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

Fundamentals

Flawless balance sheet, undervalued and pays a dividend.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.6%

1122

3.9%

HK Auto

2.2%

HK Market


1 Year Return

-10.6%

1122

-5.1%

HK Auto

-1.3%

HK Market

Return vs Industry: 1122 underperformed the Hong Kong Auto industry which returned -5.1% over the past year.

Return vs Market: 1122 underperformed the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

1122IndustryMarket
7 Day1.6%3.9%2.2%
30 Day-4.1%-6.4%-2.9%
90 Day-8.8%-1.2%-5.8%
1 Year-2.5%-10.6%-1.4%-5.1%2.3%-1.3%
3 Year-3.7%-23.8%0.3%-8.3%15.6%3.9%
5 Year16.7%-20.2%8.3%-4.9%20.1%0.06%

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: 1122 (HK$1.86) is trading below our estimate of fair value (HK$4.52)

Significantly Undervalued: 1122 is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: 1122 is good value based on its PE Ratio (8.9x) compared to the Auto industry average (10.3x).

PE vs Market: 1122 is good value based on its PE Ratio (8.9x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: 1122 is good value based on its PB Ratio (0.5x) compared to the HK Auto industry average (0.7x).


Next Steps

Future Growth

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

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 1122's forecast earnings growth (13.1% per year) is above the savings rate (2%).

Earnings vs Market: 1122's earnings (13.1% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: 1122's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1122's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1122's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if 1122's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Qingling Motors performed over the past 5 years?

0.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1122's earnings have grown by 0.3% per year over the past 5 years.

Accelerating Growth: 1122's earnings growth over the past year (13.2%) exceeds its 5-year average (0.3% per year).

Earnings vs Industry: 1122 earnings growth over the past year (13.2%) exceeded the Auto industry -11.2%.


Return on Equity

High ROE: 1122's Return on Equity (6%) is considered low.


Return on Assets

ROA vs Industry: 1122's Return on Assets is below or equal to the Auto industry average last year.


Return on Capital Employed

ROCE Improving: 1122's Return on Capital Employed has declined over the past 3 years.


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) exceeds its short term liabilities (CN¥2.7B)

Long Term Liabilities: 1122's short term assets (9.1B) exceeds its long term liabilities (9.6M)


Debt to Equity History and Analysis

Debt Level: 1122 is debt free.

Reducing Debt: 1122 had no debt 5 years ago.

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?

9.52%

Current Dividend Yield


Dividend Yield vs Market

company9.5%marketbottom25%2.3%markettop25%6.3%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 1122's dividend (9.52%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1122's dividend (9.52%) is in the top 25% of dividend payers in the Hong Kong market (6.35%)

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: At its current payout ratio (84.3%), 1122's payments are 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

What is the CEO of Qingling Motors's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Shuichi Hayashi (61yo)

1.4yrs

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 ($USD41.83K) is too low to compare against companies of similar size in the Hong Kong market ($USD302.46K).

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


Management Age and Tenure

1.4yrs

Average Tenure

53yo

Average Age

Experienced Management: 1122's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

3.9yrs

Average Tenure

55yo

Average Age

Experienced Board: 1122's board of directors are considered experienced (3.9 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.


Recent Insider Transactions

SellCN¥672,00302 Oct 19
Allianz Asset Management AG
EntityCompany
Shares358,000
Max PriceCN¥1.88
BuyCN¥1,829,85509 Sep 19
Edgbaston Investment Partners LLP
EntityCompany
Shares974,000
Max PriceCN¥1.88
BuyCN¥737,88107 Aug 19
Allianz Asset Management AG
EntityCompany
Shares400,000
Max PriceCN¥1.84

Ownership Breakdown


Management Team

  • Michael Tung (56yo)

    Company Secretary

    • Tenure: 25.5yrs
  • Bin Lei (44yo)

    Company Secretary & Supervisor

    • Tenure: 7.3yrs
    • Compensation: CN¥138.00k
  • Maegaki Keiichiro (61yo)

    Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥114.00k
  • Juxing Li (53yo)

    Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥507.00k
  • Song Xu (51yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥507.00k
  • Yuguang Luo (49yo)

    Chairman

    • Tenure: 2.8yrs
    • Compensation: CN¥621.00k
  • Katsumi Adachi (57yo)

    Executive Director

    • Tenure: 0.3yrs
  • Shuichi Hayashi (61yo)

    Vice Chairman & GM

    • Tenure: 1.4yrs
    • Compensation: CN¥296.52k
  • Xiaodong Li (52yo)

    Executive Director

    • Tenure: 0.4yrs

Board Members

  • Tao Long (67yo)

    Independent Non-Executive Director

    • Tenure: 25.5yrs
    • Compensation: CN¥120.00k
  • Xiaojiang Song (68yo)

    Independent Non-Executive Director

    • Tenure: 25.5yrs
    • Compensation: CN¥120.00k
  • Bin Lei (44yo)

    Company Secretary & Supervisor

    • Tenure: 7.3yrs
    • Compensation: CN¥138.00k
  • Maegaki Keiichiro (61yo)

    Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥114.00k
  • Juxing Li (53yo)

    Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥507.00k
  • Song Xu (51yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥507.00k
  • Yuguang Luo (49yo)

    Chairman

    • Tenure: 2.8yrs
    • Compensation: CN¥621.00k
  • Katsumi Adachi (57yo)

    Executive Director

    • Tenure: 0.3yrs
  • Shuichi Hayashi (61yo)

    Vice Chairman & GM

    • Tenure: 1.4yrs
    • Compensation: CN¥296.52k
  • Xiaodong Li (52yo)

    Executive Director

    • Tenure: 0.4yrs

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$4.617b
  • 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 mu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 12:49
End of Day Share Price2019/10/11 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.

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