Impact of Output Reduction: China's auto industry is experiencing consolidation due to reduced output, with luxury car dealers likely to benefit first as small dealers face unattractive profit margins.
Earnings Projections: Morgan Stanley forecasts a 67% rebound in earnings for ZHONGSHENG HLDG in 2026, driven by improved profit margins and market share growth, while TUHU-W is expected to see a 25% CAGR in earnings from 2025 to 2027.
Target Price Adjustments: The target price for ZHONGSHENG HLDG has been raised from $15 to $21, while TUHU-W's target price increased from $20 to $23; however, YONGDA AUTO and MEIDONG AUTO saw their target prices cut.
Market Dynamics: The decline in capital expenditure demand suggests potential upside for dividend yields, indicating a shift in the market landscape favoring financially stable dealers and independent repair shops.
Wall Street analysts forecast 00881 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00881 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast 00881 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00881 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 12.350
Low
Averages
High
Current: 12.350
Low
Averages
High
JPMorgan
JPMorgan
maintain
$150
Al Analysis
2025-11-06
Reason
JPMorgan
JPMorgan
Price Target
$150
Al Analysis
2025-11-06
maintain
Reason
The analyst rating for BYD COMPANY was reaffirmed as Overweight by JPMorgan due to several key factors observed during the Tokyo Motor Show. The broker has a long-term positive outlook on the company, believing it will gradually improve after the release of its 3Q25 results. This anticipated improvement is driven by the launch of new models in 2026, successful global expansion, and a gradual enhancement in profitability expected in 4Q25 and 2026. Additionally, the stock is viewed as having a favorable risk-reward profile within the next 12 months, with a target price set at $150.
HSBC
HSBC Global Research
downgrade
$12
2025-10-09
Reason
HSBC
HSBC Global Research
Price Target
$12
2025-10-09
downgrade
Reason
The analyst rating for ZHONGSHENG HLDG (00881.HK) was kept at "Underweight" due to several factors highlighted in the HSBC Global Research report. The main reasons include:
1. Weak Luxury Car Sales: The new car business has not yet reached its lowest point, with ongoing weakness in luxury car sales.
2. Aggressive Pricing and Market Competition: There is significant price pressure from aggressive pricing strategies for new cars, particularly electric vehicles (EVs), which is intensifying market competition.
3. Impact on Used Car Segment: The influx of used cars due to China's trade-in policy is further compressing prices in the used car market.
4. Lowered Profit and Revenue Forecasts: HSBC lowered its profit forecasts for 2025 and 2026 by 43% and 38%, respectively, and reduced revenue forecasts by 12% due to a decline in sales of internal combustion engine (ICE) and luxury cars in mainland China.
5. Reduced Gross Margin Forecasts: The broker also cut its gross margin forecasts by 1.3-1.5 percentage points, indicating that price pressure is negatively affecting profit margins on new cars.
As a result of these factors, HSBC adjusted its target price for the stock from $12 to $11.8.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
