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ZSHG

Zhongsheng Group Holdings OTCPK:ZSHG.Y Stock Report

Last Price

US$50.51

Market Cap

US$12.8b

7D

-2.9%

1Y

-44.5%

Updated

12 Aug, 2022

Data

Company Financials +
ZSHG.Y fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance6/6
Financial Health6/6
Dividends4/6

ZSHG.Y Stock Overview

Zhongsheng Group Holdings Limited, an investment holding company, engages in the sale and service of motor vehicles.

Zhongsheng Group Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Zhongsheng Group Holdings
Historical stock prices
Current Share PriceHK$50.51
52 Week HighHK$93.63
52 Week LowHK$49.49
Beta0.67
1 Month Change-24.77%
3 Month Change-22.00%
1 Year Change-44.49%
3 Year Changen/a
5 Year Change191.97%
Change since IPO184.41%

Recent News & Updates

Shareholder Returns

ZSHG.YUS Specialty RetailUS Market
7D-2.9%5.6%3.2%
1Y-44.5%-28.4%-10.1%

Return vs Industry: ZSHG.Y underperformed the US Specialty Retail industry which returned -30.3% over the past year.

Return vs Market: ZSHG.Y underperformed the US Market which returned -11.7% over the past year.

Price Volatility

Is ZSHG.Y's price volatile compared to industry and market?
ZSHG.Y volatility
ZSHG.Y Average Weekly Movement7.0%
Specialty Retail Industry Average Movement9.0%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

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

Volatility Over Time: ZSHG.Y's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199839,668Guoqiang Lihttps://www.zs-group.com.cn

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, and Volvo; 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.

Zhongsheng Group Holdings Fundamentals Summary

How do Zhongsheng Group Holdings's earnings and revenue compare to its market cap?
ZSHG.Y fundamental statistics
Market CapCN¥86.58b
Earnings (TTM)CN¥8.33b
Revenue (TTM)CN¥175.10b

10.4x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZSHG.Y income statement (TTM)
RevenueCN¥175.10b
Cost of RevenueCN¥156.63b
Gross ProfitCN¥18.47b
Other ExpensesCN¥10.14b
EarningsCN¥8.33b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.45
Gross Margin10.55%
Net Profit Margin4.76%
Debt/Equity Ratio59.2%

How did ZSHG.Y perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

19%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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 ZSHG.Y?

Other financial metrics that can be useful for relative valuation.

ZSHG.Y 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/Revenue0.6x
Enterprise Value/EBITDA7.5x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does ZSHG.Y's PE Ratio compare to its peers?

ZSHG.Y PE Ratio vs Peers
The above table shows the PE ratio for ZSHG.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.2x
KMX CarMax
16.7x13.6%US$16.2b
AAP Advance Auto Parts
21.4x8.7%US$12.2b
PAG Penske Automotive Group
6.2x-12.9%US$8.8b
MUSA Murphy USA
12.4x-8.6%US$6.8b
ZSHG.Y Zhongsheng Group Holdings
10.4x18.0%US$100.6b

Price-To-Earnings vs Peers: ZSHG.Y is good value based on its Price-To-Earnings Ratio (10.4x) compared to the peer average (14.2x).


Price to Earnings Ratio vs Industry

How does ZSHG.Y's PE Ratio compare vs other companies in the US Specialty Retail Industry?

Price-To-Earnings vs Industry: ZSHG.Y is expensive based on its Price-To-Earnings Ratio (10.4x) compared to the US Specialty Retail industry average (6.7x)


Price to Earnings Ratio vs Fair Ratio

What is ZSHG.Y'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.

ZSHG.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.4x
Fair PE Ratio20.1x

Price-To-Earnings vs Fair Ratio: ZSHG.Y is good value based on its Price-To-Earnings Ratio (10.4x) compared to the estimated Fair Price-To-Earnings Ratio (20.1x).


Share Price vs Fair Value

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

Below Fair Value: ZSHG.Y ($50.51) is trading below our estimate of fair value ($59.98)

Significantly Below Fair Value: ZSHG.Y is trading below fair value, but not by a significant amount.


Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Zhongsheng Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 20 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


18.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZSHG.Y's forecast earnings growth (18% per year) is above the savings rate (1.9%).

Earnings vs Market: ZSHG.Y's earnings (18% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: ZSHG.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: ZSHG.Y's revenue (14.7% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: ZSHG.Y's revenue (14.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZSHG.Y's Return on Equity is forecast to be high in 3 years time (21.8%)


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Past Performance

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

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


23.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ZSHG.Y has high quality earnings.

Growing Profit Margin: ZSHG.Y's current net profit margins (4.8%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: ZSHG.Y's earnings have grown significantly by 23.4% per year over the past 5 years.

Accelerating Growth: ZSHG.Y's earnings growth over the past year (50.3%) exceeds its 5-year average (23.4% per year).

Earnings vs Industry: ZSHG.Y earnings growth over the past year (50.3%) exceeded the Specialty Retail industry 30.2%.


Return on Equity

High ROE: ZSHG.Y's Return on Equity (20.7%) is considered high.


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Financial Health

How is Zhongsheng Group Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ZSHG.Y's short term assets (CN¥40.3B) exceed its short term liabilities (CN¥28.4B).

Long Term Liabilities: ZSHG.Y's short term assets (CN¥40.3B) exceed its long term liabilities (CN¥16.4B).


Debt to Equity History and Analysis

Debt Level: ZSHG.Y's net debt to equity ratio (31.3%) is considered satisfactory.

Reducing Debt: ZSHG.Y's debt to equity ratio has reduced from 137.4% to 59.2% over the past 5 years.

Debt Coverage: ZSHG.Y's debt is well covered by operating cash flow (45.1%).

Interest Coverage: ZSHG.Y's interest payments on its debt are well covered by EBIT (13.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.90%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ZSHG.Y's dividend (1.9%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: ZSHG.Y's dividend (1.9%) is low compared to the top 25% of dividend payers in the US market (4%).


Stability and Growth of Payments

Stable Dividend: ZSHG.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: ZSHG.Y's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.4%), ZSHG.Y's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (28.3%), ZSHG.Y's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure


CEO

Guoqiang Li (58 yo)

24.58yrs

Tenure

CN¥55,113,000

Compensation

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. H...


CEO Compensation Analysis

Compensation vs Market: Guoqiang's total compensation ($USD8.17M) is below average for companies of similar size in the US market ($USD12.88M).

Compensation vs Earnings: Guoqiang's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ZSHG.Y's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: ZSHG.Y's board of directors are considered experienced (4.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Zhongsheng Group Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Zhongsheng Group Holdings Limited
  • Ticker: ZSHG.Y
  • Exchange: OTCPK
  • Founded: 1998
  • Industry: Automotive Retail
  • Sector: Retail
  • Implied Market Cap: HK$100.645b
  • Listing Market Cap: HK$12.840b
  • Shares outstanding: 2.41b
  • Website: https://www.zs-group.com.cn

Number of Employees


Location

  • Zhongsheng Group Holdings Limited
  • No. 20 Hequ Street
  • Shahekou District
  • Dalian
  • Liaoning Province
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/12 00:00
Earnings2021/12/31
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.