MOGAN STANLEY China Autos & Dealers

turkish

July 12, 2013
Contents
Investment Case.............................................................................................................................................................3
China PV - Strong Mass Market in 1H; Japanese Brands Keep
Underperforming; Luxury Kicked Off Slowly but Now Recovering ...........................................................................6
Strong New Model Pipeline from Japanese Brands and Luxury Players’
Localization Plan Will Help Catch-up in 2H13 ..............................................................................................................8
Downstream Business: Maintaining Stable Growth and Ramping Up ....................................................................10
Zhongsheng: Japanese and Mercedes New Models Provide Upside......................................................................11
Baoxin: OW on Rising Exposure to After-Sales ........................................................................................................17
Zhengtong: Diversified Luxury Brand Mix to Dilute Slowdown Risk ......................................................................23
Yongda: Profitability Pressure on Aggressive New Store Openings ......................................................................29