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Dongfeng Motor Group

Market Cap

HK$61.3b

Last Updated

2021/05/16 10:16 UTC

Data Sources

Company Financials +

Executive Summary

Dongfeng Motor Group Company Limited manufactures and sells commercial vehicles, passenger vehicles, and engines and parts in the People’s Republic of China. More Details


Snowflake Analysis

Very undervalued with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 489 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 489's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

489

-3.4%

HK Auto

-1.9%

HK Market


1 Year Return

33.6%

489

103.0%

HK Auto

24.3%

HK Market

Return vs Industry: 489 underperformed the Hong Kong Auto industry which returned 103% over the past year.

Return vs Market: 489 exceeded the Hong Kong Market which returned 24.4% over the past year.


Shareholder returns

489IndustryMarket
7 Day0.9%-3.4%-1.9%
30 Day-2.6%-18.1%-3.4%
90 Day-13.2%-37.1%-8.0%
1 Year44.3%33.6%109.5%103.0%29.0%24.3%
3 Year-2.5%-19.2%42.9%29.9%0.5%-10.0%
5 Year21.2%-6.3%149.8%116.5%58.6%31.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Dongfeng Motor Group undervalued compared to its fair value and its price relative to the market?

39.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 489 (HK$7.11) is trading below our estimate of fair value (HK$11.8)

Significantly Below Fair Value: 489 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 489 is good value based on its PE Ratio (4.7x) compared to the Hong Kong Auto industry average (11.8x).

PE vs Market: 489 is good value based on its PE Ratio (4.7x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: 489 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 489 is good value based on its PB Ratio (0.4x) compared to the HK Auto industry average (0.7x).


Future Growth

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

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 489's forecast earnings growth (6.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 489's earnings (6.1% per year) are forecast to grow slower than the Hong Kong market (16.7% per year).

High Growth Earnings: 489's earnings are forecast to grow, but not significantly.

Revenue vs Market: 489's revenue (5.9% per year) is forecast to grow slower than the Hong Kong market (12.4% per year).

High Growth Revenue: 489's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 489's Return on Equity is forecast to be low in 3 years time (8.1%).


Past Performance

How has Dongfeng Motor Group performed over the past 5 years?

-3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 489 has high quality earnings.

Growing Profit Margin: 489's current net profit margins (10%) are lower than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: 489's earnings have declined by 3.6% per year over the past 5 years.

Accelerating Growth: 489's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 489 had negative earnings growth (-15.9%) over the past year, making it difficult to compare to the Auto industry average (38%).


Return on Equity

High ROE: 489's Return on Equity (7.5%) is considered low.


Financial Health

How is Dongfeng Motor Group's financial position?


Financial Position Analysis

Short Term Liabilities: 489's short term assets (CN¥172.1B) exceed its short term liabilities (CN¥142.1B).

Long Term Liabilities: 489's short term assets (CN¥172.1B) exceed its long term liabilities (CN¥33.3B).


Debt to Equity History and Analysis

Debt Level: 489's debt to equity ratio (43%) is considered high.

Reducing Debt: 489's debt to equity ratio has increased from 15.9% to 43% over the past 5 years.

Debt Coverage: 489's debt is not well covered by operating cash flow (2%).

Interest Coverage: Insufficient data to determine if 489's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Dongfeng Motor Group current dividend yield, its reliability and sustainability?

7.26%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 489's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 489's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 489's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 489's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 489 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 489's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

0.8yrs

Average board tenure


CEO

Shaozhu Li (60 yo)

4.75yrs

Tenure

CN¥937,000

Compensation

Mr. Shaozhu Li has been the President of Dongfeng Motor Group Company Limited since August 26, 2016 and its Executive Director since October 2004. Mr. Li serves as Deputy General Manager of Dongfeng Motor ...


CEO Compensation Analysis

Compensation vs Market: Shaozhu's total compensation ($USD145.56K) is below average for companies of similar size in the Hong Kong market ($USD646.79K).

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


Board Members

Experienced Board: 489's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


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

Dongfeng Motor Group Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dongfeng Motor Group Company Limited
  • Ticker: 489
  • Exchange: SEHK
  • Founded: 1969
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: HK$61.261b
  • Shares outstanding: 8.62b
  • Website: https://www.dfmg.com.cn

Number of Employees


Location

  • Dongfeng Motor Group Company Limited
  • Special No. 1 Dongfeng Road
  • Wuhan Eco and Tech Development Zone
  • Wuhan
  • Hubei Province
  • 430056
  • China

Listings


Biography

Dongfeng Motor Group Company Limited manufactures and sells commercial vehicles, passenger vehicles, and engines and parts in the People’s Republic of China. It operates in four segments: Commercial Vehicl...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 10:16
End of Day Share Price2021/05/14 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.