SEHK:489

Stock Analysis Report

Dongfeng Motor Group

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.


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


Market Performance


7 Day Return

5.3%

489

1.8%

HK Auto

2.4%

HK Market


1 Year Return

3.2%

489

-3.8%

HK Auto

0.4%

HK Market

Return vs Industry: 489 exceeded the Hong Kong Auto industry which returned -3.8% over the past year.

Return vs Market: 489 exceeded the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

489IndustryMarket
7 Day5.3%1.8%2.4%
30 Day-5.9%-7.2%-2.6%
90 Day12.8%-5.6%-5.6%
1 Year9.7%3.2%-0.1%-3.8%4.0%0.4%
3 Year9.3%-6.0%-3.5%-11.7%15.1%3.5%
5 Year-22.3%-36.7%6.6%-6.3%20.3%0.3%

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?

4.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 489 (HK$7.69) is trading above our estimate of fair value (HK$5.55)

Significantly Undervalued: 489 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 489 is good value based on its PE Ratio (4.5x) compared to the Auto industry average (10.3x).

PE vs Market: 489 is good value based on its PE Ratio (4.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 489 is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 489 is good value based on its PB Ratio (0.5x) compared to the HK Auto industry average (0.7x).


Next Steps

Future Growth

How is Dongfeng Motor Group forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 489's forecast earnings growth (4.3% per year) is above the savings rate (2%).

Earnings vs Market: 489's earnings (4.3% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

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

Revenue vs Market: 489's revenue (0.5% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 489's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 489's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

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

3.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 489's earnings have grown by 3.1% 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 (-11.2%) over the past year, making it difficult to compare to the Auto industry average (-11.2%).


Return on Equity

High ROE: 489's Return on Equity (10%) is considered low.


Return on Assets

ROA vs Industry: 489 has a higher Return on Assets than the Auto industry average last year.


Return on Capital Employed

ROCE Improving: 489 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Dongfeng Motor Group's financial position?


Financial Position Analysis

Short Term Liabilities: 489's short term assets (CN¥110.0B) exceeds its short term liabilities (CN¥84.0B)

Long Term Liabilities: 489's short term assets (110.0B) exceeds its long term liabilities (24.7B)


Debt to Equity History and Analysis

Debt Level: 489's debt to equity ratio (24.5%) is considered satisfactory

Reducing Debt: 489's debt to equity ratio has reduced from 29.2% to 24.5% over the past 5 years.

Debt Coverage: 489's operating cash flow is negative, therefore debt is not well covered.

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


Balance Sheet

Inventory Level: 489 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 489's debt is covered by short term assets (assets are 3.430040x debt).


Next Steps

Dividend

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

5.05%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%2.3%markettop25%6.3%industryaverage3.3%forecastin3Years4.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 489's dividend (5.05%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 489's dividend (5.05%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).

Stable Dividend: 489's dividend payments have been volatile in the past 10 years.

Growing Dividend: 489's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.5%), 489's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 489's dividends in 3 years are forecast to be well covered by earnings (20.4% payout ratio).


Next Steps

Management

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

6.0yrs

Average board tenure


CEO

Shaozhu Li (58yo)

3.2yrs

Tenure

CN¥799,000

Compensation

Mr. Li Shaozhu 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 ($USD113.08K) is about average for companies of similar size in the Hong Kong market ($USD584.28K).

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


Board Age and Tenure

6.0yrs

Average Tenure

58yo

Average Age

Experienced Board: 489's board of directors are considered experienced (6 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.


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Ownership Breakdown


Management Team

  • Yanfeng Zhu (58yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: CN¥808.00k
  • Shaozhu Li (58yo)

    President & Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥799.00k
  • Yang Qiao (56yo)

    Vice President

    • Tenure: 3.2yrs
  • Feng Lu (51yo)

    Secretary to the Board of Directors

    • Tenure: 0yrs
  • Gang Huang (52yo)

    Head of the Strategy & Planning Department

    • Tenure: 0yrs
    • Compensation: CN¥574.00k
  • Yaosheng Xu

    Head of Beijing Office

    • Tenure: 0yrs
  • Liang Wen

    Head of the Personnel Department

    • Tenure: 0yrs
  • Guolin Gao

    Head of the Financial Accounting Department

    • Tenure: 0yrs
  • Jun Yu

    Head of the Organisation & Information Department

    • Tenure: 0yrs
  • Wenqing Wei

    Head of the Operation Management Department

    • Tenure: 0yrs

Board Members

  • Xiaotie Zhang (67yo)

    Independent Non-Executive Director

    • Tenure: 6yrs
    • Compensation: CN¥60.00k
  • Yanfeng Zhu (58yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: CN¥808.00k
  • Shaozhu Li (58yo)

    President & Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥799.00k
  • Yunfei Chen (48yo)

    Independent Non-Executive Director

    • Tenure: 6yrs
    • Compensation: CN¥60.00k
  • Wei He (55yo)

    Employee Supervisor

    • Tenure: 2.4yrs
  • Zhigeng Ma (74yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: CN¥60.00k
  • Jun Zhao (61yo)

    Independent Supervisor

    • Tenure: 6yrs
    • Compensation: CN¥53.00k

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$65.483b
  • 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 Economic and Technology Development Zone
  • Wuhan
  • Hubei Province
  • 430056
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
489SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2005
D4DDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2005
DNFG.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2005
489SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2005
489SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2005
DNFG.YOTCPK (Pink Sheets LLC)UNSP REP SHS H AUSUSDApr 2009

Biography

Dongfeng Motor Group Company Limited manufactures and sells commercial vehicles, passenger vehicles, and auto engines and parts in the People’s Republic of China. The company operates through four segments ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:41
End of Day Share Price2019/10/15 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.