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Zhongsheng Group Holdings

OTCPK:ZSHG.Y
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ZSHG.Y
OTCPK
HK$44B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

Zhongsheng Group Holdings Limited, an investment holding company, engages in the sale and service of motor vehicles. The last earnings update was 52 days ago. More info.


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ZSHG.Y Share Price and Events
7 Day Returns
0%
OTCPK:ZSHG.Y
2.2%
US Specialty Retail
0.5%
US Market
1 Year Returns
-20.4%
OTCPK:ZSHG.Y
1.3%
US Specialty Retail
0.8%
US Market
ZSHG.Y Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Zhongsheng Group Holdings (ZSHG.Y) 0% 0% - -20.4% - -
US Specialty Retail 2.2% -1.6% 1.8% 1.3% 28.7% 42.9%
US Market 0.5% 0.2% 1.1% 0.8% 37.4% 37.5%
1 Year Return vs Industry and Market
  • ZSHG.Y underperformed the Specialty Retail industry which returned 1.3% over the past year.
  • ZSHG.Y underperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
ZSHG.Y
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Zhongsheng Group Holdings's competitors could be found in our database.

ZSHG.Y Value

 Is Zhongsheng Group Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Zhongsheng Group Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Zhongsheng Group Holdings.

OTCPK:ZSHG.Y Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:ZSHG.Y
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.865 (1 + (1- 25%) (68.67%))
1.208
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.208 * 5.96%)
9.93%

Discounted Cash Flow Calculation for OTCPK:ZSHG.Y using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Zhongsheng Group Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:ZSHG.Y DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 9.93%)
2019 2,804.67 Analyst x3 2,551.33
2020 3,798.25 Analyst x4 3,143.08
2021 2,732.67 Analyst x3 2,057.05
2022 2,130.43 Est @ -22.04% 1,458.85
2023 1,819.21 Est @ -14.61% 1,133.22
2024 1,648.09 Est @ -9.41% 933.89
2025 1,553.07 Est @ -5.77% 800.55
2026 1,503.11 Est @ -3.22% 704.82
2027 1,481.57 Est @ -1.43% 631.97
2028 1,478.84 Est @ -0.18% 573.83
Present value of next 10 years cash flows CN¥13,988.57
OTCPK:ZSHG.Y DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥1,478.84 × (1 + 2.73%) ÷ (9.93% – 2.73%)
CN¥21,101.73
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥21,101.73 ÷ (1 + 9.93%)10
CN¥8,187.97
OTCPK:ZSHG.Y Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥13,988.57 + CN¥8,187.97
CN¥22,176.54
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥22,176.54 / 2,271.70
CN¥6.98
OTCPK:ZSHG.Y Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:881)
1.13
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥9.76 x 1.13
HK$11.03
Value per share (USD) From above. $15.43
Current discount Discount to share price of $27.05
= -1 x ($27.05 - $15.43) / $15.43
-75.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Zhongsheng Group Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Zhongsheng Group Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Zhongsheng Group Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:ZSHG.Y PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥1.60
SEHK:881 Share Price ** SEHK (2019-04-17) in HKD HK$19.34
SEHK:881 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.885 CN¥17.11
United States of America Specialty Retail Industry PE Ratio Median Figure of 63 Publicly-Listed Specialty Retail Companies 14.41x
United States of America Market PE Ratio Median Figure of 3,091 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Zhongsheng Group Holdings.

OTCPK:ZSHG.Y PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:881 Share Price ÷ EPS (both in CNY)

= 17.11 ÷ 1.60

10.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zhongsheng Group Holdings is good value based on earnings compared to the US Specialty Retail industry average.
  • Zhongsheng Group Holdings is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Zhongsheng Group Holdings's expected growth come at a high price?
Raw Data
OTCPK:ZSHG.Y PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.68x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
16.9%per year
United States of America Specialty Retail Industry PEG Ratio Median Figure of 55 Publicly-Listed Specialty Retail Companies 1.64x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

OTCPK:ZSHG.Y PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.68x ÷ 16.9%

0.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zhongsheng Group Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Zhongsheng Group Holdings's assets?
Raw Data
OTCPK:ZSHG.Y PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥8.03
SEHK:881 Share Price * SEHK (2019-04-17) in HKD HK$19.34
SEHK:881 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.885 CN¥17.11
United States of America Specialty Retail Industry PB Ratio Median Figure of 101 Publicly-Listed Specialty Retail Companies 1.34x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
OTCPK:ZSHG.Y PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:881 Share Price ÷ Book Value per Share (both in CNY)

= 17.11 ÷ 8.03

2.13x

* Primary Listing of Zhongsheng Group Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zhongsheng Group Holdings is overvalued based on assets compared to the US Specialty Retail industry average.
X
Value checks
We assess Zhongsheng Group Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. Zhongsheng Group Holdings has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ZSHG.Y Future Performance

 How is Zhongsheng Group Holdings expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Zhongsheng Group Holdings expected to grow at an attractive rate?
  • Zhongsheng Group Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Zhongsheng Group Holdings's earnings growth is expected to exceed the United States of America market average.
  • Zhongsheng Group Holdings's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:ZSHG.Y Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:ZSHG.Y Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 16.9%
OTCPK:ZSHG.Y Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 10.4%
United States of America Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 10.1%
United States of America Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:ZSHG.Y Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:ZSHG.Y Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 147,240 7,652 6,109 9
2020-12-31 137,761 6,633 5,147 15
2019-12-31 124,233 5,098 4,356 16
OTCPK:ZSHG.Y Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 107,736 2,318 3,637
2018-09-30 102,505 3,353 3,734
2018-06-30 97,274 4,388 3,832
2018-03-31 91,782 4,811 3,591
2017-12-31 86,290 5,235 3,350
2017-09-30 82,235 4,644 2,977
2017-06-30 78,179 4,053 2,603
2017-03-31 74,889 4,283 2,232
2016-12-31 71,599 4,513 1,860
2016-09-30 67,799 4,071 1,312
2016-06-30 63,998 3,630 764
2016-03-31 61,570 4,141 612

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Zhongsheng Group Holdings's earnings are expected to grow by 16.9% yearly, however this is not considered high growth (20% yearly).
  • Zhongsheng Group Holdings's revenue is expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:ZSHG.Y Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Zhongsheng Group Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:ZSHG.Y Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.55 2.94 2.14 7.00
2020-12-31 2.18 2.49 1.76 12.00
2019-12-31 1.87 1.97 1.69 12.00
OTCPK:ZSHG.Y Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 1.60
2018-09-30 1.65
2018-06-30 1.69
2018-03-31 1.60
2017-12-31 1.52
2017-09-30 1.37
2017-06-30 1.21
2017-03-31 1.04
2016-12-31 0.87
2016-09-30 0.61
2016-06-30 0.36
2016-03-31 0.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Zhongsheng Group Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Zhongsheng Group Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Zhongsheng Group Holdings has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ZSHG.Y Past Performance

  How has Zhongsheng Group Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Zhongsheng Group Holdings's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Zhongsheng Group Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Zhongsheng Group Holdings's 1-year earnings growth is less than its 5-year average (8.5% vs 39.6%)
  • Zhongsheng Group Holdings's earnings growth has not exceeded the US Specialty Retail industry average in the past year (8.5% vs 11%).
Earnings and Revenue History
Zhongsheng Group Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Zhongsheng Group Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:ZSHG.Y Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 107,735.66 3,636.64 6,055.93
2018-09-30 102,504.61 3,734.43 5,657.14
2018-06-30 97,273.57 3,832.22 5,258.35
2018-03-31 91,781.93 3,591.32 4,949.86
2017-12-31 86,290.29 3,350.41 4,641.37
2017-09-30 82,234.75 2,976.91 4,369.44
2017-06-30 78,179.21 2,603.40 4,097.52
2017-03-31 74,889.22 2,231.81 4,041.51
2016-12-31 71,599.22 1,860.23 3,985.49
2016-09-30 67,798.53 1,311.88 3,988.71
2016-06-30 63,997.84 763.54 3,991.92
2016-03-31 61,570.22 612.25 3,877.66
2015-12-31 59,142.61 460.96 3,763.41
2015-09-30 57,015.27 470.92 3,612.05
2015-06-30 54,887.94 480.88 3,460.69
2015-03-31 54,837.30 615.89 3,407.82
2014-12-31 54,786.66 750.91 3,354.95
2014-09-30 54,745.60 926.08 3,308.26
2014-06-30 54,704.55 1,101.26 3,261.58
2014-03-31 53,615.96 1,055.66 3,160.62
2013-12-31 52,527.38 1,010.07 3,059.66
2013-09-30 51,463.49 939.53 2,926.69
2013-06-30 50,399.61 869.00 2,793.72
2013-03-31 50,223.95 809.74 2,791.86
2012-12-31 50,048.29 750.48 2,790.00
2012-09-30 49,909.54 1,013.93 2,665.04
2012-06-30 49,770.79 1,277.39 2,540.09

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Zhongsheng Group Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Zhongsheng Group Holdings used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.
  • Zhongsheng Group Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Zhongsheng Group Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Zhongsheng Group Holdings has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ZSHG.Y Health

 How is Zhongsheng Group Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Zhongsheng Group Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Zhongsheng Group Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Zhongsheng Group Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Zhongsheng Group Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Zhongsheng Group Holdings Company Filings, last reported 5 months ago.

OTCPK:ZSHG.Y Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 19,036.22 26,694.89 6,714.90
2018-09-30 19,036.22 26,694.89 6,714.90
2018-06-30 17,570.33 26,305.05 6,858.83
2018-03-31 17,570.33 26,305.05 6,858.83
2017-12-31 16,669.16 21,207.07 5,402.37
2017-09-30 16,669.16 21,207.07 5,402.37
2017-06-30 15,257.85 18,629.55 4,653.82
2017-03-31 15,257.85 18,629.55 4,653.82
2016-12-31 13,098.96 18,028.70 4,503.34
2016-09-30 13,098.96 18,028.70 4,503.34
2016-06-30 12,052.65 17,023.75 3,195.93
2016-03-31 12,052.65 17,023.75 3,195.93
2015-12-31 12,616.00 19,261.60 4,699.32
2015-09-30 12,616.00 19,261.60 4,699.32
2015-06-30 12,605.45 18,607.18 3,507.06
2015-03-31 12,605.45 18,607.18 3,507.06
2014-12-31 12,380.93 20,312.81 4,410.06
2014-09-30 12,380.93 20,312.81 4,410.06
2014-06-30 12,225.33 19,114.76 4,586.58
2014-03-31 12,225.33 19,114.76 4,586.58
2013-12-31 9,697.13 17,321.93 3,909.68
2013-09-30 9,697.13 17,321.93 3,909.68
2013-06-30 9,193.52 16,061.91 3,579.35
2013-03-31 9,193.52 16,061.91 3,579.35
2012-12-31 8,829.89 16,320.37 4,348.66
2012-09-30 8,829.89 16,320.37 4,348.66
2012-06-30 8,390.89 14,912.05 4,168.69
  • Zhongsheng Group Holdings's level of debt (140.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (178.3% vs 140.2% today).
  • Debt is not well covered by operating cash flow (8.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.5x coverage).
X
Financial health checks
We assess Zhongsheng Group Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Zhongsheng Group Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ZSHG.Y Dividends

 What is Zhongsheng Group Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.85%
Current annual income from Zhongsheng Group Holdings dividends. Estimated to be 2.58% next year.
If you bought $2,000 of Zhongsheng Group Holdings shares you are expected to receive $37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Zhongsheng Group Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Zhongsheng Group Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:ZSHG.Y Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United States of America Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 39 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:ZSHG.Y Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.53 9.00
2020-12-31 0.45 13.00
2019-12-31 0.38 15.00
OTCPK:ZSHG.Y Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-25 0.317 1.928
2018-04-20 0.300 1.922
2018-03-19 0.300 1.716
2017-03-20 0.270 2.039
2016-06-17 0.042 0.730
2016-04-28 0.040 1.188
2016-03-31 0.040 1.219
2015-04-29 0.072 2.192
2014-07-21 0.095 1.634
2014-04-29 0.100 1.274
2014-03-31 0.100 1.244
2013-09-18 0.078 0.868
2013-04-29 0.080 1.078
2013-03-25 0.080 0.993
2012-03-26 0.128 1.489
2011-03-21 0.097 0.851

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Zhongsheng Group Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Zhongsheng Group Holdings only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Zhongsheng Group Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.8x coverage).
X
Income/ dividend checks
We assess Zhongsheng Group Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Zhongsheng Group Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Zhongsheng Group Holdings has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ZSHG.Y Management

 What is the CEO of Zhongsheng Group Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Guoqiang Li
COMPENSATION CN¥13,762,000
AGE 55
TENURE AS CEO 21.4 years
CEO Bio

Mr. Li Guoqiang founded Zhongsheng Group Holdings Limited and serves as its Chief Executive Officer and President since 1998. Mr. Li is responsible for the overall management and operations of the Group. He has more than 20 years experience of the PRC automobile industry. In 1995, he founded Dalian Aotong Automobile Repair & Assembly Factory (‘‘Aotong Repair & Assembly’’), a company engaged in automobile repair and maintenance services. He served as the Factory Director and Legal Representative of Aotong Repair & Assembly and responsible for its overall management and operations. In 1998, Mr. Li founded Dalian Aotong Industry Co., Ltd. (''Aotong Industry''), a company engaged in distribution of automobiles. He has substantial senior management experience and more than 20 years' of experience and in-depth knowledge of the PRC automobile industry. He served as General Manager of Dalian Bonded Zone Toyota Automobile Sales Co., Ltd., and responsible for the decisions of procurement and sales of automobiles as well as the management of the national distribution networks during his tenure from 1996 to 1998. Mr. Li has been the Vice Chairman of Zhongsheng Group Holdings Limited since June 23,2008. From 1996 to 1998, he served as the Vice Chairman of Dalian Toyota Maintenance & Service Co., Ltd. He has been an Executive Director of Zhongsheng Group Holdings Limited since June 23, 2008. He has been the Deputy Chairman and a member of standing committee at China Automobile Dealers Association since December 2009. Mr. Li also received a Distinguished Lexus Dealer award in 2007 from Toyota Motor (China) Investment Co., Ltd., as part of the Lexus Certification Program.

CEO Compensation
  • Guoqiang's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Guoqiang's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Zhongsheng Group Holdings management team in years:

12.4
Average Tenure
55.5
Average Age
  • The average tenure for the Zhongsheng Group Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Yi Huang

TITLE
Co-Founder & Chairman
COMPENSATION
CN¥11M
AGE
56

Guoqiang Li

TITLE
Co-Founder
COMPENSATION
CN¥14M
AGE
55
TENURE
21.4 yrs

Qingshan Du

TITLE
Deputy GM & Executive Director
COMPENSATION
CN¥20M
AGE
56
TENURE
12.4 yrs

Guangming Yu

TITLE
Deputy GM & Executive Director
AGE
61
TENURE
15.4 yrs

Zhicheng Zhang

TITLE
VP of Luxury Brand Automobile Sales Business & Executive Director
COMPENSATION
CN¥20M
AGE
46
TENURE
10.9 yrs

Wei Si

TITLE
Executive Director
COMPENSATION
CN¥724K
AGE
56

Shezhen Yan

TITLE
Head of Investor Relationship

Zhenchao Yao

TITLE
Chief Legal Officer & Joint Company Secretary
AGE
38

Celia Mak

TITLE
Joint Company Secretary
AGE
45
TENURE
8.9 yrs
Board of Directors Tenure

Average tenure and age of the Zhongsheng Group Holdings board of directors in years:

8.2
Average Tenure
56
Average Age
  • The tenure for the Zhongsheng Group Holdings board of directors is about average.
Board of Directors

Yi Huang

TITLE
Co-Founder & Chairman
COMPENSATION
CN¥11M
AGE
56
TENURE
21.4 yrs

Guoqiang Li

TITLE
Co-Founder
COMPENSATION
CN¥14M
AGE
55
TENURE
11 yrs

Qingshan Du

TITLE
Deputy GM & Executive Director
COMPENSATION
CN¥20M
AGE
56
TENURE
11 yrs

Guangming Yu

TITLE
Deputy GM & Executive Director
AGE
61
TENURE
11 yrs

Zhicheng Zhang

TITLE
VP of Luxury Brand Automobile Sales Business & Executive Director
COMPENSATION
CN¥20M
AGE
46
TENURE
5.3 yrs

Wei Si

TITLE
Executive Director
COMPENSATION
CN¥724K
AGE
56
TENURE
6.8 yrs

Jinjun Shen

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥214K
AGE
61
TENURE
9.6 yrs

Yong Lin

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥214K
AGE
50
TENURE
5.3 yrs

Wei Ying

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥214K
AGE
53
TENURE
2.5 yrs

Yiu Kai Pang

TITLE
Non-Executive Director
AGE
59
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Zhongsheng Group Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Zhongsheng Group Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ZSHG.Y News

Simply Wall St News

ZSHG.Y Company Info

Description

Zhongsheng Group Holdings Limited, an investment holding company, engages in the sale and service of motor vehicles. The company operates 4S dealerships for various automobile brands consisting of luxury automobile brands, including Mercedes-Benz, Lexus, Audi, Jaguar, Land Rover, Porsche, Chrysler, Volvo, and Imported Volkswagen; and mid-to-high end automobile brands, such as Toyota and Nissan. It also provides spare parts, automobile accessories, repair and maintenance services, detailing services, and other automobile-related products and services. As of 31 December 2018, the company had 318 automobile dealerships that include 175 luxury brand dealerships and 143 mid-to-high-end brand dealerships covering 24 provinces and regions, and approximately 90 cities in China. Zhongsheng Group Holdings Limited was founded in 1998 and is headquartered in Dalian, the People's Republic of China.

Details
Name: Zhongsheng Group Holdings Limited
ZSHG.Y
Exchange: OTCPK
Founded: 1998
HK$5,613,359,029
2,271,697,955
Website: http://www.zs-group.com.cn
Address: Zhongsheng Group Holdings Limited
No. 20 Hequ Street,
Shahekou District,
Dalian,
Liaoning Province, China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 881 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 26. Mar 2010
DB 5Z0 Ordinary Shares Deutsche Boerse AG DE EUR 26. Mar 2010
SHSC 881 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 26. Mar 2010
SZSC 881 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 26. Mar 2010
OTCPK ZSHG.Y ADR Pink Sheets LLC US USD 09. Jul 2010
SEHK 4498 0% CNV SNR 23/05/2023 HKD2000000 'REGS' The Stock Exchange of Hong Kong Ltd. HK HKD 11. May 2018
SEHK 5294 0% CNV SNR 25/10/2018 HKD2000000 'REGS' The Stock Exchange of Hong Kong Ltd. HK HKD 16. Oct 2017
Number of employees
Current staff
Staff numbers
26,969
Zhongsheng Group Holdings employees.
Industry
Automotive Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 00:36
End of day share price update: 2019/04/17 00:00
Last estimates confirmation: 2019/06/13
Last earnings filing: 2019/04/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.