CMBI's report indicates that MEIDONG AUTO has shown a rebound in new car gross margins in the second half of last year, which, along with the introduction of new HarmonyOS stores, is expected to drive earnings growth for fiscal years 2026 to 2027. Despite a decline in revenue due to lower new car selling prices, the gross margin improved significantly, leading to a net profit that exceeded previous forecasts. The broker anticipates further improvements in gross margins and net profits in the coming years, justifying a Buy rating, although the target price has been lowered.
