According to Zhitong Finance APP, a research report indicates that ZHONGSHENG HLDG (00881) positions itself as a one-stop automotive service provider. Beyond new car sales, the company offers cross-brand maintenance service centers, high-quality used cars, insurance renewal services, and other businesses, committed to meeting car owners' full lifecycle needs.

The research projects the company's operating revenue for 2024-2026 at RMB 179.476 billion, RMB 184.102 billion, and RMB 180.736 billion respectively, with net profit attributable to shareholders at RMB 2.545 billion, RMB 3.164 billion, and RMB 4.940 billion respectively. Based on current stock price, the corresponding P/E ratios are 11.0x, 8.9x, and 5.7x, with a 2026 PEG ratio of 0.1. The company's 2026 P/E and PEG ratios are both below the average valuation of comparable companies, warranting an initial "Buy" rating.

**Domestic Automotive Dealer Leader Officially Transforms to New Energy**

Zhongsheng Group ranks first on the 2024 domestic top 100 automotive dealers revenue list. Its core brands include luxury and mid-to-high-end brands such as Mercedes-Benz and Lexus, operating 419 dealership 4S outlets as of H1 2024. At the end of 2024, the company announced its partnership with Seres, with some outlets already converted to AITO 4S stores. The AITO brand authorization not only brings new customers but also fulfills existing customers' new energy vehicle replacement needs, better retaining existing clients within the Zhongsheng system.

**New Car Sales: H1 2024 New Energy Dealership Expected to Restore Profitability**

The company's dealership brands are relatively concentrated while pursuing sales influence within brands. In H1 2024, Zhongsheng Group's domestic market share for Mercedes-Benz and Lexus sales reached 18% and 32% respectively. Considering cross-business gross profit from new car sales, the H1 2024 comprehensive gross profit per new car was RMB 4,700. The AITO brand authorization will inject dual growth in both sales volume and profitability into existing new car business.

**Centralized Operations: After-sales Achieves Cross-brand High-quality Maintenance, Used Car Business Grows Rapidly**

Through group-level coordination and centralized operations to improve business efficiency, the company's after-sales and used car businesses grew 9.3% and 61.6% year-over-year respectively in H1 2024. The company operates 35 maintenance service centers in H1 2024, breaking through the single authorized brand limitation of 4S stores to provide more cost-effective, high-quality maintenance services for insurance companies and customers. Additionally, maintenance centers can channel non-Zhongsheng car buyers into the Zhongsheng system and provide excellent vehicle sources such as courtesy cars for the group's used car business.