SEHK:6830

Stock Analysis Report

Huazhong In-Vehicle Holdings

Executive Summary

Huazhong In-Vehicle Holdings Company Limited, an investment holding company, manufactures and sells automobile body parts in Mainland China and internationally.


Snowflake Analysis

Questionable track record with imperfect balance sheet.

Share Price & News

How has Huazhong In-Vehicle Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6830's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

6830

2.8%

HK Auto Components

5.3%

HK Market


1 Year Return

-50.3%

6830

-39.4%

HK Auto Components

-20.4%

HK Market

Return vs Industry: 6830 underperformed the Hong Kong Auto Components industry which returned -38% over the past year.

Return vs Market: 6830 underperformed the Hong Kong Market which returned -20.3% over the past year.


Shareholder returns

6830IndustryMarket
7 Day-1.4%2.8%5.3%
30 Day-21.1%-19.9%-8.5%
90 Day-34.3%-25.8%-14.7%
1 Year-50.2%-50.3%-37.3%-39.4%-17.6%-20.4%
3 Year-11.9%-13.2%-42.0%-46.3%-2.5%-12.3%
5 Year-9.1%-10.7%-14.0%-23.4%-5.7%-20.9%

Price Volatility Vs. Market

How volatile is Huazhong In-Vehicle Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Huazhong In-Vehicle Holdings undervalued compared to its fair value and its price relative to the market?

13.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6830 (HK$0.71) is trading above our estimate of fair value (HK$0.05)

Significantly Below Fair Value: 6830 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6830 is poor value based on its PE Ratio (13.7x) compared to the Auto Components industry average (10.5x).

PE vs Market: 6830 is poor value based on its PE Ratio (13.7x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6830's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6830 is overvalued based on its PB Ratio (1.1x) compared to the HK Auto Components industry average (0.7x).


Next Steps

Future Growth

How is Huazhong In-Vehicle 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 Huazhong In-Vehicle 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 Huazhong In-Vehicle Holdings performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6830 has high quality earnings.

Growing Profit Margin: 6830's current net profit margins (3.9%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: 6830's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: 6830's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6830 had negative earnings growth (-39.4%) over the past year, making it difficult to compare to the Auto Components industry average (-22.1%).


Return on Equity

High ROE: 6830's Return on Equity (8.2%) is considered low.


Next Steps

Financial Health

How is Huazhong In-Vehicle Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 6830's short term assets (CN¥1.9B) do not cover its short term liabilities (CN¥2.1B).

Long Term Liabilities: 6830's short term assets (CN¥1.9B) exceed its long term liabilities (CN¥85.3M).


Debt to Equity History and Analysis

Debt Level: 6830's debt to equity ratio (78.5%) is considered high.

Reducing Debt: 6830's debt to equity ratio has reduced from 125.5% to 78.5% over the past 5 years.

Debt Coverage: 6830's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: 6830's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

Inventory Level: 6830 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6830's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

What is Huazhong In-Vehicle Holdings's current dividend yield, its reliability and sustainability?

0.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6830's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.67%).

High Dividend: 6830's dividend (0.73%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.29%).


Stability and Growth of Payments

Stable Dividend: 6830 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 6830 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 6830 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 6830'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?

5.9yrs

Average management tenure


CEO

Minfeng Zhou (52yo)

0.67

Tenure

CN¥515,000

Compensation

Mr. Zhou Minfeng is the Founder of Huazhong In-Vehicle Holdings Company Limited and serves as its Chairman of the Board. He serves as CEO at Huazhong In-Vehicle Holdings Company Limited since July 31, 2019 ...


CEO Compensation Analysis

Compensation vs Market: Minfeng's total compensation ($USD72.58K) is below average for companies of similar size in the Hong Kong market ($USD301.52K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Minfeng Zhou
Chairman & CEO0.67yrCN¥515.00k74.67% CN¥964.4m
Jingzhou Chang
Executive Director8.25yrsCN¥366.00k0.048% CN¥613.5k
Wah Cheung
CFO & Joint Company Secretary4.75yrsno datano data
Ruqing Zhou
Vice General Managerno datano datano data
Jihong Cui
Assistant to General Manager11.92yrsno datano data
Wing Yan Ho
Joint Company Secretary7yrsno datano data

5.9yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 6830's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Minfeng Zhou
Chairman & CEO0.67yrCN¥515.00k74.67% CN¥964.4m
Jingzhou Chang
Executive Director8.25yrsCN¥366.00k0.048% CN¥613.5k
Luen Cheung Wong
Independent Vice Chairman4.25yrsCN¥232.00k0.057% CN¥730.0k
Xin Guan
Non-Executive Director5.33yrsCN¥210.00kno data
Shuli Yu
Independent Non-Executive Director8.25yrsCN¥201.00kno data
Cairong Lai
Non-Executive Director8.25yrsCN¥210.00kno data
Yuming Wang
Non-Executive Director8.25yrsCN¥210.00kno data
Yushi Tian
Independent Non-Executive Director8.25yrsCN¥194.00kno data
Jiali Xu
Independent Non-Executive Director6.67yrsCN¥201.00kno data
Bichao Wu
Independent Non-Executive Director1.5yrsno datano data

8.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 6830's board of directors are considered experienced (8.3 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

Huazhong In-Vehicle Holdings Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Huazhong In-Vehicle Holdings Company Limited
  • Ticker: 6830
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: HK$1.292b
  • Shares outstanding: 1.77b
  • Website: https://www.cn-huazhong.com

Number of Employees


Location

  • Huazhong In-Vehicle Holdings Company Limited
  • No. 104 Zhenan Road
  • Xizhou Town
  • Xiangshan
  • Zhejiang Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6830SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2012

Biography

Huazhong In-Vehicle Holdings Company Limited, an investment holding company, manufactures and sells automobile body parts in Mainland China and internationally. It offers internal and external decorative and structural automobile parts, molds and tooling products, and casings and liquid tanks of air-conditioning or heater units; and other non-automobile products, such as top cowl covers and office chairs. The company also manufactures and sells plastic parts and automotive parts; imports and exports various products and technologies; and processes and sells plastic and latex products, and spare and accessory parts. It serves automakers and automobile body parts manufacturers, as well as suppliers for automakers. The company was formerly known as Huazhong Holdings Company Limited and changed its name to Huazhong In-Vehicle Holdings Company Limited in January 2015. The company was founded in 1993 and is headquartered in Xiangshan, China. Huazhong In-Vehicle Holdings Company Limited is a subsidiary of Huayou Holdings Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 13:21
End of Day Share Price2020/03/30 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.