China MeiDong Auto Holdings Limited

SHSC:1268 Stock Report

Market Cap: HK$3.0b

China MeiDong Auto Holdings Valuation

Is 1268 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1268 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1268 (HK$2.21) is trading below our estimate of fair value (HK$6.81)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1268?

Key metric: As 1268 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1268. This is calculated by dividing 1268's market cap by their current earnings.
What is 1268's PE Ratio?
PE Ratio37.3x
EarningsCN¥74.21m
Market CapCN¥2.77b

Price to Earnings Ratio vs Peers

How does 1268's PE Ratio compare to its peers?

The above table shows the PE ratio for 1268 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.1x
3669 China Yongda Automobiles Services Holdings
11.8x23.5%HK$3.5b
2473 XXF Group Holdings
109.1xn/aHK$7.9b
2337 United Strength Power Holdings
10.1xn/aHK$651.6m
6909 BetterLife Holding
9.5xn/aHK$560.3m
1268 China MeiDong Auto Holdings
37.3x79.0%HK$3.0b

Price-To-Earnings vs Peers: 1268 is expensive based on its Price-To-Earnings Ratio (37.3x) compared to the peer average (35.1x).

Price to Earnings Ratio vs Industry

How does 1268's PE Ratio compare vs other companies in the HK Specialty Retail Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
84 Stelux Holdings International
0.2xn/aUS$9.99m
No more companies available in this PE range
1268 37.3xIndustry Avg. 9.6xNo. of Companies10PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1268 is expensive based on its Price-To-Earnings Ratio (37.3x) compared to the Hong Kong Specialty Retail industry average (9.6x).

Price to Earnings Ratio vs Fair Ratio

What is 1268's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1268 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.3x
Fair PE Ratio30.8x

Price-To-Earnings vs Fair Ratio: 1268 is expensive based on its Price-To-Earnings Ratio (37.3x) compared to the estimated Fair Price-To-Earnings Ratio (30.8x).

Analyst Price Targets

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

The above table shows the analyst 1268 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$2.21
HK$2.51
+13.4%
33.1%HK$4.54HK$1.61n/a10
Nov ’25HK$2.27
HK$2.51
+10.4%
33.1%HK$4.54HK$1.61n/a10
Oct ’25HK$2.89
HK$2.51
-13.3%
33.1%HK$4.54HK$1.61n/a10
Sep ’25HK$1.74
HK$3.83
+120.0%
49.9%HK$8.27HK$1.92n/a8
Aug ’25HK$1.96
HK$3.78
+92.9%
42.5%HK$8.14HK$2.30n/a10
Jul ’25HK$2.10
HK$4.11
+95.7%
37.8%HK$8.11HK$2.97n/a10
Jun ’25HK$2.51
HK$4.11
+63.7%
37.8%HK$8.11HK$2.97n/a10
May ’25HK$2.55
HK$4.54
+78.0%
43.7%HK$8.70HK$2.98n/a11
Apr ’25HK$3.02
HK$4.91
+62.4%
40.3%HK$8.72HK$2.98n/a12
Mar ’25HK$3.10
HK$5.54
+78.6%
37.2%HK$8.74HK$2.99n/a12
Feb ’25HK$2.75
HK$5.81
+111.1%
34.6%HK$8.80HK$3.01n/a11
Jan ’25HK$4.75
HK$7.34
+54.6%
14.6%HK$8.85HK$5.07n/a11
Dec ’24HK$3.94
HK$8.68
+120.2%
43.8%HK$20.43HK$5.98n/a11
Nov ’24HK$4.31
HK$9.13
+111.9%
43.1%HK$20.04HK$5.86HK$2.2711
Oct ’24HK$4.29
HK$10.11
+135.6%
42.9%HK$20.06HK$5.87HK$2.8912
Sep ’24HK$5.91
HK$13.82
+133.8%
32.6%HK$20.84HK$7.60HK$1.7413
Aug ’24HK$8.38
HK$16.21
+93.4%
23.6%HK$21.92HK$10.03HK$1.9613
Jul ’24HK$9.05
HK$19.04
+110.4%
13.4%HK$22.68HK$12.75HK$2.1013
Jun ’24HK$9.94
HK$20.10
+102.2%
9.0%HK$23.24HK$16.46HK$2.5113
May ’24HK$12.14
HK$20.54
+69.2%
8.8%HK$23.91HK$16.93HK$2.5513
Apr ’24HK$16.94
HK$22.51
+32.9%
18.8%HK$34.15HK$17.00HK$3.0213
Mar ’24HK$18.40
HK$24.13
+31.1%
16.7%HK$33.37HK$18.65HK$3.1014
Feb ’24HK$19.78
HK$24.00
+21.4%
20.1%HK$34.00HK$16.32HK$2.7514
Jan ’24HK$16.02
HK$26.72
+66.8%
33.0%HK$49.66HK$15.83HK$4.7512
Dec ’23HK$15.80
HK$25.71
+62.7%
32.9%HK$47.86HK$15.26HK$3.9412
Nov ’23HK$11.16
HK$25.71
+130.4%
32.9%HK$47.86HK$15.26HK$4.3112

Analyst Forecast: Target price is less than 20% higher than the current share price.

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