Hong Kong-listed auto dealer MeiDong surges on upbeat outlook, M&A deal

China MeiDong Auto Holdings

13/08/2021 07:21

** Shares of Hong Kong-listed automobile dealer China
MeiDong Auto Holdings Ltd  1268.HK  surge 5.5% to HK$44.20,
heading for their biggest daily percentage gain since July 13  
    ** Stock hits the highest since July 29 and on course for a
sixth straight session of gain; tenth-biggest percentage gainer
in the Hang Seng Composite Index  .HSCI  
    ** Guangdong, China-based auto dealer expects its net profit
to rise not less than 70% from a year ago, thanks to sales
growth and improved margins in new passenger vehicle business
and certain one-off gains  urn:newsml:reuters.com:*:nFWN2PJ0D0
    ** Co says to buy Nanjing Xiezhong Lexus Automobile Sales
and Services Co Ltd for 420 mln yuan ($64.8 mln) as it expands
dealership network to Nanjing and its brand portfolio
 urn:newsml:reuters.com:*:nFWN2PJ1DP
    ** Citi maintains "buy" rating on the stock but lifts TP to
HK$51 from HK$49 on expectation MeiDong will announce more M&A
deals over the next 6-12 months
    ** The Hong Kong Hang Seng consumer goods and services index
 .HSCGSI  eases 0.9% and the Hang Seng Composite Index  .HSCI 
falls 1.2%
    ** The Hang Seng China Enterprises Index  .HSCE  drops 1.5%
and the benchmark index  .HSI  declines 1.2%
    ** As of last close, the stock had surged 33% this year
    
($1 = 6.4778 Chinese yuan)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))