HK Stock Market Move | YONGDA AUTO (03669) rises more than 10% again, company continues to repurchase shares for two consecutive days, focusing on the sales of new energy vehicles in recent years.

YONGDA AUTO (03669) rose by more than 10% again, as of the time of publication, up 10.22% to HK$2.48, with a turnover of HK$50.6285 million. In terms of news, Yongda Group previously stated that it is expected that by the end of 2024/first quarter of 2025, the number of Huawei stores under its operation will increase to 15/30, providing favorable conditions for income and profit growth. Sinotrust International previously pointed out that the company has focused its development on brands with core product competitiveness and high visibility, successfully undertaking brands such as Huawei (AITO and Hongmeng Zhixing), Xiaomi, and ZEKR, of which it had already cooperated with Huawei Select in 2021, currently operating a total of 7 stores with AITO (3) and Hongmeng Zhixing (4) outlets. Additionally, YONGDA AUTO has been conducting buybacks for two consecutive days. The latest announcement shows that on January 15, the company repurchased 2 million shares for HK$4.35 million. According to the buyback authorization resolution, the company can repurchase a total of 193 million shares, and has repurchased 36.69 million shares, accounting for 1.9036% of the issued shares at the time of the buyback authorization resolution. Citigroup recently stated that it expects YONGDA AUTO's new car sales in the fourth quarter of last year to increase by 30% compared to the previous quarter. It is also estimated that the gross profit margin for after-sales services in the second half of last year will be similar to that in the first half. The bank predicts that the company's overall second-hand car sales volume last year decreased by 20% compared to the previous year, mainly due to the pressure on new car retail prices.