SEHK:2333

Stock Analysis Report

Executive Summary

Great Wall Motor Company Limited manufactures and sells automobiles, and automotive parts and components.


Snowflake Analysis

Excellent balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2333's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.3%

2333

-5.0%

HK Auto

1.1%

HK Market


1 Year Return

-26.9%

2333

-31.0%

HK Auto

-21.6%

HK Market

Return vs Industry: 2333 exceeded the Hong Kong Auto industry which returned -31% over the past year.

Return vs Market: 2333 underperformed the Hong Kong Market which returned -21.6% over the past year.


Shareholder returns

2333IndustryMarket
7 Day-3.3%-5.0%1.1%
30 Day-16.6%-22.5%-10.2%
90 Day-19.9%-23.4%-16.1%
1 Year-22.4%-26.9%-28.3%-31.0%-18.8%-21.6%
3 Year-40.1%-47.7%-26.0%-32.4%-3.1%-12.8%
5 Year-70.3%-75.7%-32.9%-42.0%-13.5%-27.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Great Wall 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: 2333 (HK$4.72) is trading below our estimate of fair value (HK$19.61)

Significantly Below Fair Value: 2333 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2333 is good value based on its PE Ratio (8.8x) compared to the Auto industry average (9.4x).

PE vs Market: 2333 is good value based on its PE Ratio (8.8x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2333 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 2333 is overvalued based on its PB Ratio (0.7x) compared to the HK Auto industry average (0.4x).


Next Steps

Future Growth

How is Great Wall Motor forecast to perform in the next 1 to 3 years based on estimates from 34 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2333's forecast earnings growth (7.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 2333's earnings (7.5% per year) are forecast to grow slower than the Hong Kong market (11.5% per year).

High Growth Earnings: 2333's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2333's revenue (4.6% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 2333's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2333's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has Great Wall Motor performed over the past 5 years?

-16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2333 has high quality earnings.

Growing Profit Margin: 2333's current net profit margins (4.7%) are lower than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: 2333's earnings have declined by -16.1% per year over the past 5 years.

Accelerating Growth: 2333's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2333 had negative earnings growth (-13.7%) over the past year, making it difficult to compare to the Auto industry average (-13.7%).


Return on Equity

High ROE: 2333's Return on Equity (8.5%) is considered low.


Next Steps

Financial Health

How is Great Wall Motor's financial position?


Financial Position Analysis

Short Term Liabilities: 2333's short term assets (CN¥55.5B) exceed its short term liabilities (CN¥38.7B).

Long Term Liabilities: 2333's short term assets (CN¥55.5B) exceed its long term liabilities (CN¥7.1B).


Debt to Equity History and Analysis

Debt Level: 2333's debt to equity ratio (9.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 2333's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 2333's debt is well covered by operating cash flow (255.9%).

Interest Coverage: 2333 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 2333 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2333's debt is covered by short term assets (assets are 10.8x debt).


Next Steps

Dividend

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

6.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2333's dividend (6.72%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.57%).

High Dividend: 2333's dividend (6.72%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.33%).


Stability and Growth of Payments

Stable Dividend: 2333's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2333's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.9%), 2333's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2333's dividends in 3 years are forecast to be well covered by earnings (39.3% payout ratio).


Next Steps

Management

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

11.8yrs

Average management tenure


CEO

Feng Wang (48yo)

17.42s

Tenure

CN¥5,403,000

Compensation

Ms. Feng Ying Wang serves as Vice Chairman at Great Wall Motor Company Ltd. (formerly, Great Wall Automobile Holding Co. Ltd.) and has been its General Manager since November 2002. Ms. Wang is responsible  ...


CEO Compensation Analysis

Compensation vs Market: Feng's total compensation ($USD762.46K) is about average for companies of similar size in the Hong Kong market ($USD670.77K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jian Wei
Executive Chairman18.83yrsCN¥5.63mno data
Feng Wang
Executive Vice Chairman & GM17.42yrsCN¥5.40mno data
Zhi Yang
Head of the Investment Management Department & Executive Director18.67yrsCN¥594.90kno data
Hui Xu
Head of Securities & Legal Affairs Department and Company Secretary11.75yrsCN¥1.16mno data
Shu Hu
Deputy General Manager14.33yrsCN¥4.15mno data
Guo Zhao
Deputy General Manager9.83yrsCN¥2.90mno data
Yu Liu
Chief Financial Controller1yrno datano data
Lu Juan
Head of the Accounting Department & Head of the Finance Sectionno datano datano data

11.8yrs

Average Tenure

47yo

Average Age

Experienced Management: 2333's management team is seasoned and experienced (11.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jian Wei
Executive Chairman18.83yrsCN¥5.63mno data
Feng Wang
Executive Vice Chairman & GM17.42yrsCN¥5.40mno data
Zhi Yang
Head of the Investment Management Department & Executive Director18.67yrsCN¥594.90kno data
Ping He
Non-Executive Director17.92yrsCN¥60.00kno data
Wan Jun Li
Independent Non-Executive Director2.92yrsCN¥60.00kno data
Chi Kit Ng
Independent Non-Executive Director2.92yrsCN¥151.40kno data
Li Ma
Independent Non-Executive Director5.92yrsCN¥60.00kno data
Yi Zong
Independent Supervisor5.92yrsCN¥11.00kno data
Biao Chen
Chairman of Supervisory Committee4.33yrsno datano data
Liu Qian
Independent Supervisor0.92yrno datano data

5.9yrs

Average Tenure

48yo

Average Age

Experienced Board: 2333's board of directors are considered experienced (5.9 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

Great Wall Motor Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Great Wall Motor Company Limited
  • Ticker: 2333
  • Exchange: SEHK
  • Founded: 1984
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: HK$69.266b
  • Shares outstanding: 9.13b
  • Website: https://www.gwm.com.cn

Number of Employees


Location

  • Great Wall Motor Company Limited
  • 2266 Chaoyang South Street
  • Baoding
  • Hebei Province
  • 71000
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2333SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2003
GWLL.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2003
GRVDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2003
2333SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2003
2333SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2003
GRVWBAG (Wiener Boerse AG)YesForeign Shares-Foreign ListedATEURDec 2003
601633SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYOct 2011
601633XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYOct 2011
GWLL.YOTCPK (Pink Sheets LLC)ADRUSUSDDec 2011

Biography

Great Wall Motor Company Limited manufactures and sells automobiles, and automotive parts and components. The company offers pick-up trucks, SUVs, sedans, and energy vehicles primarily under the Haval, WEY, Great Wall Pickup, and ORA brand names; Great Wall, Havel, and WEY brand names, as well as special vehicles, etc. It also researches, develops, and manufactures auto molds; repairs automobiles; and transports general goods, as well as provides truck transportation services. In addition, the company provides investment and financing, logistics, buildings rental, business information consultation, car rental, automotive finance, insurance brokerage, scrap car recycling and dismantling, finance lease, real estate, and after-sales services, as well as automotive technology research, development, and technical consultation services. Further, it processes, recycles, and sells waste and used materials. Great Wall Motor Company Limited also exports its products. Great Wall Motor Company Limited operates in China, South Africa, Ecuador, Chile, Russia, Iran, and internationally. The company was formerly known as Baoding Great Wall Motor Company Limited and changed its name to Great Wall Motor Company Limited in May 2003. The company was founded in 1984 and is headquartered in Baoding, China. Great Wall Motor Company Limited is a subsidiary of Baoding Innovation Great Wall Asset Management Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 13:20
End of Day Share Price2020/04/03 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.