HK Stock Market Move | YONGDA AUTO (03669) rose nearly 5%. With a rich existing network and authorization, Huawei Smart Selection may bring important profit increment to the company.

Yongda Auto (03669) rose nearly 5%, as of the time of drafting, it rose 4.95% to 1.9 Hong Kong dollars, with a turnover of 14.4995 million Hong Kong dollars. CICC released a research report pointing out that according to the company's interim report, in 1H24, the company has Xinjiang Lixin Energy sales or maintenance centers with brands including Huawei Wisdom (Questions about the world, etc.), Xiaomi, Jike, Smart, Xiaopeng, Zhiji, etc., with a total of 36 new energy brand operation centers, accounting for about 16% of the company's total centers, selling a total of 14,467 new energy vehicles, accounting for 17% of the total new vehicle sales, leading in the automobile dealership industry. In addition, the company has rich authorization on hand, and it is expected that the company's existing channel authorizations will accelerate the opening of new businesses, and by the end of the year, the proportion of the company's new energy stores is expected to reach around 20%, bringing a comprehensive renewal and upgrade to the company's overall brand structure. The report continues to point out that Yongda has cooperated with Huawei Wisdom relatively early, and has opened multiple AITO and Hongmeng Wisdom Road centers. Based on the current store authorizations and under construction, it is estimated that by 1Q25, the company's Huawei stores will reach around 30. The company has clearly identified brands such as Huawei Wisdom as the key focus and investment direction. At the end of 1H24, the company still had around 1.6 billion yuan in cash on hand, and the asset-liability ratio continued to decline to 52.8% year-on-year. It is believed that the company's existing financial reserves and financial conditions will provide a good foundation for the company's new energy transformation. Taking the company's existing Shanghai Zhangjiang Hongmeng Wisdom Road store as an example, the store serves as an authorized user center, including new car sales, delivery centers, after-sales services, etc., and is expected to bring multi-dimensional profit increment to the company.