China's Zhongsheng falls most in nearly 4 years on weak H1 results

Zhongsheng group

31/08/2022 03:46

** Shares of automobiles distributor Zhongsheng Group
Holdings Ltd  0881.HK  fall as much as 10.3% to HK$34.50,
marking the biggest intraday pct decline since October 2018
    ** Stock hits the lowest since May 2020 and is the
second-biggest pct decliner in Hang Seng Index  .HSI  and Hang
Seng Commerce & Industry Index  .HSNC  
    ** The Liaoning-based co says H1 net profit fell 7.3% to
3.43 bln yuan ($496.44 mln) from a year-ago period, revenue down
1.5% and new car sales volume dropped 12.1%  urn:newsml:reuters.com:*:nFWN3051I5
    ** Daiwa reiterates "buy" rating on the stock, but revises
down Zhongsheng's 2022 full-year sales volume target estimates
and trims gross profit margin forecast for new vehicles segment
to reflect weaker macroeconomic conditions
    ** The Hang Seng Commerce & Industry Index  .HSNC  falls
1.7%, Hang Seng consumer goods and services index  .HSCGSI 
drops 2.2%, and Hang Seng Index  .HSI  slides 1.3%
    ** As of last close, stock down 36.8% this year

    ($1 = 6.9092 Chinese yuan)

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