MB-ZGHL@EC2703A

TOUYUN BIOTECH

ONE MEDIA GROUP

JINYUAN HCHEM

SINO ICT

C FIN INT INV

SINGASIA HLDG

FULLSHARE

TI CLOUD

MS CONCEPT

516110

00881

159565

Zhongsheng Group Holdings (SEHK:881) has faced significant share price declines, with a recent drop of 10.76% to HK$10.37. The company's P/E ratio stands at 8.1x, indicating it is undervalued compared to its fair P/E estimate of 17.7x and the industry average of 12.8x. Despite expected earnings growth of 22.65% per year, revenue is forecasted to decline slightly. A DCF model suggests a future cash flow value of HK$69.87, raising questions about potential mispricing. Investors are advised to consider both risks and opportunities before making decisions.

Simplywall

Guotai CSI 800 Automobile and Parts ETF

ZHONGSHENG HLDG

E Fund CSI Auto Components Thematic ETF

Zhongsheng Group Holdings (SEHK:881) Valuation Check After Prolonged Share Price Weakness

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ZHONGSHENG HLDG(00881) fell 10.76%, with a trading turnover 324.3 Million HKD, and a year-to-date fell 10.8%. DRINDA(02865) fell 9.32%, with a trading turnover 451.5 Million HKD, and a year-to-date rose 51.2%. CALB(03931) fell 9.26%, with a trading turnover 179.9 Million HKD, and a year-to-date fell 0.1%.

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Top 10 HK Stock Losers (2.26)

Goldman Sachs released a report stating that Zhongsheng is facing declining demand and margin pressure, deciding to stop its research coverage and lowering the target price from 21 yuan to 11 yuan. Zhongsheng opened nearly 1.5% lower this morning, at one point dropping nearly 10%, and ultimately closed at 10.49 yuan, a decline of 9.7%, becoming the blue-chip stock with the largest drop. Goldman Sachs expects Zhongsheng's earnings for 2025 and 2026 to be revised down by 41% to 43%

AASTOCKS

Goldman Sachs: ZHONGSHENG HLDG faces weak demand and gross margin challenges, significantly lowering the target price to 11 yuan

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Morgan Stanley lowered the target price for ZHONGSHENG HLDG to 18 yuan, citing a decline in commission income for mainland auto dealers. Although profits are recovering, they face risks. The report indicates that the profit margin for new cars in 2025 is below expectations, with profits expected to bottom out in 2025 and rebound in 2026. The target prices for YONGDA AUTO and MEIDONG AUTO have been reduced to 1.9 yuan and 1.7 yuan, respectively, with ratings both at market perform

YONGDA AUTO

MEIDONG AUTO

Morgan Stanley lowers the target price for mainland automobile dealers, with Zhongsheng Holdings' target price reduced to 18 yuan

Zhongsheng Group Holdings Limited has submitted an updated director list to the Hong Kong Stock Exchange. The Board includes Executive Directors Huang Yi, Li Guoqiang, Zhang Zhicheng, Tang Xianfeng, Yu Ning, and Zhou Xin; Non-executive Director Chan Ho Yin; and Independent Non-executive Directors Chin Siu Wa Alfred, Li Yanwei, Cheng Po Chuen, and Bai Fengjiu. The Board oversees six committees, with various members assigned to specific roles, including chairpersons for the Audit, Remuneration, Nomination, Compliance, and Risk Committees.

Reuters

Zhongsheng Group Files Director List with HKEX

Zhongsheng Group Holdings Ltd. has announced its board composition, which includes six executive directors, one non-executive director, and four independent non-executive directors. The company has also established six key committees—Audit, Remuneration, Nomination, Compliance, Risk, and Environmental, Social and Governance—to enhance corporate governance and risk management. The latest analyst rating for the stock (HK:0881) is a Hold with a price target of HK$13.00. Zhongsheng operates in the automotive dealership sector in Mainland China, focusing on mid- to high-end and luxury vehicles.

Tip Ranks

Zhongsheng Group Sets Out Board Composition and Committee Roles

Zhongsheng Group Holdings Ltd. announced the resignation of non-executive director Sun Yanjun, effective January 23, 2026, due to retirement and personal commitments. The company confirmed there are no disagreements with the board regarding his departure, indicating a routine governance transition. The board composition has been updated on relevant platforms. The latest analyst rating for Zhongsheng Group (HK:0881) is a Hold, with a price target of HK$13.00, and the current market cap is HK$28.75 billion.

Zhongsheng Group Non-Executive Director Sun Yanjun Resigns for Retirement

Morgan Stanley's report pointed out that BMW China will reduce the suggested retail price by 10% to 20% starting from January 1, mainly targeting imported models. This move is not a price competition, as dealers have already offered discounts below the suggested retail price. The actual transaction price is expected to remain unchanged, with YONGDA AUTO, ZHONGSHENG HLDG, and MEIDONG AUTO benefiting slightly. The reduction in procurement costs will enhance the gross profit of new car sales, but future rebates may decrease

Morgan Stanley: BMW China lowers suggested retail prices by up to 20%, expects dealers to benefit in the short term

On December 17th, ZHONGSHENG HLDG (881.HK) experienced a quiet trading day, with the stock price testing the support level of 34.84 yuan, remaining under pressure for several days without relief. Short-term market sentiment is dominated by risk aversion, with major funds maintaining a wait-and-see approach. Technical indicators continue to show a bearish arrangement, and intraday capital flow remains defensive, resulting in low participation. In terms of the industry, the automotive sector is facing destocking pressure, and the effectiveness of favorable policies has not been significant. This week, consumption promotion news from various regions has not directly translated into order growth, leading to an overall slowdown in sector rotation, with small-cap stocks being greatly affected by sentiment. ZHONGSHENG HLDG has recently been consolidating at low levels, with each minor buying by major players triggering intraday volatility. Investors should closely monitor policy stimuli, the performance of core stocks, and sector rotation. Volume remains the core standard for judging trends. Right-side trading should primarily focus on waiting for stable capital inflows and industry event catalysts, patiently awaiting sector signals. Rapid switching of hotspots has led to unpredictable market directions, necessitating vigilance against sudden drops. Positioning and risk management should be integrated throughout the entire operation process

Technical Forecast

Morning Trend | ZHONGSHENG HLDG faces pressure with reduced volume, is a hot spot switching window approaching?

UBS released a research report stating that after meeting with the management of ZHONGSHENG HLDG, it has lowered the company's earnings forecast for 2025 to 2027 by 12% to 18%, and the target price has been reduced from HKD 24 to HKD 20.8, maintaining a "Buy" rating

UBS lowers Zhongsheng's target price to 20.8 yuan, rating "Buy"

Zhongsheng Holdings (881.HK) performed extremely poorly during yesterday's trading session, with a defensive bias from the main players. The stock price repeatedly tested the HKD 18 level without strong support, and trading volume was low. The recent rotation in the automotive circulation sector has weakened, with industry data and policies lacking marginal surprises to stimulate the market. Rumors of a price war have put pressure on the fundamentals. The MACD has formed a death cross, and moving averages are under strong pressure. Pay attention to whether the key support at HKD 18 is breached. If there are signs of unusual activity from the main players or rotation signals during intraday trading, the sector may see a short-term opportunity

Morning Trend | Zhongsheng Holdings (881.HK) Key Support Approaches, Will the Automotive Circulation Experience Another Surge?

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ZHONGSHENG HLDG's stock price fell 1.3%, closing at HKD 11.69, with a trading volume of approximately 810,000 shares, involving HKD 9.48 million. Porsche is considering gradually exiting the Chinese market due to a decline in delivery volumes and plans to reduce the number of dealers by 2026. Automotive dealership stocks generally fell, with Brilliance China down 1.3% and HARMONY AUTO down 2.5%. The Hang Seng Index fell by 146 points, closing at 26,339 points

etnet

HARMONY AUTO

Brilliance China

In the "Active Stocks," Zhongsheng fell by over 1%, rumored that Porsche plans to gradually exit the Chinese market

HSBC's research report pointed out that Zhongsheng Holdings' new car business has not yet bottomed out, luxury car sales continue to be weak, and aggressive pricing of electric vehicle models has intensified price pressure, affecting the used car market. Although the after-sales service business is growing, it cannot offset the headwinds faced by the core business. The bank has lowered its earnings forecasts for 2025 and 2026 by 43% and 38%, respectively, reduced revenue forecasts by 12%, and cut the target price from 12 yuan to 11.8 yuan, maintaining a "reduce" rating

HSBC Research lowers Zhongsheng Holdings' target price to 11.8 yuan as luxury car and used car sales continue to be under pressure

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Morgan Stanley released a research report stating that mainland luxury car dealers will benefit from industry consolidation, with ZHONGSHENG HLDG and TUHU-W expected to dominate the market. ZHONGSHENG HLDG's maintenance service gross profit has a compound annual growth rate of 14%, and profits are expected to rebound by 67% year-on-year in 2026. The target price has been raised from HKD 15 to HKD 21, with a rating of "Overweight." TUHU's target price has been raised from HKD 20 to HKD 23, with an expected compound annual growth rate of 25% in profits. The target price for Meidong Automotive has been lowered to HKD 2.1, with a rating in line with the market

Zhitong

TUHU-W

Morgan Stanley: Expects mainland luxury car dealers to benefit from industry consolidation, optimistic about ZHONGSHENG HLDG and TUHU-W

MB-ZGHL@EC2703A(27077.HK)

Zhongsheng Group Holdings (SEHK:881) Valuation Check After Prolonged Share Price Weakness

Top 10 HK Stock Losers (2.26)

Goldman Sachs: ZHONGSHENG HLDG faces weak demand and gross margin challenges, significantly lowering the target price to 11 yuan

Morgan Stanley lowers the target price for mainland automobile dealers, with Zhongsheng Holdings' target price reduced to 18 yuan

Zhongsheng Group Files Director List with HKEX