JP Morgan: Upgrades YONGDA AUTO (03669) to "Neutral" with target price raised to 1.9 Hong Kong dollars.

JPMorgan has released a research report stating that it expects the gross profit margin of new car sales related to YONGDA AUTO (03669) and Huawei products to reach 4% to 4.5%. It has raised the company's profit forecast for 2025 to 2026 by 18% to 20% to reflect the improvement in fundamentals, and has upgraded the rating from "underweight" to "neutral", with the target price raised from 1.1 Hong Kong dollars to 1.9 Hong Kong dollars. The report stated that YONGDA AUTO management explained measures for new energy electric vehicles, especially deepening cooperation with Huawei's HarmonyOS Smart Car (HIMA) and expanding the distribution network of new energy electric vehicles related to Huawei further next year. The bank welcomes the cooperation between the company and Huawei, believing that it can help improve Yongda's new car sales, after-sales service, and gross profit margin from new car sales.