According to "The Big Bank," Bank of America Securities has lowered the target price for ZHONGSHENG HLDG to 8 yuan, maintaining a "Underperform" rating

Bank of America Securities published a research report indicating that Zhongsheng Holdings (00881.HK) had a core net loss of 400 million RMB in the second half of last year, with revenue growing 2% year-on-year, new car revenue increasing by 5%, and new car sales declining by 1%, while the average price rose by 6%. Used car sales fell 12% year-on-year to 110,000 units, with a profit of approximately 2,500 RMB per vehicle. After-sales service revenue decreased by 9% year-on-year, and commission income dropped by 68%. The net loss for the period was 2.7 billion RMB, consistent with preliminary results.

Looking ahead to 2026, Zhongsheng aims for an improvement in new car sales gross margin, with after-sales service gross margin increasing by 5% year-on-year, electric vehicle sales doubling to 80,000 units, overall new car sales maintaining at 500,000 units, and stable used car business. Bank of America Securities has lowered its net income forecasts for Zhongsheng for 2026 and 2027 by 18% and 21%, respectively, in response to last year's second-half performance. The target price has been reduced from 10 RMB to 8 RMB due to expectations of pressure on new car sales gross margin, reiterating the "underperform" rating