car trade industry special report: Qimao leading the development of a large space, with high investment value

4S shop in the automotive industry, the main business model of trade. German automotive trade industry experienced a planned economy era and the era of multi-level marketing, brand monopoly current stage in the single-stage, 4S stores as the main mode of operation at this stage, car trade zone model is the 4S shop model to add.
Qimao industry's profitability model. New car sales business, foreign brands, a joint venture brand and own brand high to low gross margins; after-sales services accounted for revenue and profit contribution will gradually increase, the gross margin is expected to continue to remain high; Qimao evolving industry new car sales basis, after-sales business for profit growth, and other business development for the strategic direction of the multi-level business development model.
Automobile trade industry leaders still have room for development. Though faced with the interests of the game with the OEMs, but the automobile trade industry leading companies today are still large room for development, on the one hand from the existing store sales increased car ownership has brought rapid growth of after-sales service, on the other hand automobile trade Group is expected to lead gradually to the country by the regional expansion of the network channels will also continue to sink, the expansion is the acquisition of the Main Line.
Automobile trade industry is expected to form a cluster effect. Automobile trade is a critical factor of business financial strength and liquidity ratio, cash flow rate depends on experience and management level. If listed, the company can use financing platform to expand and reduce the cost of capital funds; public financing while offering platform as the company's future acquisition of new stores and to provide a solid foundation for the industry, auto industry trade A shares in such companies is expected to form a cluster effect.
Auto trade industry optimistic about the long-term, valuations may refer to retail sales, peak Heavenly, the large share of shares and A shares the main building investment targets: on the automobile trade industry, we believe that future investment in the field of automotive industry an important part of the one, but in the valuation, we believe that steady growth in automobile trade earnings characteristics similar to commercial retail, according to the valuation of commercial retail and relatively reasonable valuation levels. A share market is currently the main target for the peak Heavenly (600 335), the large shares (600,704) and building shares (600327), H-share market including the rise Holdings (00881), Dah Chong Hong Holdings (01828).
Risk Warning: the automotive industry sales lagged behind expectations; industry competition led to the overall profitability levels.