First Read: Zhongsheng Group "2026 AIC: still awaiting recovery" (Buy) Min

研报英文原文证据摘录

First Read: Zhongsheng Group "2026 AIC: still awaiting recovery" (Buy) Min

Global Research

28 May 2026ab

First Read

EquitiesZhongsheng Group

2026 AIC: still awaiting recovery China

Retailers, Specialty

12-month rating Buy

Key highlights

Zhongsheng management attended the Asian Investment Conference 2026. Key 12m price target HK$10.50

highlights include: 1) the primary focus for 2026 will be the adjustment and optimisation Prior : HK$12.00

of store network; 2) the company targets new car sales of c500,000 units in 2026,

Price (27 May 2026) HK$6.48

largely flat YoY; 3) retail pricing is stabilising, while the outlook of new car margin

remains uncertain. RIC: 0881.HK BBG: 881 HK

Trading data and key metrics

Expansion of NEV store networks

52-wk range HK$17.29-6.44

Zhongsheng has opened 20-30 stores YTD, including Lynk&Co, Geely Galaxy, Market cap. HK$15.5b/US$1.97b

Leapmotor, Voyah, and has obtained dealership authorisation from Zeekr. Management

Shares o/s 2,386m (ORD)

expects these newly opened stores, along with those in the pipeline, will gradually

Free float 78%

contribute sales volume and revenue from H226. For AITO, management guided that

Avg. daily volume ('000) 12,246

there are no near-term plans for further store expansion, citing solid ramp-up of existing

stores; Zhongsheng currently accounts for c10% of AITO's sales volumes in China, Avg. daily value (m) HK$96.4

according to the company. Management expects the company's NEV sales volume in Common s/h equity (12/26E) Rmb46.2b

2026 to double, reaching 80,000 units compared with 40,000 units in 2025. P/BV (12/26E) 0.3x

Net debt to EBITDA (12/26E) 3.1x

Gauging the earnings dynamics EPS (UBS, diluted) (Rmb)

The competition in China's PV market remains intense, creating uncertainties over new From To % ch Cons.