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

Flawless balance sheet and undervalued.


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


Market Performance


7 Day Return

4.1%

SEHK:1958

3.2%

HK Auto

3.3%

HK Market


1 Year Return

-30.1%

SEHK:1958

-17.3%

HK Auto

-12.3%

HK Market

1958 underperformed the Auto industry which returned -17.3% over the past year.

1958 underperformed the Market in Hong Kong which returned -12.3% over the past year.


Share holder returns

1958IndustryMarket
7 Day4.1%3.2%3.3%
30 Day-12.9%-8.9%-8.0%
90 Day1.8%-1.7%-5.5%
1 Year-26.8%-30.1%-13.8%-17.3%-9.2%-12.3%
3 Year-31.7%-38.5%-2.4%-10.5%11.5%0.8%
5 Yearn/a-8.3%-19.6%6.7%-10.5%

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 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

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 Based on Earnings

BAIC Motor is overvalued 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

BAIC Motor is good value based on expected growth next year.


Price Based on Value of Assets

BAIC Motor is good value based on assets compared to the HK Auto industry average.


Next Steps

Future Growth

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

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

BAIC Motor's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

BAIC Motor's earnings are expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).

BAIC Motor's revenue growth is positive but not above the Hong Kong market average.

BAIC Motor's earnings growth is positive but not above the Hong Kong market average.

BAIC Motor's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

BAIC Motor is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has BAIC Motor performed over the past 5 years?

2.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 -3.8%).


Return on Equity

BAIC Motor has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

BAIC Motor used its assets less efficiently than the HK Auto industry average last year based on Return on Assets.


Return on Capital Employed

BAIC Motor has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is BAIC Motor's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.4x debt.


Next Steps

Dividend

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

5.54%

Expected Dividend Yield


Dividend Yield and Payments Analysis

BAIC Motor's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

BAIC Motor's dividend is below the markets top 25% of dividend payers in Hong Kong (6.12%).

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

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 (3.1x coverage).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Hongliang Chen (54yo)

2.4yrs

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

Hongliang's remuneration is lower than average for companies of similar size in Hong Kong.

Hongliang's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.8yrs

Average Tenure

The average tenure for the BAIC Motor management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.7yrs

Average Tenure

54yo

Average Age

The tenure for the BAIC Motor board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCN¥29,951,75222 Jul 19
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Ownership Breakdown


Management Team

  • Hongliang Chen (54yo)

    CEO, President & Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥1.72m
  • Kenneth Lee

    Assistant Company Secretary

    • Tenure: 0.8yrs
  • Jianhui Wang (42yo)

    Company Secretary

    • Tenure: 0.6yrs

Board Members

  • Patrick Wong (71yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: CN¥120.00k
  • Fuquan Zhao (55yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: CN¥120.00k
  • Xiaolei Yan (43yo)

    Non-Executive Director

    • Tenure: 1.2yrs
  • Hubertus Troska (59yo)

    Non-Executive Director

    • Tenure: 5.8yrs
  • Heyi Xu (61yo)

    Chairman of the Board

    • Tenure: 8.9yrs
  • Yinfu Qiu (52yo)

    Non-Executive Director

    • Tenure: 6.2yrs
  • Robert Bao (52yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: CN¥120.00k
  • Kaixiang Liu (54yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: CN¥120.00k
  • Hongliang Chen (54yo)

    CEO, President & Executive Director

    • Tenure: 2.4yrs
    • Compensation: CN¥1.72m
  • Zhangfei Gu (52yo)

    Chairman of the Board of Supervisors

    • Tenure: 1.7yrs

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$35.348b
  • 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 Analysis2019/08/22 13:06
End of Day Share Price2019/08/22 00:00
Earnings2018/12/31
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.