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

Fundamentals

Fair value with mediocre balance sheet.

Risks

  • Brilliance China Automotive Holdings has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

2.2%

SEHK:1114

1.1%

HK Auto

-0.6%

HK Market


1 Year Return

-23.6%

SEHK:1114

-9.3%

HK Auto

-6.7%

HK Market

1114 underperformed the Auto industry which returned -4.5% over the past year.

1114 underperformed the Market in Hong Kong which returned -5.3% over the past year.


Share holder returns

1114IndustryMarket
7 Day2.2%1.1%-0.6%
30 Day25.7%11.0%3.0%
90 Day9.7%1.9%-4.9%
1 Year-13.8%-23.6%-5.4%-9.3%-3.3%-6.7%
3 Year22.5%6.7%3.8%-5.1%15.5%3.7%
5 Year-21.5%-32.9%7.3%-6.0%16.8%-2.7%

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 based on future cash flows and its price relative to the stock market?

7.84x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Brilliance China Automotive Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Brilliance China Automotive Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Brilliance China Automotive Holdings is good value based on earnings compared to the HK Auto industry average.

Brilliance China Automotive Holdings is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Brilliance China Automotive Holdings is good value based on expected growth next year.


Price Based on Value of Assets

Brilliance China Automotive Holdings is overvalued based on assets compared to the HK Auto industry average.


Next Steps

Future Growth

How is Brilliance China Automotive Holdings expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Brilliance China Automotive Holdings's revenue is expected to grow by 12.2% yearly, however this is not considered high growth (20% yearly).

Brilliance China Automotive Holdings's earnings are expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).

Brilliance China Automotive Holdings's revenue growth is expected to exceed the Hong Kong market average.

Brilliance China Automotive Holdings's earnings growth is positive but not above the Hong Kong market average.

Brilliance China Automotive Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Brilliance China Automotive Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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


Past Earnings Growth Analysis

Brilliance China Automotive Holdings's year on year earnings growth rate has been positive over the past 5 years.

Brilliance China Automotive Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Brilliance China Automotive Holdings's 1-year earnings growth is negative, it can't be compared to the HK Auto industry average.


Return on Equity

Brilliance China Automotive Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Brilliance China Automotive Holdings used its assets more efficiently than the HK Auto industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Brilliance China Automotive Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Brilliance China Automotive Holdings's financial position?


Financial Position Analysis

Brilliance China Automotive Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Brilliance China Automotive Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Brilliance China Automotive Holdings's level of debt (13%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (8.2% vs 13% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on Brilliance China Automotive Holdings's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

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?

1.64%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Brilliance China Automotive Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Brilliance China Automotive Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.17%).

Brilliance China Automotive Holdings is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.

Brilliance China Automotive Holdings is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Brilliance China Automotive Holdings's dividends as it is not paying a notable one for Hong Kong.


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (10.7x coverage).


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?

9.4yrs

Average management tenure


CEO

Bingzhe Yan (56yo)

0.4yrs

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

9.4yrs

Average Tenure

56yo

Average Age

The average tenure for the Brilliance China Automotive Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

15.0yrs

Average Tenure

57yo

Average Age

The average tenure for the Brilliance China Automotive Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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Ownership Breakdown


Management Team

  • Xiao An Wu (57yo)

    Chairman

    • Tenure: 17.3yrs
    • Compensation: CN¥8.12m
  • Eva Lam (59yo)

    Company Secretary

    • Tenure: 14.3yrs
  • Yu Huang (45yo)

    VP, Chief Accountant & Head of the Financial Department

    • Tenure: 12.3yrs
  • Zuming Qian (56yo)

    CFO & Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥1.96m
  • Wei Zhang (46yo)

    Executive Director

    • Tenure: 3yrs
  • Shen Yi

    President of Shanghai Shenhua Holdings

    • Tenure: 7.7yrs
  • Lisa Ng

    Executive Vice President

    • Tenure: 0yrs
  • Tongfu Liu (54yo)

    Vice General Manager of Auto Business Unit of Huachen

    • Tenure: 3.5yrs
  • Bingzhe Yan (56yo)

    Executive Director & CEO

    • Tenure: 0.4yrs

Board Members

  • Xiao An Wu (57yo)

    Chairman

    • Tenure: 17.3yrs
    • Compensation: CN¥8.12m
  • Jian Song (62yo)

    Independent Non-Executive Director

    • Tenure: 15yrs
    • Compensation: CN¥212.00k
  • Bo Jiang (61yo)

    Independent Non Executive Director

    • Tenure: 15yrs
    • Compensation: CN¥212.00k
  • Bingjin Xu (80yo)

    Independent Non-Executive Director

    • Tenure: 16.3yrs
    • Compensation: CN¥212.00k
  • Zuming Qian (56yo)

    CFO & Executive Director

    • Tenure: 3yrs
    • Compensation: CN¥1.96m
  • Wei Zhang (46yo)

    Executive Director

    • Tenure: 3yrs
  • Bingzhe Yan (56yo)

    Executive Director & CEO

    • Tenure: 0.4yrs

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$47.325b
  • 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 Repub ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 12:34
End of Day Share Price2019/09/18 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.