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1293

Grand Baoxin Auto GroupSEHK:1293 Stock Report

Market Cap

HK$2.1b

7D

-7.5%

1Y

-23.7%

Updated

03 Dec, 2021

Data

Company Financials +
1293 fundamental analysis
Snowflake Score
Valuation6/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends0/6

1293 Stock Overview

Grand Baoxin Auto Group Limited, an investment holding company, engages in the sale and service of motor vehicles primarily in Mainland China.

Price History & Performance

Summary of all time highs, changes and price drops for Grand Baoxin Auto Group
Historical stock prices
Current Share PriceHK$0.74
52 Week HighHK$1.87
52 Week LowHK$0.62
Beta0.92
1 Month Change-10.84%
3 Month Change-31.48%
1 Year Change-23.71%
3 Year Change-66.96%
5 Year Change-68.64%
Change since IPO-89.86%

Recent News & Updates

Oct 15
We Think Grand Baoxin Auto Group (HKG:1293) Is Taking Some Risk With Its Debt

We Think Grand Baoxin Auto Group (HKG:1293) Is Taking Some Risk With Its Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Sep 16
Is It Too Late To Consider Buying Grand Baoxin Auto Group Limited (HKG:1293)?

Is It Too Late To Consider Buying Grand Baoxin Auto Group Limited (HKG:1293)?

Grand Baoxin Auto Group Limited ( HKG:1293 ), is not the largest company out there, but it received a lot of attention...

Aug 29
Investors Will Want Grand Baoxin Auto Group's (HKG:1293) Growth In ROCE To Persist

Investors Will Want Grand Baoxin Auto Group's (HKG:1293) Growth In ROCE To Persist

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will...

Shareholder Returns

1293HK Specialty RetailHK Market
7D-7.5%-1.3%-1.4%
1Y-23.7%9.4%-5.9%

Return vs Industry: 1293 underperformed the Hong Kong Specialty Retail industry which returned 9.4% over the past year.

Return vs Market: 1293 underperformed the Hong Kong Market which returned -5.9% over the past year.

Price Volatility

Is 1293's price volatile compared to industry and market?
1293 volatility
1293 Average Weekly Movement7.5%
Specialty Retail Industry Average Movement6.5%
Market Average Movement6.8%
10% most volatile stocks in HK Market13.4%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 1293 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: 1293's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19997,042Xinming Wanghttps://www.klbaoxin.com

Grand Baoxin Auto Group Limited, an investment holding company, engages in the sale and service of motor vehicles primarily in Mainland China. It also offers after-sales services, such as maintenance, repair, and vehicle customization, as well as sells auto parts and related products; and sells accessories and other automobile related products, as well as used cars. In addition, the company provides auto insurance, retrofitting, and finance leasing services.

Grand Baoxin Auto Group Fundamentals Summary

How do Grand Baoxin Auto Group's earnings and revenue compare to its market cap?
1293 fundamental statistics
Market CapCN¥1.72b
Earnings (TTM)CN¥511.80m
Revenue (TTM)CN¥40.42b

3.4x

P/E Ratio

0.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1293 income statement (TTM)
RevenueCN¥40.42b
Cost of RevenueCN¥38.38b
Gross ProfitCN¥2.04b
ExpensesCN¥1.53b
EarningsCN¥511.80m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.18
Gross Margin5.06%
Net Profit Margin1.27%
Debt/Equity Ratio75.6%

How did 1293 perform over the long term?

See historical performance and comparison

Valuation

Is Grand Baoxin Auto 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

Below Fair Value: 1293 (HK$0.74) is trading below our estimate of fair value (HK$11.74)

Significantly Below Fair Value: 1293 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1293 is good value based on its PE Ratio (3.4x) compared to the Hong Kong Specialty Retail industry average (9.9x).

PE vs Market: 1293 is good value based on its PE Ratio (3.4x) compared to the Hong Kong market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1293 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 1293 is good value based on its PB Ratio (0.2x) compared to the HK Specialty Retail industry average (1x).


Future Growth

How is Grand Baoxin Auto Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

16.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1293's forecast earnings growth (16.2% per year) is above the savings rate (1.5%).

Earnings vs Market: 1293's earnings (16.2% per year) are forecast to grow slower than the Hong Kong market (17.2% per year).

High Growth Earnings: 1293's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1293's revenue (3.1% per year) is forecast to grow slower than the Hong Kong market (12.3% per year).

High Growth Revenue: 1293's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1293's Return on Equity is forecast to be low in 3 years time (8.4%).


Past Performance

How has Grand Baoxin Auto Group performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1293 has high quality earnings.

Growing Profit Margin: 1293's current net profit margins (1.3%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: 1293 has become profitable over the past 5 years, growing earnings by -2.2% per year.

Accelerating Growth: 1293's earnings growth over the past year (26.3%) exceeds its 5-year average (-2.2% per year).

Earnings vs Industry: 1293 earnings growth over the past year (26.3%) underperformed the Specialty Retail industry 51.1%.


Return on Equity

High ROE: 1293's Return on Equity (6%) is considered low.


Financial Health

How is Grand Baoxin Auto Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1293's short term assets (CN¥17.1B) exceed its short term liabilities (CN¥12.4B).

Long Term Liabilities: 1293's short term assets (CN¥17.1B) exceed its long term liabilities (CN¥5.2B).


Debt to Equity History and Analysis

Debt Level: 1293's net debt to equity ratio (53.9%) is considered high.

Reducing Debt: 1293's debt to equity ratio has reduced from 155.6% to 75.6% over the past 5 years.

Debt Coverage: 1293's debt is well covered by operating cash flow (34.8%).

Interest Coverage: 1293's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Dividend

What is Grand Baoxin Auto Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1293's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1293'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 1293's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1293's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1293 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 1293'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?

5.5yrs

Average management tenure


CEO

Xinming Wang (48 yo)

5.5yrs

Tenure

CN¥1,817,000

Compensation

Mr. Xinming Wang has been the President and Executive Director of Grand Baoxin Auto Group Limited since June 21, 2016. Mr. Wang has been the President of CGA since May 2016. He serves as President and Dire...


CEO Compensation Analysis

Compensation vs Market: Xinming's total compensation ($USD284.95K) is about average for companies of similar size in the Hong Kong market ($USD289.03K).

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


Leadership Team

Experienced Management: 1293's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: 1293's board of directors are considered experienced (3.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Grand Baoxin Auto Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Grand Baoxin Auto Group Limited
  • Ticker: 1293
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: HK$2.100b
  • Shares outstanding: 2.84b
  • Website: https://www.klbaoxin.com

Number of Employees


Location

  • Grand Baoxin Auto Group Limited
  • No. 3998 Hongxin Road
  • Minhang District
  • Shanghai
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 16:08
End of Day Share Price2021/12/03 00:00
Earnings2021/06/30
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.