SEHK:305

Stock Analysis Report

Wuling Motors Holdings

Executive Summary

Wuling Motors Holdings Limited, an investment holding company, manufactures and trades in engines and parts, automotive components and accessories, and specialized vehicles in the People’s Republic of China and internationally.


Snowflake Analysis

Overvalued with poor track record.


Similar Companies

Share Price & News

How has Wuling Motors Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 305's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.9%

305

2.8%

HK Auto Components

5.3%

HK Market


1 Year Return

-46.4%

305

-39.4%

HK Auto Components

-20.4%

HK Market

Return vs Industry: 305 underperformed the Hong Kong Auto Components industry which returned -38.8% over the past year.

Return vs Market: 305 underperformed the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

305IndustryMarket
7 Day-2.9%2.8%5.3%
30 Day-24.2%-19.9%-8.5%
90 Day-31.9%-25.8%-14.7%
1 Year-38.4%-46.4%-37.3%-39.4%-17.6%-20.4%
3 Year-64.5%-70.4%-42.0%-46.3%-2.5%-12.3%
5 Year-63.9%-70.4%-14.0%-23.4%-5.7%-20.9%

Price Volatility Vs. Market

How volatile is Wuling Motors Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wuling Motors Holdings undervalued compared to its fair value and its price relative to the market?

17.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 305 (HK$0.2) is trading above our estimate of fair value (HK$0.05)

Significantly Below Fair Value: 305 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 305 is poor value based on its PE Ratio (17.7x) compared to the Auto Components industry average (11.4x).

PE vs Market: 305 is poor value based on its PE Ratio (17.7x) compared to the Hong Kong market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 305's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 305 is good value based on its PB Ratio (0.3x) compared to the HK Auto Components industry average (0.8x).


Next Steps

Future Growth

How is Wuling Motors Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.7%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Wuling Motors Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Wuling Motors Holdings performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 305 has a high level of non-cash earnings.

Growing Profit Margin: 305's current net profit margins (0.1%) are lower than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: 305's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: 305's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 305 had negative earnings growth (-85.2%) over the past year, making it difficult to compare to the Auto Components industry average (-22.1%).


Return on Equity

High ROE: 305's Return on Equity (2.7%) is considered low.


Next Steps

Financial Health

How is Wuling Motors Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 305's short term assets (CN¥7.3B) do not cover its short term liabilities (CN¥9.2B).

Long Term Liabilities: 305's short term assets (CN¥7.3B) exceed its long term liabilities (CN¥352.1M).


Debt to Equity History and Analysis

Debt Level: 305's debt to equity ratio (85.5%) is considered high.

Reducing Debt: 305's debt to equity ratio has increased from 68.5% to 85.5% over the past 5 years.

Debt Coverage: 305's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 305's interest payments on its debt are not well covered by EBIT (0.6x coverage).


Balance Sheet

Inventory Level: 305 has a high level of physical assets or inventory.

Debt Coverage by Assets: 305's debt is covered by short term assets (assets are 3.4x debt).


Next Steps

Dividend

What is Wuling Motors Holdings's current dividend yield, its reliability and sustainability?

2.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 305's dividend (2.38%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.63%).

High Dividend: 305's dividend (2.38%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.28%).


Stability and Growth of Payments

Stable Dividend: 305 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 305 has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.3%), 305's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.3yrs

Average board tenure


CEO

Shing Lee (61yo)

no data

Tenure

CN¥1,746,000

Compensation

Mr. Shing Lee serves as the Chief Executive Officer of Wuling Motors Holdings Limited. He has been Director of Lincoln Gold Mining Inc (formerly Lincoln Mining Corporation) since March 27, 2019. Mr. Lee se ...


CEO Compensation Analysis

Compensation vs Market: Shing's total compensation ($USD245.96K) is about average for companies of similar size in the Hong Kong market ($USD232.34K).

Compensation vs Earnings: Shing's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Shing Lee
Vice-Chairman & CEOno dataCN¥1.75m11.83% CN¥72.7m
Zhijun Yuan
Chairman of the Board3.25yrsno data0.098% CN¥600.0k
Daizhi Wen
Chief Engr of Wuling Industrialno datano datano data
Jianyong Yang
Executive Director3.25yrsno datano data
Huanyu Li
Vice GM of Wuling Industrial and Director & GM of Wuling Liujino datano datano data
Zhengtong Wang
Executive Director1yrno datano data
Xiang Ye
Independent Non-Executive Director11.42yrsCN¥173.00k0.034% CN¥206.0k
Yuben Wang
Independent Non-Executive Director5yrsCN¥122.00kno data
Jianguo Mi
Independent Non-Executive Director2.42yrsCN¥122.00kno data

3.3yrs

Average Tenure

55yo

Average Age

Experienced Board: 305's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 305 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%.


Top Shareholders

Company Information

Wuling Motors Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wuling Motors Holdings Limited
  • Ticker: 305
  • Exchange: SEHK
  • Founded:
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: HK$615.032m
  • Shares outstanding: 3.08b
  • Website: https://www.wuling.com.hk/index.php/en/

Number of Employees


Location

  • Wuling Motors Holdings Limited
  • Beautiful Group Tower
  • 19th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
305SEHK (The Stock Exchange of Hong Kong Ltd.)HKD0.004HKHKDNo data
305SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 1992

Biography

Wuling Motors Holdings Limited, an investment holding company, manufactures and trades in engines and parts, automotive components and accessories, and specialized vehicles in the People’s Republic of China and internationally. The company operates through Engines and Related Parts; Automotive Components and Other Industrial Services; Specialized Vehicles; and Others segments. It offers petrol and motor cycle engines, as well as engines and automotive components to commercial-type mini-vehicles and passenger vehicles; and manufactures electrical mini-trucks. The company also trades in raw materials, which primarily include metals and other consumables; provides water and power supply, and industrial services; manufactures specialized vehicles, including energy vehicles; and invests in properties. In addition, it provides administrative services. The company was formerly known as Dragon Hill Wuling Automobile Holdings Limited and changed its name to Wuling Motors Holdings Limited in June 2011. The company is headquartered in Central, Hong Kong. Wuling Motors Holdings Limited is a subsidiary of Wuling (Hong Kong) Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 12:52
End of Day Share Price2020/03/31 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.