SEHK:489

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Very undervalued established 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

Stable Share Price: 489 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.7%

489

2.0%

HK Auto

-0.7%

HK Market


1 Year Return

-30.6%

489

69.2%

HK Auto

0.5%

HK Market

Return vs Industry: 489 underperformed the Hong Kong Auto industry which returned 69.2% over the past year.

Return vs Market: 489 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

489IndustryMarket
7 Day-4.7%2.0%-0.7%
30 Day13.3%27.2%5.8%
90 Day-1.8%43.8%1.4%
1 Year-25.0%-30.6%75.2%69.2%4.6%0.5%
3 Year-37.1%-47.9%10.4%-0.2%-6.8%-16.9%
5 Year-39.2%-53.0%86.6%58.8%15.8%-3.8%

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?

33.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 489 (HK$5.45) is trading below our estimate of fair value (HK$8.14)

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 (5.5x) compared to the HK Auto industry average (17.1x).

PE vs Market: 489 is good value based on its PE Ratio (5.5x) compared to the Hong Kong market (10.9x).


Price to Earnings Growth Ratio

PEG Ratio: 489 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 489 is good value based on its PB Ratio (0.3x) compared to the HK Auto industry average (0.8x).


Next Steps

Future Growth

How is Dongfeng Motor Group forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 489's forecast earnings growth (15% per year) is above the savings rate (1.6%).

Earnings vs Market: 489's earnings (15% per year) are forecast to grow slower than the Hong Kong market (22.2% per year).

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

Revenue vs Market: 489's revenue (4.3% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 489's revenue (4.3% 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%).


Next Steps

Past Performance

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

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 489 has a large one-off loss of CN¥2.8B impacting its June 30 2020 financial results.

Growing Profit Margin: 489's current net profit margins (7.1%) are lower than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: 489's earnings have declined by 0.3% 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 (-45%) over the past year, making it difficult to compare to the Auto industry average (-45%).


Return on Equity

High ROE: 489's Return on Equity (5%) is considered low.


Next Steps

Financial Health

How is Dongfeng Motor Group's financial position?


Financial Position Analysis

Short Term Liabilities: 489's short term assets (CN¥158.6B) exceed its short term liabilities (CN¥116.6B).

Long Term Liabilities: 489's short term assets (CN¥158.6B) exceed its long term liabilities (CN¥40.2B).


Debt to Equity History and Analysis

Debt Level: 489's debt to equity ratio (43.7%) is considered high.

Reducing Debt: 489's debt to equity ratio has increased from 16.5% to 43.7% 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


Next Steps

Dividend

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

7.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 489's dividend (7.42%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 489's dividend (7.42%) is in the top 25% of dividend payers in the Hong Kong market (6.97%)


Stability and Growth of Payments

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 reasonably low payout ratio (40.9%), 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 (18% payout ratio).


Next Steps

Management

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

0.9yrs

Average board tenure


CEO

Shaozhu Li (60 yo)

4.17yrs

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 ($USD139.55K) is below average for companies of similar size in the Hong Kong market ($USD628.98K).

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


Board Members

NamePositionTenureCompensationOwnership
Yanfeng Zhu
Executive Chairman of the Board5.33yrsCN¥937.00kno data
Shaozhu Li
President & Executive Director4.17yrsCN¥937.00kno data
Zheng You
VP, Head of the Strategic Planning Department & Executive Director0.92yrCN¥355.75kno data
Pingan Li
Head of the Corporate Culture Department & Employee Supervisor0.92yrno data0.00070%
CN¥ 329.3k
Yaoliang Yin
Deputy Director & Joint Company Secretaryno datano datano data
Qingsheng Zong
Independent Non-Executive Director0.083yrno datano data
Wei He
Chairman of Supervisory Committee0.92yrno data0.0012%
CN¥ 545.7k
Jun Zhao
Independent Supervisor7yrsCN¥53.00kno data
Yiguang Hu
Independent Non-Executive Director0.083yrno datano data
Wai Lap Leung
Independent Non-Executive Director0.17yrno datano data
Hongyi Zheng
Employee Supervisor0.083yrno data0.00070%
CN¥ 329.3k
Hongxiang Bao
Non-Employee Supervisor0.083yrno datano data

0.9yrs

Average Tenure

58yo

Average Age

Experienced Board: 489's board of directors are not considered experienced ( 0.9 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$47.044b
  • 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

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. It operates through four segments: Commerc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 12:49
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
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.