SEHK:1958

Stock Analysis Report

Executive Summary

BAIC Motor Corporation Limited, together with its subsidiaries, manufactures and sells passenger vehicles in the People’s Republic of China.


Snowflake Analysis

Very undervalued with excellent balance sheet.

Share Price & News

How has BAIC Motor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1958's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.4%

1958

-5.0%

HK Auto

1.1%

HK Market


1 Year Return

-50.7%

1958

-31.0%

HK Auto

-21.6%

HK Market

Return vs Industry: 1958 underperformed the Hong Kong Auto industry which returned -22.6% over the past year.

Return vs Market: 1958 underperformed the Hong Kong Market which returned -20.4% over the past year.


Shareholder returns

1958IndustryMarket
7 Day-6.4%-5.0%1.1%
30 Day-26.9%-22.5%-10.2%
90 Day-33.8%-23.4%-16.1%
1 Year-48.3%-50.7%-28.3%-31.0%-18.8%-21.6%
3 Year-62.6%-66.4%-26.0%-32.4%-3.1%-12.8%
5 Year-65.1%-70.8%-32.9%-42.0%-13.5%-27.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is BAIC Motor 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: 1958 (HK$2.96) is trading below our estimate of fair value (HK$29.91)

Significantly Below Fair Value: 1958 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1958 is good value based on its PE Ratio (5.5x) compared to the Auto industry average (9.2x).

PE vs Market: 1958 is good value based on its PE Ratio (5.5x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1958 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1958 is good value based on its PB Ratio (0.4x) compared to the HK Auto industry average (0.5x).


Next Steps

Future Growth

How is BAIC Motor forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1958's forecast earnings growth (9.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 1958's earnings (9.1% per year) are forecast to grow slower than the Hong Kong market (11.8% per year).

High Growth Earnings: 1958's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1958's revenue (6.4% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 1958's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1958's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has BAIC Motor performed over the past 5 years?

-4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1958 has high quality earnings.

Growing Profit Margin: 1958's current net profit margins (2.3%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: 1958's earnings have declined by -4.2% per year over the past 5 years.

Accelerating Growth: 1958's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1958 had negative earnings growth (-8%) over the past year, making it difficult to compare to the Auto industry average (-8%).


Return on Equity

High ROE: 1958's Return on Equity (19.7%) is considered low.


Next Steps

Financial Health

How is BAIC Motor's financial position?


Financial Position Analysis

Short Term Liabilities: 1958's short term assets (CN¥98.1B) do not cover its short term liabilities (CN¥104.3B).

Long Term Liabilities: 1958's short term assets (CN¥98.1B) exceed its long term liabilities (CN¥16.3B).


Debt to Equity History and Analysis

Debt Level: 1958's debt to equity ratio (32.4%) is considered satisfactory.

Reducing Debt: 1958's debt to equity ratio has reduced from 71.1% to 32.4% over the past 5 years.

Debt Coverage: 1958's debt is well covered by operating cash flow (115.4%).

Interest Coverage: 1958 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1958 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1958's debt is covered by short term assets (assets are 4.2x debt).


Next Steps

Dividend

What is BAIC Motor's current dividend yield, its reliability and sustainability?

6.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1958's dividend (6.29%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.56%).

High Dividend: 1958's dividend (6.29%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.14%).


Stability and Growth of Payments

Stable Dividend: 1958 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1958 has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.3%), 1958's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1958's dividends in 3 years are forecast to be well covered by earnings (30% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Hongliang Chen (54yo)

3.08s

Tenure

CN¥1,717,000

Compensation

Mr. Hongliang Chen has been the President and Chief Executive officer of BAIC Motor Corporation Limited since March 6, 2017 and also has been its Executive Director since June 23, 2017. Mr. Chen served as  ...


CEO Compensation Analysis

Compensation vs Market: Hongliang's total compensation ($USD242.45K) is below average for companies of similar size in the Hong Kong market ($USD494.87K).

Compensation vs Earnings: Hongliang's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hongliang Chen
CEO, President & Executive Director3.08yrsCN¥1.72mno data
Jianhui Wang
Company Secretary1.25yrsno datano data
Kwok Fai Lee
Assistant Company Secretary1.5yrsno datano data

1.5yrs

Average Tenure

Experienced Management: 1958's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Hongliang Chen
CEO, President & Executive Director3.08yrsCN¥1.72mno data
Lung Tak Wong
Independent Non-Executive Director5.33yrsCN¥120.00kno data
Fuquan Zhao
Independent Non-Executive Director5.33yrsCN¥120.00kno data
Xiaolei Yan
Non-Executive Director1.83yrsno data0.000060% CN¥14.2k
Hubertus Troska
Non-Executive Director6.42yrsno datano data
Heyi Xu
Chairman of the Board9.58yrsno datano data
Yinfu Qiu
Non-Executive Director6.83yrsno datano data
Xiaochen Bao
Independent Non-Executive Director5.33yrsCN¥120.00kno data
Kaixiang Liu
Independent Non-Executive Director5.33yrsCN¥120.00kno data
Zhangfei Gu
Chairman of the Board of Supervisors2.33yrsno datano data

5.3yrs

Average Tenure

54yo

Average Age

Experienced Board: 1958's board of directors are considered experienced (5.3 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

BAIC Motor Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BAIC Motor Corporation Limited
  • Ticker: 1958
  • Exchange: SEHK
  • Founded: 1958
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: HK$23.725b
  • Shares outstanding: 8.02b
  • Website: https://www.baicmotor.com

Number of Employees


Location

  • BAIC Motor Corporation Limited
  • No. 99 Shuanghe Street
  • Shunyi District
  • Beijing
  • 101300
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1958SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2014
2B5DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2014
1958SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2014
1958SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2014
BMCL.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2014
2B5WBAG (Wiener Boerse AG)YesForeign Shares-Foreign ListedATEURDec 2014
BCCM.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDDec 2015

Biography

BAIC Motor Corporation Limited, together with its subsidiaries, manufactures and sells passenger vehicles in the People’s Republic of China. The company offers luxury passenger cars, luxury commercial vehicles, middle-end and high-end passenger cars, and self-owned passenger cars, as well as electric passenger cars. It also provides engines, and powertrain and other parts and components. The company sells its products under the Beijing Brand, Beijing Benz, Beijing Hyundai, and Fujian Benz names. It is also involved in the car financing and automobile aftermarket-related businesses, as well as investment management business. The company was founded in 1958 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 Analysis2020/04/02 13:23
End of Day Share Price2020/04/02 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.