SEHK:2718

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Shanghai Dongzheng Automotive Finance

Executive Summary

Shanghai Dongzheng Automotive Finance Co., Ltd. More Details


Snowflake Analysis

Undervalued with questionable track record.

Share Price & News

How has Shanghai Dongzheng Automotive Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2718 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 2718's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

0%

2718

1.4%

HK Consumer Finance

1.4%

HK Market


1 Year Return

-41.0%

2718

-1.5%

HK Consumer Finance

11.5%

HK Market

Return vs Industry: 2718 underperformed the Hong Kong Consumer Finance industry which returned -1.5% over the past year.

Return vs Market: 2718 underperformed the Hong Kong Market which returned 11.5% over the past year.


Shareholder returns

2718IndustryMarket
7 Day0%1.4%1.4%
30 Day0%2.0%8.1%
90 Day19.2%-9.0%6.1%
1 Year-41.0%-41.0%14.6%-1.5%16.0%11.5%
3 Yearn/a-28.4%-37.8%1.7%-8.8%
5 Yearn/a-19.2%-38.9%33.3%10.9%

Long-Term Price Volatility Vs. Market

How volatile is Shanghai Dongzheng Automotive Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shanghai Dongzheng Automotive Finance undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2718 (HK$0.59) is trading below our estimate of fair value (HK$1.26)

Significantly Below Fair Value: 2718 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2718 is good value based on its PE Ratio (3.2x) compared to the HK Consumer Finance industry average (6.2x).

PE vs Market: 2718 is good value based on its PE Ratio (3.2x) compared to the Hong Kong market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2718's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2718 is good value based on its PB Ratio (0.3x) compared to the HK Consumer Finance industry average (0.4x).


Next Steps

Future Growth

How is Shanghai Dongzheng Automotive Finance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

27.4%

Forecasted Diversified Financials 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 Shanghai Dongzheng Automotive Finance 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 Shanghai Dongzheng Automotive Finance performed over the past 5 years?

14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2718 has high quality earnings.

Growing Profit Margin: 2718's current net profit margins (62.5%) are lower than last year (63.7%).


Past Earnings Growth Analysis

Earnings Trend: 2718's earnings have grown by 14.9% per year over the past 5 years.

Accelerating Growth: 2718's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2718 had negative earnings growth (-23.2%) over the past year, making it difficult to compare to the Consumer Finance industry average (-19.7%).


Return on Equity

High ROE: 2718's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is Shanghai Dongzheng Automotive Finance's financial position?


Financial Position Analysis

Short Term Liabilities: 2718's short term assets (CN¥8.4B) exceed its short term liabilities (CN¥226.6M).

Long Term Liabilities: 2718's short term assets (CN¥8.4B) exceed its long term liabilities (CN¥4.1B).


Debt to Equity History and Analysis

Debt Level: 2718's debt to equity ratio (98.7%) is considered high.

Reducing Debt: Insufficient data to determine if 2718's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 2718's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 2718's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Shanghai Dongzheng Automotive Finance current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2718's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2718'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 2718's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2718's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2718 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 2718'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?

2.5yrs

Average board tenure


CEO

Yi Li (47 yo)

3.5yrs

Tenure

Mr. Yi Li serves as President of Shanghai Dongzheng Automotive Finance Co., Ltd. since May 2017. He served as the Chief Operating Officer of China Zhengtong Auto Services Holdings Limited from July 2012 to...


Board Members

NamePositionTenureCompensationOwnership
Fan Lin
Executive Chairmanno datano datano data
Yongjun Shao
Executive Directorno datano datano data
Man Chung Wong
Independent Non-Executive Director0.75yrno datano data
Yanjun Liang
Independent Non-Executive Directorno datano datano data
Huihua Liu
Chairman of the Board of Supervisors2.5yrsno datano data
Tee Choong Koh
Non-Executive Directorno datano datano data
Guozhou Li
Non-Executive Director1.17yrsno datano data
Tao Li
Supervisor2.5yrsno datano data
Qing Wang
Employee Representative Supervisor2.5yrsno datano data

2.5yrs

Average Tenure

49yo

Average Age

Experienced Board: 2718's board of directors are not considered experienced ( 2.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Shanghai Dongzheng Automotive Finance Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shanghai Dongzheng Automotive Finance Co., Ltd.
  • Ticker: 2718
  • Exchange: SEHK
  • Founded: 2015
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: HK$1.262b
  • Shares outstanding: 2.14b
  • Website: https://www.dongzhengafc.com

Number of Employees


Location

  • Shanghai Dongzheng Automotive Finance Co., Ltd.
  • Mirae Asset Tower
  • Unit ABC
  • Shanghai
  • Shanghai Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2718SEHK (The Stock Exchange of Hong Kong Ltd.)YesDomestic SharesHKHKDApr 2019
2XKDB (Deutsche Boerse AG)YesDomestic SharesDEEURApr 2019

Biography

Shanghai Dongzheng Automotive Finance Co., Ltd. operates as an auto finance company in the People’s Republic of China. The company operates through Retail Business, Dealer’s Loan Business, and Others segme...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 10:02
End of Day Share Price2020/11/27 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.