Profit30k2025 : maybe certain operational cost is fix? less car orders but pay the same amount of headcount. e.g., headcount costs 4000 cars. last time sold 14k cars, profit = 10k cars (14k-4k cost) now sales drop to 7k car sales, profit = 3k cars (7k-4k cost).
revenue drop 50% 14k to 7k
profit drops 70%, 10k to 3k

Jelly_Fisk07 OP Profit30k2025 : Hmm.. thanks for the explanation. But the QR report should have a further breakdown on this

Profit30k2025 : they only mention lower revenue, so lower profit.
lower operation margin. or more discount given due to competitive market

爱你哟 : Here are several forward-looking views and reasons regarding long-term investment in Baoma Autos (BAUTO 5248) for reference:
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1. Valuation advantage and margin of safety
Low valuation level: Currently, BAUTO's PE and PB are both at historical lows, reflecting a high margin of safety. For example, a Community analysis indicates its P/E is about 4.7 times, PB is about 1.65 times, which is significantly lower compared to its peers, providing potential opportunities for value investors to 'buy low and sell high.'
High dividend yield: The company currently has a dividend yield exceeding 20%, which greatly provides downside protection. Even if the stock price fluctuates in the short term, generous cash dividends can bring stable returns to investors.
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2. Technical aspects and market sentiment
Oversold technical signals: Recently, BAUTO's stock price is close to a 52-week low, and technical indicators show oversold conditions. This state often indicates that the market may rebound, technically providing opportunities for entering at lower prices.
Batch building strategy: Considering the current low price's safety margin, investors can adopt a batch buying strategy to further dilute costs and capture subsequent rebound opportunities.
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3. Business transformation and long-term catalysts.
Multi-brand strategy: Although recently impacted by the surge of Chinese Autos leading to declines in sales for Mazda and Kia, the company is promoting a multi-brand strategic transformation to enhance market competitiveness.
Electric vehicle business layout: BAUTO is actively positioning itself in the electric vehicle market and has made moves in launching new models and optimizing the supply chain. Policy support (such as the extension of electric vehicle purchase tax incentives for the coming years) provides strong backing for its long-term development.
Robust balance sheet: A strong financial structure and sufficient Cash reserves provide a solid foundation for the company's future transformation and performance rebound.
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4. Institutions and market confidence.
Actions of major shareholders and institutions: Recently, major shareholders have increased their holdings and institutions have maintained a "Buy" rating, demonstrating market confidence in the future performance improvement of BAUTO. This confidence often translates into long-term upward momentum in stock prices after performance improves.
Long-term target price adjustment: Some institutions have set target prices at higher levels, indicating market recognition of the company's long-term value.
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5. Risks and hedging.
Short-term challenges: It cannot be ignored that fierce competition among Chinese brands may continue to exert pressure on sales and profitability in the short term. Investors need to pay attention to the sales of new models, progress in the electric vehicle business, and overall macroeconomic changes.
Forward-looking layout: For investors with a strong risk tolerance, it is worth considering a strategy of accumulating positions during dips with a solid fundamental basis and low valuation, holding for the long term and waiting for the results of the company's transformation.
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Summary
From a forward-looking perspective, BAUTO is currently at a low valuation with an exceptionally high dividend yield. Additionally, the company is transforming through a multi-brand strategy and electric vehicle Business to cope with market competition, which forms a strong argument for long-term investment. Despite facing sales pressure and industry competition in the short term, the solid financial situation and policy dividends will help the company achieve a rebound and value recovery in the medium to long term.
This viewpoint considers both fundamental and technical analysis, reflecting market sentiment and Institutional confidence, and is an important symbol for long-term value investors to pay attention to.
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I hope the above analysis can help provide a more comprehensive understanding of the investment value of BAUTO 5248.
The above content is from chat gpt for reference only.

103575541 : The power of dividends

103242867 : forward looking obviously, last year was BAUTO record year, for sure there's a big drop this year

104622909 : I also believe the future is promising. But where is the bottom? No one knows. It might drop another 20-30%.

Kelvin Lau1668 : It is whole industry issues, not just BAUTO dropping
Automotive is a large cyclical and competitive industry
But if you truly understand about car, you will find out this company distribute high quality brand car with their good services