HK Stock Market Move | YONGDA AUTO (03669) rose more than 5% against the market trend, with a rich new energy brand authorization in hand. The focus is on investing in Huawei HiCar, which is expected to bring additional profits.

YONGDA AUTO (03669) surged more than 5% against the trend, rising 5.49% to HK$1.92 by the end of trading, with a turnover of HK$26.3391 million. On the news front, CICC released a research report stating that according to the company's interim report, in the first half of this year, the company owned a Xingjiang Lixin Energy sales or maintenance center network with brands including Huawei HiSelect (Wenjie, etc.), Xiaomi, Jike, Smart, Xiaopeng, Zhiji, etc. The new energy brand management network has 36 locations, accounting for approximately 16% of the company's total network, with a total of 14,467 new energy vehicles sold, accounting for 17% of total new car sales, leading in the automobile dealership industry. In addition, the company has a rich token authorization in hand, and the bank expects the company's existing channel authorization to accelerate its opening by the end of the year, with the proportion of the company's new energy stores expected to reach around 20%, bringing a comprehensive renewal and upgrade to the company's overall brand structure. Furthermore, Yongda has cooperated with Huawei HiSelect early on and has already opened multiple AITO and Hongmeng Smart Travel network locations. According to the existing store authorizations and construction situation, CICC expects that by 1Q25, the company's Huawei stores will reach about 30. The company has made it clear that brands like Huawei HiSelect are the focus of its efforts and investments, with cash reserves of around 1.6 billion yuan at the end of the first half of this year, and a continuous decrease in the asset-liability ratio to 52.8% year-on-year, providing a good foundation for the company's new energy transformation. Taking the example of the existing Shanghai Zhangjiang Hongmeng Smart Travel store, the store is an authorized user center, offering multiple services including new car sales, delivery center, after-sales, etc., and is expected to bring multiple profit increments to the company.