Stock Track | ZHONGSHENG HLDG Soars 5.82% on Strong After-Sales Growth and Expected Margin Recovery

Stock Track
Sep 02

ZHONGSHENG HLDG (00881) saw its stock soar 5.82% in Tuesday's trading session, as investors reacted positively to the company's latest financial results and future outlook. The surge comes on the heels of the company's recently released interim results for the first half of 2025, which showed resilience in its after-sales service segment despite challenges in new car sales.

According to the financial report, ZHONGSHENG HLDG's after-sales service revenue reached RMB 11.45 billion in H1 2025, marking a 4.4% year-on-year increase. More impressively, the after-sales service gross profit grew by 8.1% to RMB 5.44 billion. This strong performance was underpinned by a 15.2% growth in active customers to 4.54 million, generating 4 million after-sales service visits.

While the company faced headwinds in its new car sales segment, with total revenue declining 6.2% year-on-year to RMB 77.322 billion, analysts are optimistic about future prospects. The introduction of the AITO brand and growth in Toyota sales are expected to optimize the sales structure and drive a recovery in new car sales gross margins. Additionally, the further integration of the dealer network is anticipated to support this positive trend, potentially explaining investors' bullish stance reflected in today's stock surge.

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