Elevator Pitch
I like Hong Kong-listed automobile dealer China Yongda Automobiles Services Holdings Limited (CYYHF) [3669:HK] as a proxy for BMW (BMWYY) sales in China and its growing ancillary businesses. The company's recent acquisition also helps it increase exposure to key luxury brands and lower-tier cities.
China Yongda trades at 5.4 times consensus forward FY2020 P/E which represents a discount to most of its Hong Kong-listed Mainland China automobile dealer peers.
I assign a "Neutral" rating to the stock, as the potential reduction in additional dealer rebates from BMW in 2H