SEHK:1268

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

China MeiDong Auto Holdings

Market Cap

HK$50.8b

Last Updated

2021/08/03 17:28 UTC

Data Sources

Company Financials +

Executive Summary

China MeiDong Auto Holdings Limited, an investment holding company, operates as an automobile dealer in the People’s Republic of China. More Details


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.

Share Price & News

How has China MeiDong Auto Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1268 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 1268's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-3.2%

1268

-0.5%

HK Specialty Retail

0.6%

HK Market


1 Year Return

73.6%

1268

52.1%

HK Specialty Retail

8.7%

HK Market

Return vs Industry: 1268 exceeded the Hong Kong Specialty Retail industry which returned 52.1% over the past year.

Return vs Market: 1268 exceeded the Hong Kong Market which returned 8.7% over the past year.


Shareholder returns

1268IndustryMarket
7 Day-3.2%-0.5%0.6%
30 Day-3.3%-7.2%-7.5%
90 Day4.2%11.1%-9.4%
1 Year75.9%73.6%56.7%52.1%12.4%8.7%
3 Year1,453.8%1,352.0%127.5%105.1%11.4%-1.1%
5 Year4,811.9%4,106.2%187.9%137.2%38.2%13.7%

Long-Term Price Volatility Vs. Market

How volatile is China MeiDong Auto Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China MeiDong Auto Holdings undervalued compared to its fair value and its price relative to the market?

24.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1268 (HK$40.8) is trading below our estimate of fair value (HK$53.87)

Significantly Below Fair Value: 1268 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1268 is poor value based on its PE Ratio (54.5x) compared to the Hong Kong Specialty Retail industry average (13.3x).

PE vs Market: 1268 is poor value based on its PE Ratio (54.5x) compared to the Hong Kong market (10.8x).


Price to Earnings Growth Ratio

PEG Ratio: 1268 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 1268 is overvalued based on its PB Ratio (13.1x) compared to the HK Specialty Retail industry average (1.2x).


Future Growth

How is China MeiDong Auto Holdings forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

32.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1268's forecast earnings growth (32.8% per year) is above the savings rate (1.5%).

Earnings vs Market: 1268's earnings (32.8% per year) are forecast to grow faster than the Hong Kong market (18.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1268's revenue (24.5% per year) is forecast to grow faster than the Hong Kong market (12.3% per year).

High Growth Revenue: 1268's revenue (24.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1268's Return on Equity is forecast to be high in 3 years time (37.5%)


Past Performance

How has China MeiDong Auto Holdings performed over the past 5 years?

36.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1268 has high quality earnings.

Growing Profit Margin: 1268's current net profit margins (3.7%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: 1268's earnings have grown significantly by 36.4% per year over the past 5 years.

Accelerating Growth: 1268's earnings growth over the past year (36.2%) is below its 5-year average (36.4% per year).

Earnings vs Industry: 1268 earnings growth over the past year (36.2%) exceeded the Specialty Retail industry 11.7%.


Return on Equity

High ROE: 1268's Return on Equity (23%) is considered high.


Financial Health

How is China MeiDong Auto Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1268's short term assets (CN¥5.1B) exceed its short term liabilities (CN¥3.1B).

Long Term Liabilities: 1268's short term assets (CN¥5.1B) exceed its long term liabilities (CN¥1.4B).


Debt to Equity History and Analysis

Debt Level: 1268's debt to equity ratio (28.6%) is considered satisfactory.

Reducing Debt: 1268's debt to equity ratio has reduced from 98% to 28.6% over the past 5 years.

Debt Coverage: 1268's debt is well covered by operating cash flow (124.5%).

Interest Coverage: 1268's interest payments on its debt are well covered by EBIT (10.4x coverage).


Balance Sheet


Dividend

What is China MeiDong Auto Holdings's current dividend yield, its reliability and sustainability?

1.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1268's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.05%).

High Dividend: 1268's dividend (1.14%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.48%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1268 has been paying a dividend for less than 10 years.

Growing Dividend: 1268's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.1%), 1268's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1268's dividends in 3 years are forecast to be covered by earnings (61.9% payout ratio).


Next Steps

Management

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

6.2yrs

Average board tenure


CEO

Tao Ye (54 yo)

13.58yrs

Tenure

CN¥4,861,000

Compensation

Mr. Tao Ye has been the Chief Executive Officer of China MeiDong Auto Holdings Limited since 2008 and Executive Director since November 24, 2012. Mr. Ye is responsible for overseeing the daily operations a...


CEO Compensation Analysis

Compensation vs Market: Tao's total compensation ($USD752.26K) is above average for companies of similar size in the Hong Kong market ($USD522.93K).

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


Board Members

Experienced Board: 1268's board of directors are considered experienced (6.2 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

China MeiDong Auto Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China MeiDong Auto Holdings Limited
  • Ticker: 1268
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: HK$50.798b
  • Shares outstanding: 1.25b
  • Website: https://www.meidongauto.com

Number of Employees


Location

  • China MeiDong Auto Holdings Limited
  • Unit A1, Tian An Tech Industry Building
  • 13th Floor
  • Dongguan
  • Guangdong Province
  • China

Listings


Biography

China MeiDong Auto Holdings Limited, an investment holding company, operates as an automobile dealer in the People’s Republic of China. The company is involved in the sale of new passenger cars and spare p...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 17:28
End of Day Share Price2021/08/03 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.