HK Stock Market Move | YONGDA AUTO (03669) rises by more than 5% again, JP Morgan optimistic about its cooperation prospects with Huawei, accelerating the transformation of its new energy vehicle business.

YONGDA AUTO (03669) rose by more than 5%, reaching a 5.29% increase as of press time, with a price of 1.99 Hong Kong dollar and a turnover of 2004.71 million Hong Kong dollars. JP Morgan released a research report stating that YONGDA AUTO management explained their measures for new energy electric vehicles, especially deepening cooperation with Huawei's HarmonyOS Smart Travel (HIMA) and further expanding the distribution network for new energy electric vehicles related to Huawei next year. The bank welcomes the cooperation between the company and Huawei, believing that it can help increase Yongda's new car sales, after-sales service, and new car sales gross profit. It is expected that the gross profit margin of YONGDA AUTO's new car sales related to Huawei products will reach 4% to 4.5%, and the bank adjusted the company's profit forecast for 2025 to 2026 by 18% to 20% to reflect the improvement in fundamentals. China International Capital Corporation believes that to accelerate the transformation of the new energy automobile business, YONGDA AUTO plans to expand the number of new energy automobile stores to 40 by the end of this year, accounting for approximately 20% of the total sales network, and further increase this ratio to 30-35% next year, with most of the stores being adjusted from lower-profit or weaker traditional brand stores. The bank also pointed out that HarmonyOS Smart Travel's brands are a key new energy automobile brand for the group, planning to open at least 15 HarmonyOS Smart Travel dealerships by the end of this year, and expanding to at least 30 in the first quarter of next year. In addition to cooperation with HarmonyOS Smart Travel, Jike also is an important new energy automobile brand actively developed by the group.