SEHK:1839

Stock Analysis Report

Executive Summary

CIMC Vehicle (Group) Co., Ltd. engages in the manufacture and sale of semi-trailers and truck bodies for specialty vehicles.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has CIMC Vehicle (Group)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.0%

1839

7.4%

HK Machinery

3.1%

HK Market


1 Year Return

n/a

1839

17.4%

HK Machinery

0.5%

HK Market

Return vs Industry: Insufficient data to determine how 1839 performed against the Hong Kong Machinery industry.

Return vs Market: Insufficient data to determine how 1839 performed against the Hong Kong Market.


Shareholder returns

1839IndustryMarket
7 Day5.0%7.4%3.1%
30 Day5.9%-1.0%-1.8%
90 Day-13.3%-3.0%-4.8%
1 Yearn/a20.7%17.4%4.1%0.5%
3 Yearn/a54.0%44.6%15.8%4.2%
5 Yearn/a69.8%52.1%18.9%-0.9%

Price Volatility Vs. Market

How volatile is CIMC Vehicle (Group)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CIMC Vehicle (Group) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 1839 (HK$5) is trading below our estimate of fair value (HK$13.91)

Significantly Undervalued: 1839 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1839 is good value based on its PE Ratio (5.2x) compared to the Machinery industry average (9.5x).

PE vs Market: 1839 is good value based on its PE Ratio (5.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1839 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 1839 is overvalued based on its PB Ratio (0.9x) compared to the HK Machinery industry average (0.8x).


Next Steps

Future Growth

How is CIMC Vehicle (Group) forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1839's forecast earnings growth (7.2% per year) is above the savings rate (2%).

Earnings vs Market: 1839's earnings (7.2% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 1839's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1839's revenue (5.8% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 1839's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1839's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has CIMC Vehicle (Group) performed over the past 5 years?

23.0%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 1839's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 1839's past year earnings growth to its 5-year average.

Earnings vs Industry: 1839 earnings growth over the past year (23%) exceeded the Machinery industry 7.4%.


Return on Equity

High ROE: 1839's Return on Equity (17%) is considered low.


Return on Assets

ROA vs Industry: 1839 has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 1839's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is CIMC Vehicle (Group)'s financial position?


Financial Position Analysis

Short Term Liabilities: 1839's short term assets (CN¥11.0B) exceeds its short term liabilities (CN¥8.2B)

Long Term Liabilities: 1839's short term assets (11.0B) exceeds its long term liabilities (353.3M)


Debt to Equity History and Analysis

Debt Level: 1839's debt to equity ratio (21.7%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 1839's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1839's debt is well covered by operating cash flow (96.7%).

Interest Coverage: 1839's interest payments on its debt are well covered by EBIT (29.2x coverage).


Balance Sheet

Inventory Level: 1839 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1839's debt is covered by short term assets (assets are 6.115720x debt).


Next Steps

Dividend

What is CIMC Vehicle (Group)'s current dividend yield, its reliability and sustainability?

5.68%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage3.1%forecastin3Years5.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1839's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1839's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1839's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1839's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1839's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of CIMC Vehicle (Group)'s salary, the management and board of directors tenure and is there insider trading?


CEO

CIMC Vehicle (Group) has no CEO, or we have no data on them.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCN¥271,510,54525 Jul 19
Linglong Group Co., Ltd.
EntityCompany
Shares42,556,500
Max PriceCN¥6.38
BuyCN¥73,803,86125 Jul 19
Elite Faith Trading Limited
EntityCompany
Shares11,568,000
Max PriceCN¥6.38
BuyCN¥387,872,20825 Jul 19
Shanghai Automotive Industry Corporation (Group) Corp
EntityCompany
Shares60,795,000
Max PriceCN¥6.38

Ownership Breakdown


Management Team


    Board Members

    • Jianhong Li (63yo)

      Chairman

      • Tenure: 0yrs
    • Boliang Mai (60yo)

      Director

      • Tenure: 0yrs

    Company Information

    CIMC Vehicle (Group) Co., Ltd.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: CIMC Vehicle (Group) Co., Ltd.
    • Ticker: 1839
    • Exchange: SEHK
    • Founded: 1996
    • Industry: Construction Machinery and Heavy Trucks
    • Sector: Capital Goods
    • Market Cap: HK$8.578b
    • Shares outstanding: 1.77b
    • Website: https://www.cimcvehiclesgroup.com

    Number of Employees


    Location

    • CIMC Vehicle (Group) Co., Ltd.
    • CIMC R&D Center
    • No. 2 Gangwan Avenue
    • Shenzhen
    • Guangdong Province
    • 518067
    • China

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    1839SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares Foreign ListedHKHKDJul 2019

    Biography

    CIMC Vehicle (Group) Co., Ltd. engages in the manufacture and sale of semi-trailers and truck bodies for specialty vehicles. It offers chassis, flatbed, and terminal trailers; side-wall and stake fence tra ...


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2019/10/17 13:00
    End of Day Share Price2019/10/17 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.