle sales, leading the car dealer industry. In addition, the company has extensive licensing. It is expected that the company's existing channel licensing may be accelerated. By the end of the year, the company's share of new energy stores is expected to reach about 20%, bringing a comprehensive renewal and upgrade to the company's overall brand structure.

According to the bank, Yongda cooperated with Huawei Smart Choice earlier. Currently, it has opened a number of AITO and Hongmeng Zhixing outlets. According to existing store licenses and ongoing construction, the company's Huawei stores are expected to reach around 30 by 1Q25. The company has now made it clear that brands such as Huawei Smart Choice are the key driving force and investment direction. 1H24 still had about 1.6 billion yuan in cash at the end of the period, and the balance ratio of 52.8% continued to decline year on year. It is believed that the company's current capital reserves and financial situation will provide a good foundation for the company's new energy transformation. Take the company's existing Zhangjiang Hongmeng Zhixing store in Shanghai as an example. The store is an authorized user center and includes various businesses such as new car sales, delivery center, and after-sales service, which is expected to bring multi-dimensional profit growth to the company.