Hong Kong-listed auto dealer MeiDong surges on upbeat outlook, M&A deal

** Shares of Hong Kong-listed automobile dealer China MeiDong Auto Holdings Ltd surge 5.5% to HK$44.20, heading for their biggest daily percentage gain since July 13

** Stock hits the highest since July 29 and on course for a sixth straight session of gain; tenth-biggest percentage gainer in the Hang Seng Composite Index

** Guangdong, China-based auto dealer expects its net profit to rise not less than 70% from a year ago, thanks to sales growth and improved margins in new passenger vehicle business and certain one-off gains

** Co says to buy Nanjing Xiezhong Lexus Automobile Sales and Services Co Ltd for 420 mln yuan ($64.8 mln) as it expands dealership network to Nanjing and its brand portfolio

** Citi maintains "buy" rating on the stock but lifts TP to HK$51 from HK$49 on expectation MeiDong will announce more M&A deals over the next 6-12 months

** The Hong Kong Hang Seng consumer goods and services index eases 0.9% and the Hang Seng Composite Index falls 1.2%

** The Hang Seng China Enterprises Index drops 1.5% and the benchmark index declines 1.2%

** As of last close, the stock had surged 33% this year