(1) DJ EQS-News: Merrill Lynch initiated coverage on China MeiDong Auto Holdings Limited (1268.HK) at Buy; TP of HKUSD40.50 EQS-News / 05/02/2021 / 15:05 UTC+8 Merrill Lynch initiated coverage on China MeiDong Auto Holdings Limited (1268.HK) at Buy; TP of HKUSD40.50 Merrill Lynch initiated coverage on China MeiDong Auto Holdings Limited (1268.HK) at Buy with a target price of HKUSD40.50, representing an upside of 56.0% from the closing price of HKUSD25.90 on 29th January. Merrill Lynch appreciates Meidong's differentiated strategy, which focuses on luxury brand car dealerships in fast-growing yet under-penetrated tier 3-5 cities, making it a key beneficiary from consumption upgrade as regional income rises. Merrill Lynch also likes Meidong's laser focus on high operating efficiency and inventory turnover, which sees the company generates significantly higher returns and faster growth than peers. Supported by its strong operating cash flow and net cash position, Merrill Lynch believes it has a growing capacity to pursue acquisitions, which could pose further upside to the stock's valuation.