China's Zhongsheng sinks to over 2-year low as brokers trim price

Zhongsheng group

06/09/2022 08:34

** Shares of automobiles distributor Zhongsheng Group
Holdings Ltd  0881.HK  fall as much as 5.6% to HK$33, lowest
since May 2020 
    ** Stock marks the biggest intraday pct decline since Aug.
30 if gains hold; third biggest pct decliner in Hang Seng Index
 .HSI  and Hang Seng Commerce & Industry Index  .HSNC  
    ** The Liaoning-based company says it has bought back
629,000 shares at between HK$34.90 and HK$35.85 per share for
HK$22.17 mln ($2.82 mln)  urn:newsml:reuters.com:*:nFWN30C0EB
    ** Jefferies maintains "buy" rating on the stock but trims
PT to HK$61 from HK$71, to factor in lower-than-expected margin 
and aftersales growth in 1H22 given lower frequency of vehicle
travel due to lockdowns
    ** UBS maintains "sell" on the stock and cuts PT to HK$33
from HK$36 on foreseeing longer-term pressure on new car margin 
    ** Hang Seng Commerce & Industry Index  .HSNC  slips 0.3%,
while Hang Seng consumer goods and services index  .HSCGSI  and
Hang Seng Index  .HSI  both climb 0.1%
    ** As of last close, stock down 42.5% this year
    
($1 = 7.8491 Hong Kong dollars)

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