Morgan Stanley analyst Shelley Wang has maintained their neutral stance on CMEIF stock, giving a Hold rating on August 15.
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Shelley Wang’s rating is based on a combination of factors that reflect the current challenges faced by China MeiDong Auto Holdings. The company has recently reported a significant non-cash impairment on goodwill and dealership rights, amounting to over Rmb0.8 billion for the first half of 2025. This impairment is attributed to a weaker market outlook, influenced by the introduction of an additional 10% consumption tax on luxury cars and a decline in auto finance commissions as banks discontinue high-interest, high-commission products.
Furthermore, the company had already recorded a Rmb2.9 billion impairment in 2024, making the recent impairment an unexpected development. Despite these challenges, the management has indicated that the company is likely to break even at the operating level, excluding the impairment loss. However, there remains uncertainty about future impairments, the viability of their “high inventory turn” strategy, and the potential for new revenue streams, all of which contribute to the Hold rating.
According to TipRanks, Wang is ranked #8688 out of 9925 analysts.
In another report released on August 15, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a HK$2.00 price target.