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China ZhengTong Auto Services Holdings

Executive Summary

China ZhengTong Auto Services Holdings Limited, an investment holding company, operates as a 4S dealership company in the People’s Republic of China.


Snowflake Analysis

Good value with questionable track record.

Share Price & News

How has China ZhengTong Auto Services Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZA0's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-19.4%

ZA0

4.1%

DE Specialty Retail

2.2%

DE Market


1 Year Return

-62.2%

ZA0

1.5%

DE Specialty Retail

5.6%

DE Market

Return vs Industry: ZA0 underperformed the German Specialty Retail industry which returned -0.1% over the past year.

Return vs Market: ZA0 underperformed the German Market which returned 3.4% over the past year.


Shareholder returns

ZA0IndustryMarket
7 Day-19.4%4.1%2.2%
30 Day11.8%10.4%7.3%
90 Day7.3%27.8%22.1%
1 Year-60.6%-62.2%1.8%1.5%7.9%5.6%
3 Year-81.9%-84.2%-19.2%-23.3%4.5%-3.8%
5 Year-70.4%-75.6%-11.3%-54.6%12.5%-2.7%

Price Volatility Vs. Market

How volatile is China ZhengTong Auto Services Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China ZhengTong Auto Services Holdings undervalued compared to its fair value and its price relative to the market?

4.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ZA0 (€0.13) is trading above our estimate of fair value (€0.12)

Significantly Below Fair Value: ZA0 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ZA0 is good value based on its PE Ratio (4.3x) compared to the XE Specialty Retail industry average (13x).

PE vs Market: ZA0 is good value based on its PE Ratio (4.3x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: ZA0 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: ZA0 is good value based on its PB Ratio (0.2x) compared to the DE Specialty Retail industry average (1x).


Next Steps

Future Growth

How is China ZhengTong Auto Services Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZA0's forecast earnings growth (10.2% per year) is above the savings rate (0.2%).

Earnings vs Market: ZA0's earnings (10.2% per year) are forecast to grow slower than the German market (22.4% per year).

High Growth Earnings: ZA0's earnings are forecast to grow, but not significantly.

Revenue vs Market: ZA0's revenue (2.2% per year) is forecast to grow slower than the German market (6% per year).

High Growth Revenue: ZA0's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZA0's Return on Equity is forecast to be low in 3 years time (5.9%).


Next Steps

Past Performance

How has China ZhengTong Auto Services Holdings performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZA0 has high quality earnings.

Growing Profit Margin: ZA0's current net profit margins (1.9%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: ZA0's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: ZA0's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ZA0 had negative earnings growth (-45.8%) over the past year, making it difficult to compare to the Specialty Retail industry average (-4.6%).


Return on Equity

High ROE: ZA0's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is China ZhengTong Auto Services Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ZA0's short term assets (CN¥24.1B) do not cover its short term liabilities (CN¥25.8B).

Long Term Liabilities: ZA0's short term assets (CN¥24.1B) exceed its long term liabilities (CN¥5.4B).


Debt to Equity History and Analysis

Debt Level: ZA0's debt to equity ratio (144.2%) is considered high.

Reducing Debt: ZA0's debt to equity ratio has increased from 76.9% to 144.2% over the past 5 years.

Debt Coverage: ZA0's debt is not well covered by operating cash flow (12.9%).

Interest Coverage: ZA0's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

What is China ZhengTong Auto Services Holdings's current dividend yield, its reliability and sustainability?

8.19%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ZA0's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ZA0's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ZA0's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ZA0's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ZA0 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ZA0's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

Kunpeng Wang (48yo)

0.083

Tenure

CN¥988,000

Compensation

Mr. Kunpeng Wang has been an Executive Director of China Zhengtong Auto Services Holdings Limited since July 20, 2010 and serves as its Chief Executive Officer since June 12, 2020. Mr. Wang was responsible ...


CEO Compensation Analysis

Compensation vs Market: Kunpeng's total compensation ($USD141.37K) is below average for companies of similar size in the German market ($USD1.03M).

Compensation vs Earnings: Kunpeng's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Muqing Wang
Founder & Executive Chairman6.92yrsno data56.42% CN¥201.6m
Kunpeng Wang
Vice Chairman & CEO0.083yrCN¥988.00k0.050% CN¥179.2k
Zhubo Li
CFO & Executive Director10yrsCN¥1.01m0.063% CN¥225.9k
To Wan
VP & Executive Director4.67yrsCN¥660.00kno data
Raphael Ng
Compliance Managerno datano datano data
Wing Yee Yeung
Company Secretary3yrsno datano data

7.3yrs

Average Tenure

49.5yo

Average Age

Experienced Management: ZA0's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Muqing Wang
Founder & Executive Chairman6.92yrsno data56.42% CN¥201.6m
Kunpeng Wang
Vice Chairman & CEO0.083yrCN¥988.00k0.050% CN¥179.2k
Zhubo Li
CFO & Executive Director10yrsCN¥1.01m0.063% CN¥225.9k
To Wan
VP & Executive Director4.67yrsCN¥660.00kno data
Tin Yau Wong
Independent Non-Executive Director9.67yrsCN¥296.00kno data
Tong Cao
Independent Non-Executive Director4.25yrsCN¥296.00kno data
Tan Tan Wong
Independent Non-Executive Director3.58yrsCN¥296.00kno data

4.7yrs

Average Tenure

51yo

Average Age

Experienced Board: ZA0's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China ZhengTong Auto Services Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China ZhengTong Auto Services Holdings Limited
  • Ticker: ZA0
  • Exchange: DB
  • Founded: 1999
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: HK$3.163b
  • Listing Market Cap: HK$357.351m
  • Shares outstanding: 2.45b
  • Website: https://www.zhengtongauto.com

Number of Employees


Location

  • China ZhengTong Auto Services Holdings Limited
  • Baoze Plaza
  • No. 59 Baoze Plaza-Ring South Road
  • Beijing
  • Beijing Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1728SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2010
ZA0DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2010
CZAS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2010
1728SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2010
1728SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2010

Biography

China ZhengTong Auto Services Holdings Limited, an investment holding company, operates as a 4S dealership company in the People’s Republic of China. The company operates through four segments: 4S Dealership Business, Supply Chain Business, Financial Services Business, and Comprehensive Properties Business. It is involved in the sale of motor vehicles and automobile spare parts; and provision of maintenance and repair services. The company also provides motor-related and automobile related logistics services; and trades in lubricant oil and auto supplies. It focuses on the dealership of branded automobiles, including Porsche, Benz, BMW, Audi, Jaguar and Land Rover, Volvo, Cadillac, and Infiniti; and operates dealership stores of middle market brands, such as FAW-Volkswagen, Buick, Nissan, Toyota, Honda, and Hyundai. In addition, the company offers financial services, including auto financing, insurance brokerage, finance leasing, and other value-added services to auto customers and dealers. Further, it engages in the development and sale of real estate properties, property management, and pre-owned automobiles trading activities; e-commerce platform; and provision of consulting and automobile trading agency services. As of December 31, 2019, it operated 135 dealership outlets in 41 cities across 17 provinces and municipalities. The company was founded in 1999 and is headquartered in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 21:26
End of Day Share Price2020/07/15 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.