Shanghai Dongzheng Automotive Finance Co., Ltd.
Undervalued with imperfect balance sheet.
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's share price has been volatile over the past 3 months.
7 Day Return
HK Consumer Finance
1 Year Return
HK Consumer Finance
Return vs Industry: 2718 underperformed the Hong Kong Consumer Finance industry which returned -23.8% over the past year.
Return vs Market: 2718 underperformed the Hong Kong Market which returned -9.9% over the past year.
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
1 month ago | Simply Wall StCan We See Significant Institutional Ownership On The Shanghai Dongzheng Automotive Finance Co., Ltd. (HKG:2718) Share Register?
4 months ago | Simply Wall StCan We See Significant Institutional Ownership On The Shanghai Dongzheng Automotive Finance Co., Ltd. (HKG:2718) Share Register?
8 months ago | Simply Wall StA Sliding Share Price Has Us Looking At Shanghai Dongzheng Automotive Finance Co., Ltd.'s (HKG:2718) P/E Ratio
Is Shanghai Dongzheng Automotive Finance undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 2718 (HK$0.57) is trading below our estimate of fair value (HK$1.2)
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 (2.7x) compared to the Consumer Finance industry average (5.7x).
PE vs Market: 2718 is good value based on its PE Ratio (2.7x) compared to the Hong Kong market (9.3x).
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).
How is Shanghai Dongzheng Automotive Finance forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if 2718's forecast earnings growth is above the savings rate (1.6%).
Earnings vs Market: Insufficient data to determine if 2718's earnings are forecast to grow faster than the Hong Kong market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 2718's revenue (10.4% per year) is forecast to grow slower than the Hong Kong market (10.5% per year).
High Growth Revenue: 2718's revenue (10.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 2718's Return on Equity is forecast to be low in 3 years time (8.9%).
How has Shanghai Dongzheng Automotive Finance performed over the past 5 years?
Last years earnings growth
Earnings and Revenue History
Quality Earnings: 2718 has a high level of non-cash earnings.
Growing Profit Margin: 2718's current net profit margins (65.5%) are lower than last year (66%).
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if 2718's year-on-year earnings growth rate was positive 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 (-13.9%) over the past year, making it difficult to compare to the Consumer Finance industry average (-8.4%).
Return on Equity
High ROE: 2718's Return on Equity (9.7%) is considered low.
How is Shanghai Dongzheng Automotive Finance's financial position?
Financial Position Analysis
Short Term Liabilities: 2718's short term assets (CN¥10.2B) exceed its short term liabilities (CN¥309.0M).
Long Term Liabilities: 2718's short term assets (CN¥10.2B) exceed its long term liabilities (CN¥6.0B).
Debt to Equity History and Analysis
Debt Level: 2718's debt to equity ratio (148.8%) 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.
What is Shanghai Dongzheng Automotive Finance's 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.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Yi Li (46yo)
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 ...
|Chairman||no data||no data||no data|
|Executive Director||no data||no data||no data|
|Independent Non-Executive Director||0.17yr||no data||no data|
|Independent Non-Executive Director||no data||no data||no data|
|Chairman of the Board of Supervisors||2yrs||no data||no data|
|Independent Non-Executive Director||no data||no data||no data|
|Non-Executive Director||no data||no data||no data|
|Non-Executive Director||0.58yr||no data||no data|
|Supervisor||2yrs||no data||no data|
|Employee Representative Supervisor||2yrs||no data||no data|
Experienced Board: 2718's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Shanghai Dongzheng Automotive Finance Co., Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: Shanghai Dongzheng Automotive Finance Co., Ltd.
- Ticker: 2718
- Exchange: SEHK
- Founded: 2015
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: HK$1.220b
- Shares outstanding: 2.14b
- Website: https://www.dongzhengafc.com
Number of Employees
- Shanghai Dongzheng Automotive Finance Co., Ltd.
- Mirae Asset Tower
- Unit ABC
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|2718||SEHK (The Stock Exchange of Hong Kong Ltd.)||Yes||Domestic Shares||HK||HKD||Apr 2019|
|2XK||DB (Deutsche Boerse AG)||Yes||Domestic Shares||DE||EUR||Apr 2019|
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 segments. It offers retail loan; and loan facilitation, joint loan arrangement, direct lease, and other financial services. The company also provides loans to automobile dealers to facilitate their purchase of vehicles and accessories. As of December 31, 2019, it had a network of 913 dealers covering approximately 172 cities. The company was founded in 2015 and is headquartered in Shanghai, China. Shanghai Dongzheng Automotive Finance Co., Ltd. is a subsidiary of China ZhengTong Auto Services Holdings Limited.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/05/31 13:52|
|End of Day Share Price||2020/05/29 00:00|
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.