HK Stock Market Move | ZHONGSHENG HLDG (00881) rises by over 7% again, management expects new car market to see dawn, company's new energy business progressing smoothly.

ZHONGSHENG HLDG (00881) rose by more than 7%, up 7.1% to HK$17.96 as of the time of writing, with a trading volume of HK$2.14 billion. On the news front, a research report from CMSC International pointed out that in the first half of the year, ZHONGSHENG HLDG's net profit attributable to shareholders was 1.011 billion RMB, which was lower than the market's consensus estimate by about 50%, mainly due to the pressure on the profitability of new and used cars. Among them, the gross profit margin of new cars decreased significantly due to the impact of the pace of manufacturer subsidies. ZHONGSHENG HLDG's management believes that the new car market is about to see the light at the end of the tunnel, possibly bottoming out or even reversing, as a result of continued consolidation of distribution channels leading to market share concentration and strong anti-internal competition policies conducive to stabilizing car sales prices. In addition, the company's core pillar of steady growth in after-sales and smooth progress in new energy business maintains a "hold" rating. Furthermore, the China Federation of Industrial and Commercial Enterprises Automobile Dealers Association released its second quarter report, showing that the cashing period for rebates from car brands has been shortened. For fixed rebates, the main cashing period for 25 brands does not exceed 30 days, while for 15 brands, it does not exceed 60 days; for non-fixed rebates, the main cashing period for 18 brands does not exceed 30 days, and for 16 brands, it does not exceed 60 days.