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Shares I love: China Yongda Automobiles Services

Increasing demand for cars in China is driving China Yongda Automobiles Services’ profits
Shares I love: China Yongda Automobiles Services

China Yongda Automobiles Services sells new and used cars, and an increasing portion of its revenue comes from servicing and parts

The company’s profits grew 110 per cent over the first half of this year

Mike Kerley, manager of funds including Henderson Far East Income (HFEL) and Janus Henderson Asian Dividend Income (GB00B6193536), explains why he invests in car dealer China Yongda Automobiles Services (HK:3669)

“With rising per capita incomes, the demand for autos in China is very strong with sales rising by 36 per cent in the first five months of 2021, compared with a year earlier. The euphoria surrounding electric vehicle manufacturers has also seen their share prices rise pushing valuations beyond their long-term averages.

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