Zhitong Finance APP learned that Credit Suisse released a research report saying that it maintained the "outperform the market" rating of Zhongsheng Holdings (00881), taking into account that the gross profit of new cars was better, and raised the forecast for 2021-23 by 0.8%-1.8%, and the target price rose from HK$90 to HK$91.
Lexus' retail sales in China rose 43% month-on-month to 123.66 million units in November after a series of declines from August to October due to the shortage of parts due to the epidemic, mainly due to the improvement of the supply chain. Looking ahead, Toyota announced that its 14 plants in Japan, which produce Lexus vehicles and supply them to the Chinese market, are operational for the first time this month.
The bank said retail discounts for the Lexus brand fell further in November, down 0.6 percentage points month-on-month, while gross margin on new vehicles rose due to very low levels of dealer inventory retail. Lexus brand distributors are expected to improve their gross profit and sales in the fourth quarter of this year. The bank mentioned that retail sales of two Toyota brand joint ventures (GAC Toyota and FAW Toyota) further improved in November, up 21% month-on-month. As the largest distributor group of the Lexus brand and toyota brands in China, Zhongsheng is expected to benefit from sales growth in November and December.
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