SEHK:1293

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Grand Baoxin Auto Group

Executive Summary

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


Snowflake Analysis

Very undervalued with solid track record.

Share Price & News

How has Grand Baoxin Auto Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1293's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

1293

7.1%

HK Specialty Retail

5.0%

HK Market


1 Year Return

-65.2%

1293

13.1%

HK Specialty Retail

-5.3%

HK Market

Return vs Industry: 1293 underperformed the Hong Kong Specialty Retail industry which returned 11.4% over the past year.

Return vs Market: 1293 underperformed the Hong Kong Market which returned -6.5% over the past year.


Shareholder returns

1293IndustryMarket
7 Day0%7.1%5.0%
30 Day3.4%14.9%4.0%
90 Day-25.2%12.2%-4.0%
1 Year-65.2%-65.2%18.0%13.1%-1.9%-5.3%
3 Year-73.5%-74.2%14.4%1.0%-0.5%-10.9%
5 Year-82.8%-83.5%9.9%-10.0%-9.0%-23.5%

Price Volatility Vs. Market

How volatile is Grand Baoxin Auto Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

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$0.92) is trading below our estimate of fair value (HK$2.68)

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 (3.8x) compared to the Specialty Retail industry average (9.6x).

PE vs Market: 1293 is good value based on its PE Ratio (3.8x) compared to the Hong Kong market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 1293 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 1293 is good value based on its PB Ratio (0.3x) compared to the HK Specialty Retail industry average (0.8x).


Next Steps

Future Growth

How is Grand Baoxin Auto Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1293's forecast earnings growth (10.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 1293's earnings (10.4% per year) are forecast to grow slower than the Hong Kong market (16.9% per year).

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

Revenue vs Market: 1293's revenue (4.8% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).

High Growth Revenue: 1293's revenue (4.8% 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%).


Next Steps

Past Performance

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

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1293 has high quality earnings.

Growing Profit Margin: 1293's current net profit margins (1.7%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: 1293's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: 1293's earnings growth over the past year (13.1%) exceeds its 5-year average (10.7% per year).

Earnings vs Industry: 1293 earnings growth over the past year (13.1%) exceeded the Specialty Retail industry -15.2%.


Return on Equity

High ROE: 1293's Return on Equity (8.1%) is considered low.


Next Steps

Financial Health

How is Grand Baoxin Auto Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1293's short term assets (CN¥19.6B) exceed its short term liabilities (CN¥17.4B).

Long Term Liabilities: 1293's short term assets (CN¥19.6B) exceed its long term liabilities (CN¥3.7B).


Debt to Equity History and Analysis

Debt Level: 1293's debt to equity ratio (125.4%) is considered high.

Reducing Debt: 1293's debt to equity ratio has reduced from 157.7% to 125.4% over the past 5 years.

Debt Coverage: 1293's debt is not well covered by operating cash flow (6.9%).

Interest Coverage: 1293's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

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

3.99%

Forecast Dividend Yield


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?

10.2yrs

Average management tenure


CEO

Xinming Wang (46yo)

4yrs

Tenure

CN¥2,531,000

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 ($USD356.41K) is about average for companies of similar size in the Hong Kong market ($USD420.94K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jianping Li
Executive Chairman4yrsCN¥2.73mno data
Xinming Wang
President & Executive Director4yrsCN¥2.53mno data
Ao Lu
Executive Director4yrsCN¥1.67mno data
Xing Xu
VP, Joint Company Secretary & Executive Director2.67yrsCN¥1.37mno data
Changdong Chen
Chief Financial Officer16.42yrsno datano data
Qizhu Zhou
Chief Supervisor of Audit Department16.42yrsno datano data

10.2yrs

Average Tenure

52yo

Average Age

Experienced Management: 1293's management team is seasoned and experienced (10.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jianping Li
Executive Chairman4yrsCN¥2.73mno data
Xinming Wang
President & Executive Director4yrsCN¥2.53mno data
Ao Lu
Executive Director4yrsCN¥1.67mno data
Xing Xu
VP, Joint Company Secretary & Executive Director2.67yrsCN¥1.37mno data
Wan Chan
Independent Non-Executive Director8.58yrsCN¥267.00kno data
Jianshen Diao
Independent Non-Executive Director8.58yrsCN¥267.00kno data
Yangfang Liu
Independent Non-Executive Director2yrsCN¥267.00kno data

4.0yrs

Average Tenure

46yo

Average Age

Experienced Board: 1293's board of directors are considered experienced (4 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

Grand Baoxin Auto Group Limited's company bio, 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$2.611b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1293SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2011
6BADB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2011
BAOX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2011
1293SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2011
1293SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2011

Biography

Grand Baoxin Auto Group Limited, an investment holding company, engages in the sale and service of motor vehicles primarily in Mainland China. The company also provides after-sales services, such as maintenance, repair, and vehicle customization, as well as sells related auto parts; sells accessories and other automobile related products, as well as used cars; and provides auto insurance services. In addition, it offers finance leasing, insurance agency, real estate, services. As of December 31, 2018, Grand Baoxin Auto Group Limited operated 113 stores, including 91 luxury and ultra-luxury brand dealing stores, 17 mid-to-high brand dealing stores and 5 independent after-sales service stores. The company was formerly known as Baoxin Auto Group Limited and changed its name to Grand Baoxin Auto Group Limited in April 2017. Grand Baoxin Auto Group Limited was founded in 1999 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 13:23
End of Day Share Price2020/06/03 00:00
Earnings2019/12/31
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.