HK Stock Market Move | ZHONGSHENG HLDG (00881) surged over 9% in the afternoon, signing a preliminary agreement with Chongqing Sokon Industry Group Stock, receiving positive evaluations from multiple major banks.

ZHONGSHENG HLDG (00881) rose more than 9% in the afternoon, with a 9.11% increase to HK$18.68 by the time of publication, with a turnover of HK$566 million. On the news front, ZHONGSHENG HLDG announced that it has signed a preliminary agreement with Chongqing Sokon Industry Group Stock to further discuss cooperating in the distribution of the latter's new energy vehicles. The company stated that besides the mentioned commercial opportunities, it is not aware of any reasons that have led to the recent increase in its stock price and trading volume. Daiwa Securities indicated that with the new distribution model, they expect Zhongsheng to increase new car sales volume from AITO, as well as bring more traffic to its after-sales service, insurance, and financing products. CICC expressed optimism about the growth space opened up by the cooperation with Chongqing Sokon Industry Group Stock, as well as the potential profit boost in the future. Citigroup has raised its revenue forecast for Zhongsheng in 2025 and 2026 by 10% and 18% respectively to RMB 206.6 billion and RMB 231.5 billion, and increased net profit forecast by 25% and 24% to RMB 5.79 billion and RMB 8.35 billion, pointing out that the company is embracing Chinese brands to optimize investment returns.