China MeiDong Auto Holdings Limited

SHSC:1268 Stock Report

Market Cap: HK$3.5b

China MeiDong Auto Holdings Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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$2.62) is trading below our estimate of fair value (HK$12.81)

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?

Other financial metrics that can be useful for relative valuation.

1268 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/EBITDA5.5x
PEG Ratio0.4x

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 Average17.5x
3669 China Yongda Automobiles Services Holdings
5.6x16.0%HK$3.4b
2473 XXF Group Holdings
23.2xn/aHK$2.7b
2337 United Strength Power Holdings
33xn/aHK$1.4b
6909 BetterLife Holding
8.3xn/aHK$572.7m
1268 China MeiDong Auto Holdings
19.6x48.3%HK$3.5b

Price-To-Earnings vs Peers: 1268 is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the peer average (17.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 1268 is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the Hong Kong Specialty Retail industry average (7.8x).


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 Ratio19.6x
Fair PE Ratio28.3x

Price-To-Earnings vs Fair Ratio: 1268 is good value based on its Price-To-Earnings Ratio (19.6x) compared to the estimated Fair Price-To-Earnings Ratio (28.3x).


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$2.62
HK$4.11
+56.9%
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$5.86n/a11
Oct ’24HK$4.29
HK$10.11
+135.6%
42.9%HK$20.06HK$5.87n/a12
Sep ’24HK$5.91
HK$13.82
+133.8%
32.6%HK$20.84HK$7.60n/a13
Aug ’24HK$8.38
HK$16.21
+93.4%
23.6%HK$21.92HK$10.03n/a13
Jul ’24HK$9.05
HK$19.04
+110.4%
13.4%HK$22.68HK$12.75n/a13
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
Oct ’23HK$12.42
HK$30.59
+146.3%
36.6%HK$54.52HK$17.80HK$4.2913
Sep ’23HK$15.92
HK$36.90
+131.8%
28.9%HK$55.86HK$20.00HK$5.9113
Aug ’23HK$18.50
HK$39.84
+115.4%
22.3%HK$57.22HK$25.09HK$8.3813
Jul ’23HK$24.70
HK$41.99
+70.0%
16.9%HK$57.61HK$31.85HK$9.0513
Jun ’23HK$28.80
HK$43.39
+50.7%
17.6%HK$57.70HK$31.90HK$9.9413

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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