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3836

China Harmony Auto Holding SEHK:3836 Stock Report

Last Price

HK$1.51

Market Cap

HK$2.3b

7D

-10.7%

1Y

-63.3%

Updated

01 Oct, 2022

Data

Company Financials +
3836 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends2/6

3836 Stock Overview

China Harmony Auto Holding Limited, an investment holding company, engages in the sale and service of motor vehicles in Mainland China.

China Harmony Auto Holding Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Harmony Auto Holding
Historical stock prices
Current Share PriceHK$1.51
52 Week HighHK$5.06
52 Week LowHK$1.38
Beta1.11
1 Month Change-28.44%
3 Month Change-57.58%
1 Year Change-63.26%
3 Year Change-41.92%
5 Year Change-69.49%
Change since IPO-70.39%

Recent News & Updates

Jul 07
Calculating The Intrinsic Value Of China Harmony Auto Holding Limited (HKG:3836)

Calculating The Intrinsic Value Of China Harmony Auto Holding Limited (HKG:3836)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of China Harmony Auto...

Shareholder Returns

3836HK Specialty RetailHK Market
7D-10.7%-4.3%-4.4%
1Y-63.3%-39.4%-28.8%

Return vs Industry: 3836 underperformed the Hong Kong Specialty Retail industry which returned -39.4% over the past year.

Return vs Market: 3836 underperformed the Hong Kong Market which returned -28.8% over the past year.

Price Volatility

Is 3836's price volatile compared to industry and market?
3836 volatility
3836 Average Weekly Movement5.6%
Specialty Retail Industry Average Movement5.7%
Market Average Movement6.4%
10% most volatile stocks in HK Market12.6%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 3836 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: 3836's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20053,901Fenglei Liuhttps://www.hexieauto.com

China Harmony Auto Holding Limited, an investment holding company, engages in the sale and service of motor vehicles in Mainland China. The company sells luxury and ultra-luxury passenger vehicles under the BMW, Lexus, Volvo, Audi, MINI, Jaguar, Land Rover, Lincoln, Alfa Romeo, Bentley, Rolls Royce, Ferrari, Lamborghini, and Maserati brands through its 76 dealership outlets. It also offers finance leasing and insurance agency services; and sells pre-owned motor vehicles, as well as imports vehicles.

China Harmony Auto Holding Fundamentals Summary

How do China Harmony Auto Holding's earnings and revenue compare to its market cap?
3836 fundamental statistics
Market CapHK$2.33b
Earnings (TTM)-HK$697.92m
Revenue (TTM)HK$18.26b

0.1x

P/S Ratio

-3.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3836 income statement (TTM)
RevenueCN¥16.55b
Cost of RevenueCN¥14.96b
Gross ProfitCN¥1.58b
Other ExpensesCN¥2.22b
Earnings-CN¥632.52m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.41
Gross Margin9.57%
Net Profit Margin-3.82%
Debt/Equity Ratio31.0%

How did 3836 perform over the long term?

See historical performance and comparison

Dividends

12.4%

Current Dividend Yield

-41%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 3836 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3836?

Other financial metrics that can be useful for relative valuation.

3836 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA3.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 3836's PS Ratio compare to its peers?

3836 PS Ratio vs Peers
The above table shows the PS ratio for 3836 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.2x
6909 BetterLife Holding
0.2x24.9%HK$1.8b
2337 United Strength Power Holdings
0.6xn/aHK$4.1b
1293 Grand Baoxin Auto Group
0.03x7.9%HK$1.1b
1771 Sunfonda Group Holdings
0.07xn/aHK$792.0m
3836 China Harmony Auto Holding
0.1x14.3%HK$2.3b

Price-To-Sales vs Peers: 3836 is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.2x).


Price to Earnings Ratio vs Industry

How does 3836's PE Ratio compare vs other companies in the HK Specialty Retail Industry?

Price-To-Sales vs Industry: 3836 is good value based on its Price-To-Sales Ratio (0.1x) compared to the Hong Kong Specialty Retail industry average (0.6x)


Price to Sales Ratio vs Fair Ratio

What is 3836's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3836 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.1x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: 3836 is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).


Share Price vs Fair Value

What is the Fair Price of 3836 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3836 (HK$1.51) is trading below our estimate of fair value (HK$3.04)

Significantly Below Fair Value: 3836 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is China Harmony Auto Holding forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


89.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3836 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 3836 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 3836 is expected to become profitable in the next 3 years.

Revenue vs Market: 3836's revenue (14.3% per year) is forecast to grow faster than the Hong Kong market (9.7% per year).

High Growth Revenue: 3836's revenue (14.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3836's Return on Equity is forecast to be low in 3 years time (11%).


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Past Performance

How has China Harmony Auto Holding performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-17.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3836 is currently unprofitable.

Growing Profit Margin: 3836 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 3836 is unprofitable, and losses have increased over the past 5 years at a rate of 17.6% per year.

Accelerating Growth: Unable to compare 3836's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 3836 is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-9.8%).


Return on Equity

High ROE: 3836 has a negative Return on Equity (-8.71%), as it is currently unprofitable.


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Financial Health

How is China Harmony Auto Holding's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3836's short term assets (CN¥7.1B) exceed its short term liabilities (CN¥4.1B).

Long Term Liabilities: 3836's short term assets (CN¥7.1B) exceed its long term liabilities (CN¥906.3M).


Debt to Equity History and Analysis

Debt Level: 3836's net debt to equity ratio (6.5%) is considered satisfactory.

Reducing Debt: 3836's debt to equity ratio has increased from 24.1% to 31% over the past 5 years.

Debt Coverage: 3836's debt is well covered by operating cash flow (42.4%).

Interest Coverage: 3836's interest payments on its debt are well covered by EBIT (17x coverage).


Balance Sheet


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Dividend

What is China Harmony Auto Holding current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


12.42%

Current Dividend Yield

Dividend Yield vs Market

China Harmony Auto Holding Dividend Yield vs Market
How does China Harmony Auto Holding dividend yield compare to the market?
SegmentDividend Yield
Company (China Harmony Auto Holding)12.4%
Market Bottom 25% (HK)3.0%
Market Top 25% (HK)8.9%
Industry Average (Specialty Retail)4.3%
Analyst forecast in 3 Years (China Harmony Auto Holding)13.3%

Notable Dividend: 3836's dividend (12.42%) is higher than the bottom 25% of dividend payers in the Hong Kong market (3.01%).

High Dividend: 3836's dividend (12.42%) is in the top 25% of dividend payers in the Hong Kong market (8.94%)


Stability and Growth of Payments

Stable Dividend: 3836 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3836's dividend payments have increased, but the company has only paid a dividend for 8 years.


Earnings Payout to Shareholders

Earnings Coverage: 3836 is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (146.8%), 3836's dividend payments are not well covered by cash flows.


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Management

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

4.1yrs

Average management tenure


CEO

Fenglei Liu (46 yo)

6.92yrs

Tenure

CN¥798,000

Compensation

Mr. Fenglei Liu has been Chief Executive Officer and Executive Director of China Harmony Auto Holding Limited (formerly known as China Harmony New Energy Auto Holding Limited) since October 19, 2015 and al...


CEO Compensation Analysis

Fenglei Liu's Compensation vs China Harmony Auto Holding Earnings
How has Fenglei Liu's remuneration changed compared to China Harmony Auto Holding's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

-CN¥633m

Mar 31 2022n/an/a

CN¥20m

Dec 31 2021CN¥798kCN¥750k

CN¥673m

Sep 30 2021n/an/a

CN¥620m

Jun 30 2021n/an/a

CN¥567m

Mar 31 2021n/an/a

CN¥489m

Dec 31 2020CN¥913kCN¥700k

CN¥411m

Sep 30 2020n/an/a

CN¥436m

Jun 30 2020n/an/a

CN¥462m

Mar 31 2020n/an/a

CN¥488m

Dec 31 2019CN¥1mCN¥750k

CN¥513m

Sep 30 2019n/an/a

CN¥529m

Jun 30 2019n/an/a

CN¥546m

Mar 31 2019n/an/a

CN¥615m

Dec 31 2018CN¥2mCN¥750k

CN¥684m

Sep 30 2018n/an/a

CN¥776m

Jun 30 2018n/an/a

CN¥869m

Mar 31 2018n/an/a

CN¥939m

Dec 31 2017CN¥2mCN¥540k

CN¥1b

Sep 30 2017n/an/a

CN¥449m

Jun 30 2017n/an/a

-CN¥112m

Mar 31 2017n/an/a

-CN¥241m

Dec 31 2016CN¥803kCN¥540k

-CN¥371m

Sep 30 2016n/an/a

CN¥110m

Jun 30 2016n/an/a

CN¥590m

Mar 31 2016n/an/a

CN¥577m

Dec 31 2015CN¥400kCN¥366k

CN¥563m

Compensation vs Market: Fenglei's total compensation ($USD112.17K) is below average for companies of similar size in the Hong Kong market ($USD311.56K).

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


Leadership Team

Experienced Management: 3836's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: 3836's board of directors are considered experienced (3.4 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

SEHK:3836 Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
30 Jun 22BuyHK$1,572,166Changge FengIndividual450,000HK$3.49
29 Jun 22BuyHK$1,932,644Changge FengIndividual583,000HK$3.31

Ownership Breakdown

What is the ownership structure of 3836?
Owner TypeNumber of SharesOwnership Percentage
Institutions88,343,5055.7%
Public Companies128,734,0008.4%
General Public612,554,92539.8%
Individual Insiders709,478,24746.1%

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


Top Shareholders

Top 3 shareholders own 0.020% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
0.015%
Allianz Asset Management AG
230,000CN¥347.3k-3.56%no data
0.0026%
Nengguang Wang
40,000CN¥60.4k0%no data
0.0026%
Invesco Ltd.
39,500CN¥59.6k0%no data

Company Information

China Harmony Auto Holding Limited's employee growth, exchange listings and data sources


Key Information

  • Name: China Harmony Auto Holding Limited
  • Ticker: 3836
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Automotive Retail
  • Sector: Retail
  • Implied Market Cap: HK$2.326b
  • Shares outstanding: 1.54b
  • Website: https://www.hexieauto.com

Number of Employees


Location

  • China Harmony Auto Holding Limited
  • World Trade Center Building
  • 15A, Tower A
  • Zhengzhou
  • Henan Province
  • 450000
  • China


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3836SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2013
HA5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2013

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.