MeiDong Auto (01268) fell by more than 5%. As of press release, it was down 5.11% to HK$3.16, with a turnover of HK$10.5548 million.
The Zhitong Finance App learned that MeiDong Auto (01268) fell by more than 5%. As of press release, it was down 5.11% to HK$3.16, with a turnover of HK$10.5548 million.
According to the news, MeiDong Auto issued a profit warning, and it is expected that profit for 2023 will drop by about 73% year on year. Mainly due to weak consumption power due to macroeconomic impacts, gross profit is expected to fall by no more than 18%; impairment of goodwill and dealer rights is about $62 million; expenses arising from amortization have risen; litigation costs for resolving certain ancillary legal disputes are about $59 million; and increased income tax on dividend withholding.
CMB International previously stated that MeiDong Auto's performance in the second half of 2023 is under pressure to reduce the gross profit and goodwill of new vehicles. Looking ahead to 2024, the bank believes that Porsche is the most likely brand to improve profits. It is expected that Porsche's domestic sales volume will drop 13% to 70,000 units this year, the market share in the US East will be 15%, and the gross margin of new cars is expected to improve by 0.5 percentage points to 2.5%, leading to an improvement in overall gross profit of new cars.