---
title: "Morgan Stanley expects the recovery of mainland automobile dealers' profits to be slower than anticipated, lowering the earnings forecast and target price for YONGDA AUTO and MEIDONG AUTO"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/282127072.md"
description: "Morgan Stanley released a report stating that the profit recovery of mainland automobile dealers will be slower than expected, mainly due to the lack of new electric vehicle models and high oil prices affecting consumer preferences. YONGDA AUTO's profit forecasts for 2026 and 2027 have been lowered by 42% to 47%, with the target price reduced from RMB 1.9 to RMB 1.3; MEIDONG AUTO's forecast has been cut by 11% to 12%, with the target price lowered from RMB 1.7 to RMB 1.5, maintaining a \"market perform\" rating"
datetime: "2026-04-09T02:58:27.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/282127072.md)
  - [en](https://longbridge.com/en/news/282127072.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/282127072.md)
---

# Morgan Stanley expects the recovery of mainland automobile dealers' profits to be slower than anticipated, lowering the earnings forecast and target price for YONGDA AUTO and MEIDONG AUTO

Morgan Stanley released a research report, still believing that mainland automobile dealers will see a recovery in profits this year, benefiting from increased sales profits of new cars from Huawei and resilient automotive repair service businesses. However, the recovery speed will be slower than expected due to the lack of new models of international brand electric vehicles and consumers' reduced preference for fuel vehicles amid high oil prices.

The bank has lowered its profit forecasts for YONGDA AUTO (03669.HK) for 2026 and 2027 by 42% to 47%, and has reduced its forecast for MEIDONG AUTO (01268.HK) by 11% to 12%, reflecting that new car profits and commission income are lower than expected. As a result, the target price for YONGDA AUTO has been lowered from HKD 1.9 to HKD 1.3, while MEIDONG AUTO's target price has been reduced from HKD 1.7 to HKD 1.5, both maintaining a "Market Perform" rating. The bank had previously lowered the target price for Zhongsheng Holdings (00881.HK) to HKD 10.5, with a rating of "Overweight."

### Related Stocks

- [516110.CN](https://longbridge.com/en/quote/516110.CN.md)
- [03669.HK](https://longbridge.com/en/quote/03669.HK.md)
- [159565.CN](https://longbridge.com/en/quote/159565.CN.md)
- [01268.HK](https://longbridge.com/en/quote/01268.HK.md)

## Related News & Research

- [China’s Chery sees its EV sales topping 1m abroad amid global energy crisis-SCMP](https://longbridge.com/en/news/287136621.md)
- [Chinese automaker Chery to launch EV brand with Japan's Autobacs Seven](https://longbridge.com/en/news/286516866.md)
- [ICCT analysis maps global distribution of EV sales](https://longbridge.com/en/news/286786825.md)
- [IEA: Global EV sales headed for another record year despite the slowdown](https://longbridge.com/en/news/287007351.md)
- [Chinese EV Drivers Rolling Past Range Anxiety](https://longbridge.com/en/news/286127438.md)