HK Stock Market Move | Yongda Auto (03669) rose more than 6%, the company is expanding its sales network for new energy vehicles, institutions believe that its fundamentals are improving.

YONGDA AUTO (03669) rose more than 6%, up 6.64% to HK$2.73 as of the time of publication, with a turnover of HK$20.1576 million. In terms of news, Yongda Group previously stated that it is expected to increase its number of Huawei stores to 15/30 by the end of 2024/first quarter of 2025, providing favorable conditions for revenue and profit growth next year. Morgan Stanley previously pointed out that Yongda Auto's deepening cooperation with Huawei, especially in the field of HarmonyOS intelligent travel (HIMA), will further expand its new energy vehicle (NEV) sales network. It is expected that by 2025, Huawei-related NEV sales outlets will account for 30% of its total distribution network. The bank believes that Yongda Auto's fundamentals are improving, and its cooperation with Huawei will bring new growth momentum. It recommends investors to pay attention to the progress and market performance of its cooperation with Huawei. In addition, Sinolink International previously pointed out that the Ministry of Commerce stated earlier that it will continue to implement the subsidy policies and series of supporting policies that have been introduced, and will plan ahead for the 2025 policy of replacing old cars with new ones to stabilize market expectations and continue to improve policies related to automobiles to promote safe and convenient transactions for second-hand cars. The subsequent details of related policies will be a catalyst for stock prices; the group's key brand Lixin Energy is expected to continue to perform well in December sales/delivery data, and the potential release of new car models by Xiaomi as early as next year could also be a potential catalyst for stock prices.