SEHK:1122

Stock Analysis Report

Executive Summary

Qingling Motors Co., Ltd., together with its subsidiaries, produces and sells Isuzu trucks in the People's Republic of China.


Snowflake Analysis

Flawless balance sheet average dividend payer.

Share Price & News

How has Qingling Motors's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1122's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.2%

1122

-7.6%

HK Auto

0.2%

HK Market


1 Year Return

-34.2%

1122

-32.0%

HK Auto

-22.0%

HK Market

Return vs Industry: 1122 underperformed the Hong Kong Auto industry which returned -32% over the past year.

Return vs Market: 1122 underperformed the Hong Kong Market which returned -22% over the past year.


Shareholder returns

1122IndustryMarket
7 Day-3.2%-7.6%0.2%
30 Day-9.6%-22.6%-10.8%
90 Day-21.1%-24.5%-16.5%
1 Year-28.3%-34.2%-29.3%-32.0%-19.1%-22.0%
3 Year-24.8%-40.5%-26.2%-32.5%-3.7%-13.4%
5 Year-29.3%-51.6%-35.1%-43.9%-15.2%-28.8%

Price Volatility Vs. Market

How volatile is Qingling Motors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Qingling Motors undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1122 (HK$1.5) is trading below our estimate of fair value (HK$6.89)

Significantly Below Fair Value: 1122 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1122 is poor value based on its PE Ratio (9.8x) compared to the Auto industry average (9.1x).

PE vs Market: 1122 is poor value based on its PE Ratio (9.8x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1122's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1122 is overvalued based on its PB Ratio (0.4x) compared to the HK Auto industry average (0.4x).


Next Steps

Future Growth

How is Qingling Motors forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.2%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Qingling Motors has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Qingling Motors performed over the past 5 years?

-2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1122 has high quality earnings.

Growing Profit Margin: 1122's current net profit margins (7.3%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: 1122's earnings have declined by -2.5% per year over the past 5 years.

Accelerating Growth: 1122's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1122 had negative earnings growth (-23.9%) over the past year, making it difficult to compare to the Auto industry average (-13.7%).


Return on Equity

High ROE: 1122's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is Qingling Motors's financial position?


Financial Position Analysis

Short Term Liabilities: 1122's short term assets (CN¥9.1B) exceed its short term liabilities (CN¥2.8B).

Long Term Liabilities: 1122's short term assets (CN¥9.1B) exceed its long term liabilities (CN¥67.7M).


Debt to Equity History and Analysis

Debt Level: 1122 is debt free.

Reducing Debt: 1122 has not had any debt for past 5 years.

Debt Coverage: 1122 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1122 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1122 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1122's debt is covered by short term assets.


Next Steps

Dividend

What is Qingling Motors's current dividend yield, its reliability and sustainability?

11.66%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 1122's dividend (11.66%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.6%).

High Dividend: 1122's dividend (11.66%) is in the top 25% of dividend payers in the Hong Kong market (7.27%)


Stability and Growth of Payments

Stable Dividend: 1122's dividends per share have been stable in the past 10 years.

Growing Dividend: 1122's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (114.3%), 1122's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Shuichi Hayashi (61yo)

1.92s

Tenure

CN¥296,522

Compensation

Mr. Shuichi Hayashi has been Executive Director, Vice Chairman and General Manager of Qingling Motors Co., Ltd. since May 30, 2018. 


CEO Compensation Analysis

Compensation vs Market: Shuichi's total compensation ($USD41.82K) is below average for companies of similar size in the Hong Kong market ($USD359.79K).

Compensation vs Earnings: Insufficient data to compare Shuichi's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Yuguang Luo
Chairman3.33yrsCN¥621.00kno data
Shuichi Hayashi
Vice Chairman & GM1.92yrsCN¥296.52kno data
Maegaki Keiichiro
Executive Director4.92yrsCN¥114.00kno data
Juxing Li
Executive Director4.92yrsCN¥507.00kno data
Song Xu
Executive Director3.83yrsCN¥507.00kno data
Bin Lei
CFO, Company Secretary & Supervisor7.83yrsCN¥138.00kno data
Xiaodong Li
Executive Director0.92yrno datano data
Katsumi Adachi
Executive Director0.75yrno datano data
Tat Chiu Tung
Company Secretary26yrsno datano data

1.9yrs

Average Tenure

53yo

Average Age

Experienced Management: 1122's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yuguang Luo
Chairman3.33yrsCN¥621.00kno data
Shuichi Hayashi
Vice Chairman & GM1.92yrsCN¥296.52kno data
Maegaki Keiichiro
Executive Director4.92yrsCN¥114.00kno data
Juxing Li
Executive Director4.92yrsCN¥507.00kno data
Song Xu
Executive Director3.83yrsCN¥507.00kno data
Bin Lei
CFO, Company Secretary & Supervisor7.83yrsCN¥138.00kno data
Xiaodong Li
Executive Director0.92yrno datano data
Katsumi Adachi
Executive Director0.75yrno datano data
Tao Long
Independent Non-Executive Director26yrsCN¥120.00kno data
Xiaojiang Song
Independent Non-Executive Director26yrsCN¥120.00kno data

4.4yrs

Average Tenure

55yo

Average Age

Experienced Board: 1122's board of directors are considered experienced (4.4 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

Qingling Motors Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Qingling Motors Co., Ltd.
  • Ticker: 1122
  • Exchange: SEHK
  • Founded:
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: HK$3.723b
  • Shares outstanding: 2.48b
  • Website: https://www.qingling.com.cn

Number of Employees


Location

  • Qingling Motors Co., Ltd.
  • 1 Xiexing Cun
  • Zhong Liang Shan
  • Chongqing
  • 400052
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QGLH.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDAug 1994
1122SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDAug 1994
QINDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURAug 1994

Biography

Qingling Motors Co., Ltd., together with its subsidiaries, produces and sells Isuzu trucks in the People's Republic of China. The company offers light, medium, and heavy-duty trucks; pick-up trucks; and multi-purpose vehicles, as well as chassis and automobile parts, engines, accessories, and others. It is also involved in the production of moulds for the manufacture of automobile parts. Qingling Motors Co., Ltd. also exports its products. The company is based in Chongqing, the People's Republic of China. Qingling Motors Co., Ltd. is a subsidiary of Qingling Motors (Group) Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 13:15
End of Day Share Price2020/04/03 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.