HK Stock Market Move | Zhongsheng Holding (00881) rose by more than 5%. The company signed a preliminary agreement with Chongqing Sokon Industry Group Stock. Citigroup raised the company's performance forecast.

ZHONGSHENG HLDG (00881) surged more than 5%, rising 3.74% to 17.76 Hong Kong dollars as of the time of writing, with a turnover of 1.98 billion Hong Kong dollars. On the news front, according to official information from ZHONGSHENG HLDG, the company has signed a preliminary agreement with Chongqing Sokon Industry Group Stock, agreeing to further negotiate on the distribution of the latter's new energy vehicles. Zhongsheng stated that besides the mentioned business opportunity, they are not aware of any reasons that have caused the recent increase in the company's stock price and trading volume. Citigroup released a report stating that considering the new data of AITO brand selling 200 cars per month per store, compared to the bank's forecast of 50 cars, they have raised their revenue forecast for ZHONGSHENG HLDG for 2025 and 2026 by 10% and 18% respectively to 206.6 billion yuan and 231.5 billion yuan, and net profit forecast by 25% and 24% to 5.79 billion yuan and 8.35 billion yuan respectively, indicating that the company is embracing Chinese brands to optimize investment returns. Citigroup also mentioned that they have applied the same 2026 P/E ratio of 6 times for Zhongsheng and adjusted the target price from 18.69 Hong Kong dollars to 23.25 Hong Kong dollars, maintaining the stock as a preferred choice in the distribution industry with a "buy" rating.