CHINA YONGDA AUTOMOBILES SERVICES INC. repurchases 500,000 shares

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CHINA YONGDA AUTOMOBILES SERVICES ($SEHK:03669) INC. is a holding company. The Company operates its businesses through four segments in the PRC. The Company’s segments include retail business, service business, spare parts business and financing business. The Company’s retail business sells automobiles and related products, including maintenance and after-sales services.

The service business provides maintenance services for automobiles. The spare parts business supplies spare parts and components for automobiles. The financing business provides financing products and services to customers who purchase automobiles from the Company’s retail business.

Price History

This news coverage has been mostly neutral, with some outlets reporting on the stock prices before and after the announcement. At the time of writing, the stock opened at HK$3.6 and closed at HK$3.7, up by 1.4% from the prior closing price of HK$3.6. This is a positive development for the company, which has been facing some challenges in recent months.

This move by the company shows that it is confident in its future and is committed to shareholder value. It is a positive sign for investors and should help to boost the stock price in the long term.

VI Analysis

The company’s fundamentals reflect its long term potential, below analysis on China Yongda Automobiles Services Inc. are made simple by VI app. According to VI Star Chart, China Yongda Automobiles Services Inc. has a high health score of 7/10 with regard to its cashflows and debt, is capable to sustain future operations in times of crisis. The company is classified as ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. Such company may be interesting to investors who are looking for a company with a strong dividend history and a healthy financial position.

VI Peers

In recent years, the competition among China’s major auto service companies has intensified. Among them, China Yongda Automobiles Services Holdings Ltd has emerged as a leading player, followed by G A Holdings Ltd, Grand Baoxin Auto Group Ltd and Centenary United Holdings Ltd. These companies have been locked in fierce competition in terms of market share, service quality and price.

– G A Holdings Ltd ($SEHK:08126)

A holding company, HNA Group Co., Ltd. operates businesses in the aviation, hospitality, finance, and other sectors. The Company’s segments include Aviation, which engages in the operation of airlines; Hospitality, which owns and operates hotels; Finance, which provides banking and other financial services; and Corporate and Others, which includes other businesses. HNA Group Co., Ltd. is based in Haikou, China.

– Grand Baoxin Auto Group Ltd ($SEHK:01293)

Grand Baoxin Auto Group Ltd is a Chinese automotive manufacturer with a market cap of 1.05B as of 2022. The company has a Return on Equity of 11.81%. Grand Baoxin Auto Group Ltd manufactures and sells vehicles and vehicle parts. The company offers a range of vehicles, including sedans, SUVs, and commercial vehicles.

– Centenary United Holdings Ltd ($SEHK:01959)

Centenary United Holdings Ltd is a Hong Kong-based investment holding company principally engaged in the provision of banking and financial services. The Company operates its business through four segments. The Corporate Banking segment is engaged in the provision of banking services to corporate customers, including deposits, loans, trade financing, capital market services, cash management services, foreign exchange services and other related services. The Retail Banking segment is engaged in the provision of banking services to individual customers, including deposits, loans, trade financing, capital market services, cash management services, foreign exchange services and other related services. The Treasury segment is engaged in the provision of treasury products and services, including foreign exchange trading, money market trading, fixed income trading, derivatives trading and other related services. The Others segment is engaged in the provision of personal accident insurance, general insurance and other related services.

Summary

Investing in China Yongda Automobiles Services Inc. can be a good way to gain exposure to the Chinese automotive market. The company is one of the largest auto retailers in China and has a strong presence in the country’s major cities. Additionally, China Yongda Automobiles Services Inc. has a diversified business model that includes car sales, financing, car leasing, and after-sales services. One potential risk to consider before investing is the company’s reliance on the Chinese automotive market. If the Chinese economy weakens or the government implements stricter regulations on the automotive industry, China Yongda Automobiles Services Inc. could be negatively impacted.

However, the company’s strong market position and diversified business model help mitigate these risks.