SEHK:1114

Stock Analysis Report

Brilliance China Automotive Holdings

Executive Summary

Brilliance China Automotive Holdings Limited, an investment holding company, manufactures and sells non-BMW automobiles and automotive components, and provides auto financing services in the People’s Republic of China and internationally.


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Brilliance China Automotive Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1114 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.8%

1114

3.0%

HK Auto

1.6%

HK Market


1 Year Return

13.8%

1114

9.9%

HK Auto

6.0%

HK Market

Return vs Industry: 1114 exceeded the Hong Kong Auto industry which returned 12.5% over the past year.

Return vs Market: 1114 exceeded the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

1114IndustryMarket
7 Day-3.8%3.0%1.6%
30 Day-2.0%8.1%4.4%
90 Day-11.3%11.3%8.6%
1 Year27.1%13.8%14.3%9.9%9.9%6.0%
3 Year-22.2%-31.4%11.0%1.5%27.7%14.7%
5 Year-36.5%-45.2%16.9%0.4%21.7%1.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Brilliance China Automotive Holdings undervalued compared to its fair value and its price relative to the market?

6.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1114 (HK$7.86) is trading above our estimate of fair value (HK$2.61)

Significantly Below Fair Value: 1114 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1114 is good value based on its PE Ratio (6.4x) compared to the Auto industry average (11.3x).

PE vs Market: 1114 is good value based on its PE Ratio (6.4x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 1114 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1114 is overvalued based on its PB Ratio (1x) compared to the HK Auto industry average (0.6x).


Next Steps

Future Growth

How is Brilliance China Automotive Holdings forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1114's forecast earnings growth (10.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 1114's earnings (10.1% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 1114's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1114's revenue (9.6% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 1114's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1114's Return on Equity is forecast to be low in 3 years time (18.7%).


Next Steps

Past Performance

How has Brilliance China Automotive Holdings performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1114 has a high level of non-cash earnings.

Growing Profit Margin: 1114's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: 1114's earnings have grown by 5.5% per year over the past 5 years.

Accelerating Growth: 1114's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1114 had negative earnings growth (-2.6%) over the past year, making it difficult to compare to the Auto industry average (-11.2%).


Return on Equity

High ROE: 1114's Return on Equity (14.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Brilliance China Automotive Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1114's short term assets (CN¥15.0B) exceed its short term liabilities (CN¥10.4B).

Long Term Liabilities: 1114's short term assets (CN¥15.0B) exceed its long term liabilities (CN¥206.9M).


Debt to Equity History and Analysis

Debt Level: 1114's debt to equity ratio (13%) is considered satisfactory.

Reducing Debt: 1114's debt to equity ratio has increased from 8.2% to 13% over the past 5 years.

Debt Coverage: 1114's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 1114's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 1114 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1114's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

What is Brilliance China Automotive Holdings's current dividend yield, its reliability and sustainability?

1.43%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%2.2%markettop25%6.0%industryaverage3.0%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: 1114's dividend (1.39%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 1114's dividend (1.39%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: 1114 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1114 has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.2%), 1114's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1114's dividends in 3 years are forecast to be thoroughly covered by earnings (9.1% payout ratio).


Next Steps

Management

What is the CEO of Brilliance China Automotive Holdings's salary, the management and board of directors tenure and is there insider trading?

9.8yrs

Average management tenure


CEO

Bingzhe Yan (56yo)

0.8yrs

Tenure

0

Mr. Yan Bingzhe has been Executive Director and Chief Executive Officer of Brilliance China Automotive Holdings Limited since April 12, 2019. Mr. Yan has been appointed as a Director of RBJAC and BBA. Mr.  ...


Management Age and Tenure

9.8yrs

Average Tenure

56yo

Average Age

Experienced Management: 1114's management team is seasoned and experienced (9.8 years average tenure).


Board Age and Tenure

15.3yrs

Average Tenure

57yo

Average Age

Experienced Board: 1114's board of directors are seasoned and experienced ( 15.3 years average tenure).


Insider Trading

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


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Ownership Breakdown

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


Management Team

  • Xiao An Wu (57yo)

    Chairman

    • Tenure: 17.6yrs
    • Compensation: CN¥8.12m
  • Eva Lam (59yo)

    Company Secretary

    • Tenure: 14.6yrs
  • Yu Huang (45yo)

    VP, Chief Accountant & Head of the Financial Department

    • Tenure: 12.7yrs
  • Zuming Qian (56yo)

    CFO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥1.96m
  • Wei Zhang (46yo)

    Executive Director

    • Tenure: 3.3yrs
  • Shen Yi

    President of Shanghai Shenhua Holdings

    • Tenure: 8yrs
  • Lisa Ng

    Executive Vice President

    • Tongfu Liu (54yo)

      Vice General Manager of Auto Business Unit of Huachen

      • Tenure: 3.8yrs
    • Bingzhe Yan (56yo)

      Executive Director & CEO

      • Tenure: 0.8yrs

    Board Members

    • Xiao An Wu (57yo)

      Chairman

      • Tenure: 17.6yrs
      • Compensation: CN¥8.12m
    • Jian Song (62yo)

      Independent Non-Executive Director

      • Tenure: 15.3yrs
      • Compensation: CN¥212.00k
    • Bo Jiang (61yo)

      Independent Non Executive Director

      • Tenure: 15.3yrs
      • Compensation: CN¥212.00k
    • Bingjin Xu (80yo)

      Independent Non-Executive Director

      • Tenure: 16.6yrs
      • Compensation: CN¥212.00k
    • Zuming Qian (56yo)

      CFO & Executive Director

      • Tenure: 3.3yrs
      • Compensation: CN¥1.96m
    • Wei Zhang (46yo)

      Executive Director

      • Tenure: 3.3yrs
    • Bingzhe Yan (56yo)

      Executive Director & CEO

      • Tenure: 0.8yrs

    Company Information

    Brilliance China Automotive Holdings Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Brilliance China Automotive Holdings Limited
    • Ticker: 1114
    • Exchange: SEHK
    • Founded: 1992
    • Industry: Automobile Manufacturers
    • Sector: Automobiles
    • Market Cap: HK$39.303b
    • Shares outstanding: 5.05b
    • Website: https://www.brillianceauto.com

    Number of Employees


    Location

    • Brilliance China Automotive Holdings Limited
    • Chater House
    • Suites 1602-05
    • Central
    • Hong Kong

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    1114SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 1999
    CBADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1999
    1114SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 1999
    1114SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 1999
    CBAWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJul 1999
    BCAU.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMar 2010

    Biography

    Brilliance China Automotive Holdings Limited, an investment holding company, manufactures and sells non-BMW automobiles and automotive components, and provides auto financing services in the People’s Republic of China and internationally. The company offers minibuses under the JinBei, Renault, Haise, Grand Haise, and Granse brands, as well as multi-purpose vehicles under the Huasong brand. Its automotive components include moldings, seats, axles, safety and airbag systems, and interior decoration products, as well as engines for minibuses, sedans, sport utility vehicles, light duty trucks, etc. The company also offers sport activity vehicles. Brilliance China Automotive Holdings Limited has strategic partnerships and alliances with BMW, Toyota, Magna, Bosch, Continental, Delphi, TI Automotive, and Johnson Controls. The company was incorporated in 1992 and is headquartered in Central, Hong Kong. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 12:37
    End of Day Share Price2020/01/20 00:00
    Earnings2019/06/30
    Annual Earnings2018/12/31


    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.