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BAIC Motor

SEHK:1958
Snowflake Description

Very undervalued with flawless balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1958
SEHK
HK$42B
Market Cap
  1. Home
  2. HK
  3. Automobiles
Company description

BAIC Motor Corporation Limited, together with its subsidiaries, manufactures and sells passenger vehicles in the People’s Republic of China. The last earnings update was 90 days ago. More info.


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  • BAIC Motor has significant price volatility in the past 3 months.
1958 Share Price and Events
7 Day Returns
0.6%
SEHK:1958
2.7%
HK Auto
0.6%
HK Market
1 Year Returns
-21%
SEHK:1958
-9.7%
HK Auto
-4.5%
HK Market
1958 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
BAIC Motor (1958) 0.6% 5.6% -17.2% -21% -26.7% -
HK Auto 2.7% 1.9% -18.1% -9.7% 0.6% -9.3%
HK Market 0.6% 0.4% -7% -4.5% 17.8% 1.1%
1 Year Return vs Industry and Market
  • 1958 underperformed the Auto industry which returned -9.7% over the past year.
  • 1958 underperformed the Market in Hong Kong which returned -4.5% over the past year.
Price Volatility
1958
Industry
5yr Volatility vs Market

Value

 Is BAIC Motor undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of BAIC Motor to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for BAIC Motor.

SEHK:1958 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1958
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Auto Unlevered Beta Simply Wall St/ S&P Global 0.62
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.624 (1 + (1- 25%) (64.84%))
0.951
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.951 * 5.96%)
7.67%

Discounted Cash Flow Calculation for SEHK:1958 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for BAIC Motor is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1958 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 7.67%)
2020 15,092.60 Analyst x5 14,017.38
2021 14,814.00 Analyst x4 12,778.43
2022 14,709.69 Est @ -0.7% 11,784.50
2023 14,725.57 Est @ 0.11% 10,956.77
2024 14,825.19 Est @ 0.68% 10,245.03
2025 14,984.48 Est @ 1.07% 9,617.39
2026 15,187.22 Est @ 1.35% 9,053.09
2027 15,422.32 Est @ 1.55% 8,538.29
2028 15,682.11 Est @ 1.68% 8,063.59
2029 15,961.26 Est @ 1.78% 7,622.43
Present value of next 10 years cash flows CN¥102,676.91
SEHK:1958 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥15,961.26 × (1 + 2%) ÷ (7.67% – 2%)
CN¥287,260.92
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥287,260.92 ÷ (1 + 7.67%)10
CN¥137,183.84
SEHK:1958 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥102,676.91 + CN¥137,183.84
CN¥239,860.74
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥239,860.74 / 8,015.34
CN¥29.93
SEHK:1958 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1958)
1.135
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥29.93 x 1.135
HK$33.96
Value per share (HKD) From above. HK$33.96
Current discount Discount to share price of HK$5.05
= -1 x (HK$5.05 - HK$33.96) / HK$33.96
85.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price BAIC Motor is available for.
Intrinsic value
>50%
Share price is HK$5.05 vs Future cash flow value of HK$33.96
Current Discount Checks
For BAIC Motor to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • BAIC Motor's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • BAIC Motor's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for BAIC Motor's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are BAIC Motor's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1958 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.55
SEHK:1958 Share Price ** SEHK (2019-07-22) in HKD HK$5.05
SEHK:1958 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥4.45
Hong Kong Auto Industry PE Ratio Median Figure of 10 Publicly-Listed Auto Companies 8.96x
Hong Kong Market PE Ratio Median Figure of 1,512 Publicly-Listed Companies 10.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of BAIC Motor.

SEHK:1958 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1958 Share Price ÷ EPS (both in CNY)

= 4.45 ÷ 0.55

8.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BAIC Motor is good value based on earnings compared to the HK Auto industry average.
  • BAIC Motor is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does BAIC Motor's expected growth come at a high price?
Raw Data
SEHK:1958 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.12x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
12.2%per year
Hong Kong Auto Industry PEG Ratio Median Figure of 7 Publicly-Listed Auto Companies 0.79x
Hong Kong Market PEG Ratio Median Figure of 481 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:1958 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.12x ÷ 12.2%

0.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BAIC Motor is good value based on expected growth next year.
Price based on value of assets
What value do investors place on BAIC Motor's assets?
Raw Data
SEHK:1958 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥6.04
SEHK:1958 Share Price * SEHK (2019-07-22) in HKD HK$5.05
SEHK:1958 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥4.45
Hong Kong Auto Industry PB Ratio Median Figure of 13 Publicly-Listed Auto Companies 0.86x
Hong Kong Market PB Ratio Median Figure of 2,198 Publicly-Listed Companies 0.92x
SEHK:1958 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1958 Share Price ÷ Book Value per Share (both in CNY)

= 4.45 ÷ 6.04

0.74x

* Primary Listing of BAIC Motor.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BAIC Motor is good value based on assets compared to the HK Auto industry average.
X
Value checks
We assess BAIC Motor's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto industry average (and greater than 0)? (1 check)
  5. BAIC Motor has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is BAIC Motor expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is BAIC Motor expected to grow at an attractive rate?
  • BAIC Motor's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • BAIC Motor's earnings growth is expected to exceed the Hong Kong market average.
  • BAIC Motor's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1958 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1958 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 12.2%
SEHK:1958 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 7.9%
Hong Kong Auto Industry Earnings Growth Rate Market Cap Weighted Average 8.7%
Hong Kong Auto Industry Revenue Growth Rate Market Cap Weighted Average 5.9%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1958 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1958 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 192,381 27,175 6,352 15
2020-12-31 180,843 26,232 5,744 18
2019-12-31 167,041 24,661 5,112 19
SEHK:1958 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 151,920 21,733 4,317
2018-09-30 150,350 27,415 4,090
2018-06-30 144,324 21,382 4,057
2018-03-31 139,241 20,442 3,155
2017-12-31 134,159 19,503 2,253
2017-09-30 137,646 18,739 3,946
2017-06-30 133,897 22,563 4,941
2017-03-31 125,048 19,604 5,654
2016-12-31 116,199 16,646 6,367
2016-09-30 106,414 14,036 4,963
2016-06-30 96,628 11,426 3,559
2016-03-31 90,370 10,895 3,439

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • BAIC Motor's earnings are expected to grow by 12.2% yearly, however this is not considered high growth (20% yearly).
  • BAIC Motor's revenue is expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1958 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from BAIC Motor Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1958 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.79 1.10 0.49 13.00
2020-12-31 0.73 1.03 0.52 16.00
2019-12-31 0.65 0.84 0.51 16.00
SEHK:1958 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.55
2018-09-30 0.51
2018-06-30 0.53
2018-03-31 0.41
2017-12-31 0.30
2017-09-30
2017-06-30 0.65
2017-03-31 0.74
2016-12-31 0.84
2016-09-30 0.65
2016-06-30 0.47
2016-03-31 0.45

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • BAIC Motor is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess BAIC Motor's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
BAIC Motor has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has BAIC Motor performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare BAIC Motor's growth in the last year to its industry (Auto).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • BAIC Motor's year on year earnings growth rate has been positive over the past 5 years.
  • BAIC Motor's 1-year earnings growth exceeds its 5-year average (91.6% vs 2.4%)
  • BAIC Motor's earnings growth has exceeded the HK Auto industry average in the past year (91.6% vs -5.8%).
Earnings and Revenue History
BAIC Motor's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from BAIC Motor Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1958 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 151,920.39 4,317.47 17,001.64
2018-09-30 150,349.98 4,090.04 17,415.71
2018-06-30 144,323.63 4,056.70 17,685.13
2018-03-31 139,241.09 3,154.75 17,305.81
2017-12-31 134,158.54 2,252.81 16,926.50
2017-09-30 137,646.28 3,946.48 15,159.66
2017-06-30 133,897.25 4,941.34 16,764.65
2017-03-31 125,048.11 5,654.13 15,832.58
2016-12-31 116,198.98 6,366.93 14,900.52
2016-09-30 106,413.50 4,963.02 14,346.89
2016-06-30 96,628.02 3,559.10 13,793.26
2016-03-31 90,369.77 3,438.85 12,917.41
2015-12-31 84,111.53 3,318.60 12,041.56
2015-09-30 75,938.64 4,109.77 11,244.71
2015-06-30 67,765.75 4,900.94 10,447.86
2015-03-31 61,302.46 4,797.84 9,839.71
2014-12-31 56,370.31 4,510.81 9,101.81
2014-09-30 45,992.61 3,677.64 7,620.36
2014-06-30 35,614.91 2,844.47 6,138.90
2013-12-31 12,781.87 2,714.02 3,519.54
2012-12-31 3,519.67 3,498.10 1,504.03

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • BAIC Motor has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • BAIC Motor used its assets less efficiently than the HK Auto industry average last year based on Return on Assets.
  • BAIC Motor has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess BAIC Motor's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
BAIC Motor has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is BAIC Motor's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up BAIC Motor's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • BAIC Motor is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • BAIC Motor's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of BAIC Motor's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from BAIC Motor Company Filings, last reported 6 months ago.

SEHK:1958 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 69,237.78 23,863.24 35,406.67
2018-09-30 67,190.16 25,932.97 44,896.78
2018-06-30 63,520.88 32,061.73 44,553.04
2018-03-31 63,520.88 32,061.73 44,553.04
2017-12-31 59,640.92 31,645.01 36,832.55
2017-09-30
2017-06-30 54,123.37 35,150.99 35,522.07
2017-03-31 54,123.37 35,150.99 35,522.07
2016-12-31 58,033.32 35,378.72 36,238.70
2016-09-30 58,033.32 35,378.72 36,238.70
2016-06-30 50,930.20 32,566.07 26,618.24
2016-03-31 50,930.20 32,566.07 26,618.24
2015-12-31 47,069.40 30,266.02 23,946.50
2015-09-30 47,069.40 30,266.02 23,946.50
2015-06-30 45,218.61 26,762.18 20,884.46
2015-03-31 45,218.61 26,762.18 20,884.46
2014-12-31 41,968.62 29,918.25 21,923.30
2014-09-30 41,968.62 29,918.25 21,923.30
2014-06-30 31,921.35 22,292.21 14,460.68
2013-12-31 31,053.48 22,955.88 16,794.39
2012-12-31 16,012.27 11,696.24 2,932.44
  • BAIC Motor's level of debt (34.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (73.9% vs 34.5% today).
  • Debt is well covered by operating cash flow (91.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 138x coverage).
X
Financial health checks
We assess BAIC Motor's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. BAIC Motor has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.27%
Current annual income from BAIC Motor dividends. Estimated to be 5.42% next year.
If you bought HK$2,000 of BAIC Motor shares you are expected to receive HK$85 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • BAIC Motor's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • BAIC Motor's dividend is below the markets top 25% of dividend payers in Hong Kong (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1958 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
Hong Kong Auto Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 3.3%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1958 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.27 16.00
2020-12-31 0.24 19.00
2019-12-31 0.22 20.00
SEHK:1958 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-05-24 0.190 4.429
2018-05-15 0.100 2.133
2017-05-08 0.290 4.058
2016-04-22 0.150 2.451
2016-03-29 0.150 3.048
2015-05-14 0.300 5.147

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BAIC Motor has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • BAIC Motor has only been paying a dividend for 4 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of BAIC Motor's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess BAIC Motor's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can BAIC Motor afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. BAIC Motor has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Hongliang Chen
COMPENSATION CN¥1,717,000
AGE 54
TENURE AS CEO 2.3 years
CEO Bio

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 Vice President of BAIC Motor Corporation Limited from March 22, 2013 to March 7, 2017. Mr. Chen has more than 20 years of experience in the automobile industry. He has held various positions from January 1996 to September 2008, including the Deputy Director of the chassis plant (mainly responsible for the technical quality system), Head of the procurement department, director of the assembly plant and deputy general manager of NAVECO Ltd. He was the vice Secretary of the party committee of NAVECO Ltd. from September 2008 to February 2009; the deputy general manager of passenger vehicle department of BAIC Holding and Vice President of the Head office of operation and production, Chief Project Director, General Manager and Secretary of the party committee of Zhuzhou branch from February 2009 to January 2014; and Vice President of the Company, Senior Executive Vice President and the Secretary of the party committee of Beijing Benz from January 2014 to March 2017. Mr. Chen holds a Master's Degree in engineering and is a researcher-level senior engineer.

CEO Compensation
  • Hongliang's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Hongliang's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure of the BAIC Motor management team in years:

0.8
Average Tenure
  • The average tenure for the BAIC Motor management team is less than 2 years, this suggests a new team.
Management Team

Hongliang Chen

TITLE
CEO, President & Executive Director
COMPENSATION
CN¥2M
AGE
54
TENURE
2.3 yrs

Jianhui Wang

TITLE
Company Secretary
AGE
42
TENURE
0.5 yrs

Kenneth Lee

TITLE
Assistant Company Secretary
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the BAIC Motor board of directors in years:

4.6
Average Tenure
54
Average Age
  • The tenure for the BAIC Motor board of directors is about average.
Board of Directors

Heyi Xu

TITLE
Chairman of the Board
AGE
61
TENURE
8.8 yrs

Hongliang Chen

TITLE
CEO, President & Executive Director
COMPENSATION
CN¥2M
AGE
54
TENURE
2.1 yrs

Patrick Wong

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥120K
AGE
71
TENURE
4.6 yrs

Robert Bao

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥120K
AGE
52
TENURE
4.6 yrs

Zhangfei Gu

TITLE
Chairman of the Board of Supervisors
AGE
52
TENURE
1.6 yrs

Xiaolei Yan

TITLE
Non-Executive Director
AGE
43
TENURE
1.1 yrs

Yinfu Qiu

TITLE
Non-Executive Director
AGE
52
TENURE
6.1 yrs

Hubertus Troska

TITLE
Non-Executive Director
AGE
59
TENURE
5.7 yrs

Kaixiang Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥120K
AGE
54
TENURE
4.6 yrs

Fuquan Zhao

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥120K
AGE
55
TENURE
4.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
18. Jul 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 15. Jul 19 15. Jul 19 5,453,201 HK$5.03 HK$27,420,887
05. Jul 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 02. Jul 19 02. Jul 19 -941,478 HK$5.20 HK$-4,897,287
09. May 19 Sell BlackRock, Inc. Company 06. May 19 06. May 19 -4,193,360 HK$5.30 HK$-22,214,755
15. Mar 19 Sell GIC Pte. Ltd. Company 14. Mar 19 14. Mar 19 -2,138,500 HK$4.62 HK$-9,885,011
13. Mar 19 Sell BlackRock, Inc. Company 08. Mar 19 08. Mar 19 -25,546,000 HK$4.95 HK$-126,363,208
11. Mar 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 06. Mar 19 06. Mar 19 -6,102,000 HK$5.01 HK$-30,569,211
11. Mar 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 06. Mar 19 06. Mar 19 62,000 HK$5.01 HK$310,602
08. Mar 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 05. Mar 19 05. Mar 19 4,573,500 HK$4.95 HK$22,638,355
07. Mar 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 04. Mar 19 04. Mar 19 -3,478,678 HK$4.98 HK$-17,310,604
07. Mar 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 04. Mar 19 04. Mar 19 8,678 HK$4.98 HK$43,183
06. Mar 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 01. Mar 19 01. Mar 19 1,616,500 HK$5.07 HK$8,189,507
20. Nov 18 Sell BlackRock, Inc. Company 15. Nov 18 15. Nov 18 -3,150,000 HK$4.35 HK$-13,697,148
05. Nov 18 Buy GIC Pte. Ltd. Company 02. Nov 18 02. Nov 18 8,934,500 HK$4.51 HK$40,273,149
X
Management checks
We assess BAIC Motor's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. BAIC Motor has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is It Too Late To Buy BAIC Motor Corporation Limited (HKG:1958) At Its July Price?

BAIC Motor Corporation Limited (HKG:1958) is considered a high-growth stock, but its last closing price of HK$5.23 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … However, seeing as BAIC Motor is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. … A PE ratio of 8.36x and expected year-on-year earnings growth of 12% give BAIC Motor a very low PEG ratio of 0.71x.

Simply Wall St -

A Close Look At BAIC Motor Corporation Limited’s (HKG:1958) 23% ROCE

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for BAIC Motor: 0.23 = CN¥21b ÷ (CN¥172b - CN¥80b) (Based on the trailing twelve months to December 2018.) So, BAIC Motor has an ROCE of 23%. … What Are Current Liabilities, And How Do They Affect BAIC Motor's ROCE? … BAIC Motor's ROCE is boosted somewhat by its middling amount of current liabilities.

Simply Wall St -

Why We Like BAIC Motor Corporation Limited’s (HKG:1958) 23% Return On Capital Employed

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for BAIC Motor: 0.23 = CN¥21b ÷ (CN¥172b - CN¥80b) (Based on the trailing twelve months to December 2018.) So, BAIC Motor has an ROCE of 23%. … What Are Current Liabilities, And How Do They Affect BAIC Motor's ROCE? … BAIC Motor's ROCE is boosted somewhat by its middling amount of current liabilities.

Simply Wall St -

Does BAIC Motor Corporation Limited's (HKG:1958) 25% Earnings Growth Reflect The Long-Term Trend?

Let's see whether it is only owing to industry tailwinds, or if BAIC Motor has experienced some company-specific growth. … Furthermore, its return on assets (ROA) of 2.2% is below the HK Auto industry of 3.0%, indicating BAIC Motor's are utilized less efficiently. … You should continue to research BAIC Motor to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for 1958’s future growth?

Simply Wall St -

Should You Buy BAIC Motor Corporation Limited (HKG:1958) For Its Dividend?

BAIC Motor has been paying a dividend for the past four years. … While there may be fluctuations in the past , BAIC Motor's earnings per share have basically not grown from where they were five years ago. … It's great to see that BAIC Motor is paying out a low percentage of its earnings and cash flow.

Simply Wall St -

Should You Be Holding BAIC Motor Corporation Limited (HKG:1958)?

I've been keeping an eye on BAIC Motor Corporation Limited (HKG:1958) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe 1958 has a lot to offer. … is a company that has been able to sustain great financial health, trading at an attractive share price

Simply Wall St -

What Should We Expect From BAIC Motor Corporation Limited's (HKG:1958) Earnings In The Next Couple Of Years?

BAIC Motor Corporation Limited's (HKG:1958) most recent earnings announcement in December 2018a

Simply Wall St -

At HK$6.13, Is BAIC Motor Corporation Limited (HKG:1958) Worth Looking At Closely?

BAIC Motor Corporation Limited (HKG:1958), which is in the auto business, and is based in China,. … received a lot of attention from a substantial price increase on the SEHK over the last few months. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price?

Simply Wall St -

Is It Too Late To Buy BAIC Motor Corporation Limited (HKG:1958) At Its April Price?

BAIC Motor Corporation Limited (HKG:1958) closed yesterday at HK$5.74, which left some investors asking whether the high earnings potential can still be justified at this price. … See our latest analysis for BAIC Motor? … Analysts are predicting good growth prospects for BAIC Motor over the next couple of years

Simply Wall St -

Is BAIC Motor Corporation Limited’s (HKG:1958) 25% ROCE Any Good?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Company Info

Description

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. BAIC Motor Corporation Limited is a subsidiary of Beijing Automotive Group Co., Ltd.

Details
Name: BAIC Motor Corporation Limited
1958
Exchange: SEHK
Founded: 1958
HK$41,759,911,928
8,015,338,182
Website: http://www.baicmotor.com
Address: BAIC Motor Corporation Limited
No. 99 Shuanghe Street,
Shunyi District,
Beijing,
101300,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1958 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 19. Dec 2014
OTCPK BMCL.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 19. Dec 2014
DB 2B5 Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 19. Dec 2014
SHSC 1958 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 19. Dec 2014
SZSC 1958 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 19. Dec 2014
WBAG 2B5 Foreign Shares-Foreign Listed Wiener Boerse AG AT EUR 19. Dec 2014
OTCPK BCCM.Y UNSPONSORD ADR Pink Sheets LLC US USD 15. Dec 2015
Number of employees
Current staff
Staff numbers
20,431
BAIC Motor employees.
Industry
Automobile Manufacturers
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 13:01
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/04/23
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.