China Yongda downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded China Yongda Automobiles to Neutral from Overweight with a HK$3.50 price target. The analyst worries that a weak pricing environment will drag down the company’s bottom line in the second half of 2023 to nearly record-low new car sales margins. It recommends taking profit and will revisits the stock when pricing improves more meaningfully.