Chinese car dealership MeiDong Auto's H1 revenue falls 27% yr/yr amid weak demand

China MeiDong Auto Holdings

26/08/2026 14:47

Overview
China auto dealership's revenue fell 27% yr/yr for six months ended June 2026
Company reported loss of RMB286 mln for the period, smaller than prior year loss
Gross profit margin improved to 5.3%, net cash inflow from operations rose 43% yr/yr

Outlook
Company did not provide specific financial guidance or outlook for future periods in the press release

Result Drivers
LUXURY-VEHICLE DEMAND – New passenger-vehicle revenue fell 26.4% to RMB5.84 bln amid weak demand, store-network adjustments and luxury-brand share losses
LOWER MORTGAGE COMMISSIONS – After-sales and mortgage-facilitation revenue fell 30.2% to RMB1.54 bln as demand and commission rates declined

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 7.38 bln
 
H1 Net Loss Attributable
 
RMB 275.5 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"
Wall Street's median 12-month price target for China MeiDong Auto Holdings Ltd is HK$1.94, about 361.9% above its August 26 closing price of HK$0.42
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads
Aug 26 - China's Li Auto Q2 revenue falls 15% on lower deliveries
Aug 24 - China's XPeng Q2 revenue rises on increased vehicle deliveries
Aug 25 - China auto parts supplier Minth Group's H1 revenue rises on European NEV demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)