HK Stock Market Move | YONGDA AUTO (03669) once fell more than 12% and was removed from the Hang Seng Composite Index. Institutions predict that it may also be removed from the Hong Kong stock connect.

YONGDA AUTO (03669) fell more than 12% at one point, and as of the latest update, it was down 8.95% to 2.34 Hong Kong dollars, with a turnover of 60.92 million Hong Kong dollars. On the news front, after the market closed on February 21st, the Hang Seng Index Company announced the quarterly review results of the Hang Seng Index series as of December 31, 2024, with the adjustments officially taking effect from March 10, 2025. YONGDA AUTO was removed from the Hang Seng Composite Index component stocks. Institutions expect it may be facing expulsion from the Hong Kong stock connect. UBS previously maintained a "sell" rating on YONGDA AUTO and lowered its earnings per share forecast for 2024-2026 by 27% to 38% to reflect greater than expected pressure on new car profits. The UBS report quoted YONGDA AUTO management as saying that new car sales volume fell by about 8% year-on-year last year, mainly due to the drag from BMW and Porsche. New car profits in the second half of last year declined compared to the first half, as the expansion of retail discounts and the maintenance of gross margins for new car sales and related services had a basic impact. As for the impact of store closures, after-sales service revenue remained flat year-on-year. During the period, the company's sales of used cars fell by 20% year-on-year, but the gross margin remained at the 5% to 6% level.