SEHK:1268

Stock Analysis Report

China MeiDong Auto Holdings

Executive Summary

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

Snowflake

Fundamentals

Outstanding track record with high growth potential.

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


Market Performance


7 Day Return

-2.6%

1268

0.2%

HK Specialty Retail

2.2%

HK Market


1 Year Return

100.3%

1268

-4.8%

HK Specialty Retail

-1.3%

HK Market

Return vs Industry: 1268 exceeded the Hong Kong Specialty Retail industry which returned -4.8% over the past year.

Return vs Market: 1268 exceeded the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

1268IndustryMarket
7 Day-2.6%0.2%2.2%
30 Day3.4%-5.0%-2.9%
90 Day16.2%-8.9%-5.8%
1 Year104.3%100.3%0.3%-4.8%2.3%-1.3%
3 Year701.9%610.5%19.4%5.9%15.6%3.9%
5 Year369.8%285.7%-9.7%-27.1%20.1%0.06%

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 based on future cash flows and its price relative to the stock market?

15.95x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: 1268 (HK$6.75) is trading above our estimate of fair value (HK$5.66)

Significantly Undervalued: 1268 is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: 1268 is poor value based on its PE Ratio (15.9x) compared to the Specialty Retail industry average (11.7x).

PE vs Market: 1268 is poor value based on its PE Ratio (15.9x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: 1268 is good value based on its PEG Ratio (0.7x)


Price Based on Value of Assets

PB vs Industry: 1268 is overvalued based on its PB Ratio (4.9x) compared to the HK Specialty Retail industry average (0.7x).


Next Steps

Future Growth

How is China MeiDong Auto Holdings expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

23.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 1268's forecast earnings growth (23.9% per year) is above the savings rate (2%).

Earnings vs Market: 1268's earnings (23.9% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

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

Revenue vs Market: 1268's revenue (17.1% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 1268's revenue (17.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 1268's Return on Equity is forecast to be high in 3 years time (32.2%)


Next Steps

Past Performance

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

32.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1268's earnings have grown significantly by 32.9% per year over the past 5 years.

Accelerating Growth: 1268's earnings growth over the past year (35.5%) exceeds its 5-year average (32.9% per year).

Earnings vs Industry: 1268 earnings growth over the past year (35.5%) exceeded the Specialty Retail industry 1.4%.


Return on Equity

High ROE: 1268's Return on Equity (30.2%) is considered high.


Return on Assets

ROA vs Industry: 1268 has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: 1268 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is China MeiDong Auto Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1268's short term assets (CN¥3.1B) exceeds its short term liabilities (CN¥2.7B)

Long Term Liabilities: 1268's short term assets (3.1B) exceeds its long term liabilities (893.0M)


Debt to Equity History and Analysis

Debt Level: 1268's debt to equity ratio (81.2%) is considered high

Reducing Debt: 1268's debt to equity ratio has reduced from 154.2% to 81.2% over the past 5 years.

Debt Coverage: 1268's debt is well covered by operating cash flow (54.5%).

Interest Coverage: 1268's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet

Inventory Level: 1268 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1268's debt is covered by short term assets (assets are 2.601400x debt).


Next Steps

Dividend

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

3.68%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase China MeiDong Auto Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.4%marketbottom25%2.3%markettop25%6.3%industryaverage6.0%forecastin3Years3.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 1268's dividend (2.39%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1268's dividend (2.39%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.1%), 1268's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1268's dividends in 3 years are forecast to be well covered by earnings (36.9% payout ratio).


Next Steps

Management

What is the CEO of China MeiDong Auto Holdings's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average board tenure


CEO

Tao Ye (52yo)

0yrs

Tenure

CN¥5,459,000

Compensation

Mr. Tao Ye serves as the Chief Executive Officer of China MeiDong Auto Holdings Limited. Mr. Ye is responsible for overseeing the daily operations and management of the Group, planning its business and mar ...


CEO Compensation Analysis

Compensation vs. Market: Tao's total compensation ($USD770.16K) is about average for companies of similar size in the Hong Kong market ($USD420.49K).

Compensation vs Earnings: Tao's compensation has increased by more than 20% in the past year.


Board Age and Tenure

4.3yrs

Average Tenure

48yo

Average Age

Experienced Board: 1268's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Tao Ye (52yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥5.46m
  • Fan Ye (47yo)

    Founder and Chairman

    • Tenure: 0yrs
    • Compensation: CN¥3.11m
  • Xuehua Liu (55yo)

    Senior Consultant

    • Tenure: 0yrs
    • Compensation: CN¥2.72m
  • Feixue Wang (38yo)

    Vice President of Sales & Marketing

    • Tenure: 0yrs
  • Liuyu Luo (35yo)

    VP of Human Resources & Administration and Executive Director

    • Tenure: 0.6yrs
  • Johnny Wong (36yo)

    Company Secretary

    • Tenure: 0yrs
  • Ying Yuan (38yo)

    Financial Controller

    • Tenure: 0yrs

Board Members

  • Tao Ye (52yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥5.46m
  • Terence Jip (49yo)

    Independent Non-Executive Director

    • Tenure: 5.9yrs
    • Compensation: CN¥139.00k
  • Fan Ye (47yo)

    Founder and Chairman

    • Tenure: 0yrs
    • Compensation: CN¥3.11m
  • Liuyu Luo (35yo)

    VP of Human Resources & Administration and Executive Director

    • Tenure: 0.6yrs
  • Michael Wang (49yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥84.00k
  • Guiyi Chen (40yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: CN¥84.00k

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: 2004
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: HK$7.759b
  • Shares outstanding: 1.16b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1268SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2013
55MBST (Boerse-Stuttgart)YesOrdinary SharesDEEURDec 2013

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 Analysis2019/10/14 12:52
End of Day Share Price2019/10/14 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.

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