SEHK:699

Stock Analysis Report

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Executive Summary

CAR Inc., an investment holding company, provides car and fleet rental services to individual and corporate customers in Mainland China. More Details


Snowflake Analysis

Slightly overvalued with worrying balance sheet.


Similar Companies

Share Price & News

How has CAR's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 699 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 699's weekly volatility has decreased from 13% to 7% over the past year.


Market Performance


7 Day Return

1.4%

699

2.0%

HK Transportation

1.4%

HK Market


1 Year Return

-35.2%

699

-8.0%

HK Transportation

11.5%

HK Market

Return vs Industry: 699 underperformed the Hong Kong Transportation industry which returned -8% over the past year.

Return vs Market: 699 underperformed the Hong Kong Market which returned 11.5% over the past year.


Shareholder returns

699IndustryMarket
7 Day1.4%2.0%1.4%
30 Day61.7%12.3%8.1%
90 Day43.6%5.4%6.1%
1 Year-35.2%-35.2%-5.2%-8.0%16.0%11.5%
3 Year-45.3%-45.3%-11.8%-18.7%1.7%-8.8%
5 Year-72.7%-72.7%15.3%-5.2%33.3%10.9%

Long-Term Price Volatility Vs. Market

How volatile is CAR's share price compared to the market and industry in the last 5 years?


Simply Wall St News

6 months ago | Simply Wall St

Is CAR (HKG:699) A Risky Investment?

Valuation

Is CAR 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: 699 (HK$3.72) is trading below our estimate of fair value (HK$71.69)

Significantly Below Fair Value: 699 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 699 is unprofitable, so we can't compare its PE Ratio to the XA Transportation industry average.

PE vs Market: 699 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 699's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 699 is overvalued based on its PB Ratio (1.8x) compared to the HK Transportation industry average (1.4x).


Next Steps

Future Growth

How is CAR forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

54.1%

Forecasted Transportation industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as CAR has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has CAR performed over the past 5 years?

-54.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 699 is currently unprofitable.

Growing Profit Margin: 699 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 699 is unprofitable, and losses have increased over the past 5 years at a rate of 54.4% per year.

Accelerating Growth: Unable to compare 699's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 699 is unprofitable, making it difficult to compare its past year earnings growth to the Transportation industry (-21.9%).


Return on Equity

High ROE: 699 has a negative Return on Equity (-120.22%), as it is currently unprofitable.


Next Steps

Financial Health

How is CAR's financial position?


Financial Position Analysis

Short Term Liabilities: 699's short term assets (CN¥2.5B) do not cover its short term liabilities (CN¥6.4B).

Long Term Liabilities: 699's short term assets (CN¥2.5B) do not cover its long term liabilities (CN¥3.7B).


Debt to Equity History and Analysis

Debt Level: 699's debt to equity ratio (200.5%) is considered high.

Reducing Debt: 699's debt to equity ratio has increased from 119.3% to 200.5% over the past 5 years.

Debt Coverage: 699's debt is well covered by operating cash flow (40.9%).

Interest Coverage: Insufficient data to determine if 699's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is CAR current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 699's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 699'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 699's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 699's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 699'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?

4.6yrs

Average management tenure


CEO

Yifan Song (44 yo)

4.58yrs

Tenure

CN¥16,010,000

Compensation

Ms. Yifan Song has been the Chief Executive Officer and Executive Director of CAR Inc. since April 11, 2016. Ms. Song served as an Executive Vice-President of CAR Inc. since May 15, 2014 and served as its ...


CEO Compensation Analysis

Compensation vs Market: Yifan's total compensation ($USD2.43M) is above average for companies of similar size in the Hong Kong market ($USD460.67K).

Compensation vs Earnings: Yifan's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Yifan Song
CEO & Executive Director4.58yrsCN¥16.01m1.82%
CN¥ 143.2m
Guangyu Cao
VP & CFO2.17yrsno datano data
Emily Paau
Director of Investor Relationsno datano datano data
Ka Man So
Company Secretary6.33yrsno datano data

4.6yrs

Average Tenure

44yo

Average Age

Experienced Management: 699's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yifan Song
CEO & Executive Director4.58yrsCN¥16.01m1.82%
CN¥ 143.2m
Linan Zhu
Non-Executive Director6.58yrsno datano data
Hanhui Sun
Independent Non-Executive Director6.25yrsCN¥689.00k0.024%
CN¥ 1.9m
Wei Ding
Independent Non-Executive Director6.25yrsCN¥689.00kno data
Li Zhang
Independent Non-Executive Director2.75yrsCN¥689.00kno data
Leping Yan
Non-Executive Director0.42yrno datano data

5.4yrs

Average Tenure

51yo

Average Age

Experienced Board: 699's board of directors are considered experienced (5.4 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

CAR Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CAR Inc.
  • Ticker: 699
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: HK$7.890b
  • Shares outstanding: 2.12b
  • Website: https://www.zuche.com

Number of Employees


Location

  • CAR Inc.
  • UCAR PARK
  • No. 118 East Zhongguancun Road
  • Beijing
  • 100098
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
699SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2014
85CDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2014
699SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 2014
699SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 2014

Biography

CAR Inc., an investment holding company, provides car and fleet rental services to individual and corporate customers in Mainland China. The company offers short-term rentals for local and inter-city trave...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/28 10:14
End of Day Share Price2020/11/27 00:00
Earnings2020/06/30
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.