China Merchants Securities International: Maintains a "buy" rating for Zero Run Car (09863.HK), Q4 profit may be more resilient.

According to the Zhifin APP, CMB International released a research report stating that Zero Run Automobile (09863.HK) maintained a stable profitability in the third quarter of the automotive business. The revenue for the quarter increased by 37% to 19.5 billion yuan (5% higher than the bank's previous forecast), mainly due to the higher-than-expected average selling price. The gross profit margin for the quarter increased by 0.9 percentage points to 14.5% compared to the previous quarter. The total of sales, management, and R&D expenses decreased by 1.8 percentage points to 14.3% compared to the previous month, which is basically in line with expectations. The net profit for the quarter remained at 1.5 billion yuan, mainly due to factors related to non-automotive businesses.