【招银国际】NEV to offset luxury, cost control to drive profit-250331（5页）.pdf

1、 PLEASE READ THE ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES ON LAST PAGE MORE REPORTS FROM BLOOMBERG:RESP CMBR OR http:/.hk 1 MN 31 Mar 2025 CMB International Global Markets|Equity Research|Company Update Yongda Automobiles(3669 HK)NEV to offset luxury,cost control to drive profit Maintain BUY.

2、Yongdas 2H24 net profit was largely in line despite unexpected impairment losses.We believe Yongda has established a first-mover advantage in the NEV dealership sector through years of trial and error and the partnership with NEV automakers.Better cost control in SG&A expenses in FY24 gives us more

3、confidence in its FY25 earnings growth potential,as cost cuts could play a more important role than some investors could expect.Its dividend yield could reach 9%this year,assuming a payout ratio of 80%(vs.122%in FY24).2H24 core earnings beat with better cost control.Yongdas 2H24 revenue rose 4%HoH t

4、o RMB32.4bn,in line with our forecast.Its overall GPM remained flat HoH at 8.3%in 2H24,lower than our forecast by 0.3ppts.The GPM for new-car sales and related services(including auto finance commission and revenue from decoration products)only improved 0.2ppts HoH to 1.8%in 2H24 despite higher OEM

5、rebates.However,the better-than-expected operating expenses were more than offset the slightly weaker gross profit.That,along with an unexpected impairment on goodwill and receivables of RMB85mn,resulted in an in-line net profit of RMB89mn in 2H24.In addition,the full-year proposed dividends of RMB2

6、44mn correspond a payout ratio of 122%,implying a dividend yield of 5.1%.Aggressive NEV network expansion plan to offset luxury decline.Yongda has been ambitious with a NEV sales target of 45,000 units this year,accounting for nearly 30%of total sales volume.Management targets 50 HIMA stores and 10