Zhongsheng stock reports a sharp first half profit drop

Published on 10/07/2026 at 05:34 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Zhongsheng stock posted RMB 110 million in first-half profit on September 29, down 89.1 percent year over year. After-sales revenue rose 0.8 percent as HKEX shares traded at HKD 2.48.

Zhongsheng, KYG9894K1085, Illustration mit AI erstellt.

Zhongsheng stock was trading at HKD 2.48 on HKEX on October 7, 2026, down 3.13 percent from the previous close and equal to its 52-week low. The latest corporate signal is a weak first-half earnings profile paired with a better gross margin.

Profit drops 89.1 percent

According to Moomoo on September 29, Zhongsheng reported unaudited interim results for the six months ended June 30, 2026. Revenue fell 18.5 percent year over year to RMB 63.02 billion, while profit attributable to owners dropped 89.1 percent to RMB 110 million; basic earnings per share declined to RMB 0.047 from RMB 0.427.

The earnings comparison shows why the stock remains under pressure. New-car revenue fell 20.3 percent to RMB 46.19 billion, and sales volume declined 17.6 percent to 188,000 units, while used-car revenue fell 28.4 percent to RMB 4.31 billion.

After-sales revenue rises 0.8 percent

After-sales services provided a measurable counterweight in the June 2026 half-year period. Revenue reached RMB 11.54 billion, up 0.8 percent year over year, and gross profit increased 2.7 percent, according to Moomoo.

Group gross margin improved from 5.4 percent to 8.0 percent, even as vehicle sales weakened. Zhongsheng also closed or repurposed 66 inefficient traditional brand stores in the first half and targeted 300 new-energy vehicle brand stores by the end of 2026, with new-energy vehicles planned to represent 35 percent of December monthly sales.

Analysts see HKD 5.36

The Globe and Mail reported on September 9 that Zhongsheng's analyst consensus was Moderate Buy with an average price target of HKD 5.36. The report also said Citic Securities maintained a Buy rating on September 7 with a HKD 6.00 target, while the stock had closed at HKD 3.55 on the prior session.

A separate September 2026 overview counted 18 analysts, including 14 Buy, 2 Hold and 2 Sell ratings, according to Eulerpool. The contrast is clear: analyst expectations remain constructive, but the June results show that vehicle demand and earnings conversion are still the decisive issues.

Stock touches 52-week low

Zhongsheng was last at HKD 2.48 on October 7, 2026, at 11:18 a.m. HKT, with intraday trading between HKD 2.48 and HKD 2.63. Market capitalization was HKD 5.9 billion and volume was 1,748,054 shares at that timestamp.