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

Fundamentals

Very undervalued with adequate balance sheet.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.3%

1958

-2.0%

HK Auto

-3.3%

HK Market


1 Year Return

8.3%

1958

-3.4%

HK Auto

0.01%

HK Market

Return vs Industry: 1958 exceeded the Hong Kong Auto industry which returned -3.4% over the past year.

Return vs Market: 1958 exceeded the Hong Kong Market which returned 0% over the past year.


Shareholder returns

1958IndustryMarket
7 Day-7.3%-2.0%-3.3%
30 Day-5.4%3.7%0.1%
90 Day10.6%14.5%5.3%
1 Year13.4%8.3%0.2%-3.4%3.6%0.01%
3 Year-27.6%-34.8%15.7%5.9%20.9%8.8%
5 Yearn/a11.9%-2.2%20.5%0.5%

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$4.71) is trading below our estimate of fair value (HK$49.06)

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 (9.7x) compared to the Auto industry average (10.4x).

PE vs Market: 1958 is good value based on its PE Ratio (9.7x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 1958 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 1958 is good value based on its PB Ratio (0.7x) compared to the HK Auto industry average (0.7x).


Next Steps

Future Growth

How is BAIC Motor forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1958's forecast earnings growth (17.9% per year) is above the savings rate (2%).

Earnings vs Market: 1958's earnings (17.9% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

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

Revenue vs Market: 1958's revenue (6.3% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 1958's revenue (6.3% 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 (9.6%).


Next Steps

Past Performance

How has BAIC Motor performed over the past 5 years?

-0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1958 has high quality earnings.

Growing Profit Margin: 1958's current net profit margins (2.2%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: 1958's earnings have declined by -0.9% 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 (-13.6%) over the past year, making it difficult to compare to the Auto industry average (-11.2%).


Return on Equity

High ROE: 1958's Return on Equity (20.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BAIC Motor's financial position?


Financial Position Analysis

Short Term Liabilities: 1958's short term assets (CN¥100.4B) do not cover its short term liabilities (CN¥105.5B)

Long Term Liabilities: 1958's short term assets (100.4B) exceeds its long term liabilities (18.9B)


Debt to Equity History and Analysis

Debt Level: 1958's debt to equity ratio (42.1%) is considered high

Reducing Debt: 1958's debt to equity ratio has reduced from 69.9% to 42.1% over the past 5 years.

Debt Coverage: 1958's debt is well covered by operating cash flow (76.3%).

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 3.6x debt).


Next Steps

Dividend

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

4.50%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%2.2%markettop25%6.3%industryaverage3.1%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: 1958's dividend (4.5%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.23%).

High Dividend: 1958's dividend (4.5%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.31%).


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 (43.4%), 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 (33.5% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Hongliang Chen (54yo)

2.7yrs

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 ($USD244.48K) is below average for companies of similar size in the Hong Kong market ($USD600.87K).

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


Management Age and Tenure

1.1yrs

Average Tenure

Experienced Management: 1958's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

4.9yrs

Average Tenure

54yo

Average Age

Experienced Board: 1958's board of directors are considered experienced (4.9 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

BuyCN¥29,951,75222 Jul 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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SellCN¥17,310,60407 Mar 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
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Max PriceCN¥4.98
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Shares1,616,500
Max PriceCN¥5.07
SellCN¥13,697,14820 Nov 18
BlackRock, Inc.
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Max PriceCN¥4.35

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.


Management Team

  • Hongliang Chen (54yo)

    CEO, President & Executive Director

    • Tenure: 2.7yrs
    • Compensation: CN¥1.72m
  • Kenneth Lee

    Assistant Company Secretary

    • Tenure: 1.1yrs
  • Jianhui Wang (42yo)

    Company Secretary

    • Tenure: 0.8yrs

Board Members

  • Patrick Wong (71yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: CN¥120.00k
  • Fuquan Zhao (55yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: CN¥120.00k
  • Xiaolei Yan (43yo)

    Non-Executive Director

    • Tenure: 1.4yrs
  • Hubertus Troska (59yo)

    Non-Executive Director

    • Tenure: 6yrs
  • Heyi Xu (61yo)

    Chairman of the Board

    • Tenure: 9.2yrs
  • Yinfu Qiu (52yo)

    Non-Executive Director

    • Tenure: 6.4yrs
  • Robert Bao (52yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: CN¥120.00k
  • Kaixiang Liu (54yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: CN¥120.00k
  • Hongliang Chen (54yo)

    CEO, President & Executive Director

    • Tenure: 2.7yrs
    • Compensation: CN¥1.72m
  • Zhangfei Gu (52yo)

    Chairman of the Board of Supervisors

    • Tenure: 1.9yrs

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$38.073b
  • 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 vehi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 12:54
End of Day Share Price2019/11/14 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.