Value investor Duan Yongping said on October 30 that he would not look at Beijing Automotive, writing: "The business model seems unable to pass my first screen; I won't look." The remark was posted in response to a user’s inquiry on the social platform Xueqiu.
In the original post, the user argued that the company has a renminbi market capitalization of more than 5 billion, total assets of 50 billion, and nearly 20 billion in cash. The user described Beijing Benz as the core profit pillar and said Mercedes-Benz, "as a top-tier global luxury automaker," was unlikely to fail. The user further claimed that parent BAIC Group is Mercedes-Benz’s largest shareholder, that the partnership is stable with "no possibility of terminating cooperation," and that the all-new pure-electric GLC could gain market recognition. The post also said ordinary models would adopt Geely’s hybrid system, and proposed a 3–5 year holding period to await a profit turnaround.
Duan did not elaborate beyond his brief comment and offered no additional assessment of the company’s financials or partnership claims.
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