China Motor Bus Co. Ltd. (0026) AI Stock Analysis

• Market Cap: HK$2.39B
• Dividend Yield: 0.38%
• Average Volume (3M): 5.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -1.10%
• EPS Growth: 27.14%
• Country: HK
• Employees: 15
• Sector: Industrials
• Sector Strength: 83
• Industry: Real Estate - Development
• EPS (TTM): -2.99
• Shares Outstanding: 45,218,857
• 10 Day Avg. Volume: 4,299
• 30 Day Avg. Volume: 5,556
• PEG Ratio: 0.08
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 116.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ―

China Motor Bus Co. Ltd.'s stock score of 60 reflects a balance between financial stability and challenges. The strong balance sheet with no debt is a positive, but significant losses in the income statement weigh heavily. Positive technical indicators suggest bullish momentum, but valuation concerns persist due to negative earnings. The high dividend yield provides some relief, appealing to dividend-seeking investors.

China Motor Bus Co. Ltd. Business Overview & Revenue Model

Company Description

China Motor Bus Co. Ltd. (0026) is a Hong Kong-based company primarily engaged in property investment and development. Originally established as a public bus service provider, the company has since shifted its focus towards real estate, investing in high-quality commercial and residential properties across Hong Kong. Its portfolio includes a diverse range of assets, including office buildings, retail spaces, and residential complexes, catering to a variety of tenants and clients.

How the Company Makes Money

China Motor Bus Co. Ltd. generates revenue primarily through its real estate investment and development activities. Income is derived from leasing office and retail spaces to commercial tenants, as well as from managing residential properties for rental income. The company may also engage in the development and sale of residential units, providing another stream of revenue. Additionally, the appreciation of property values contributes to the company's financial performance as it can lead to increased rental rates and capital gains. Strategic partnerships with construction firms and financial institutions may play a role in facilitating large-scale development projects, enhancing the company's ability to generate returns. The company’s historical transition from transportation to real estate marks a strategic pivot to capitalize on Hong Kong's property market dynamics.

China Motor Bus Co. Ltd. Financial Statement Overview

Summary

China Motor Bus Co. Ltd. presents a mixed financial picture. The balance sheet is strong with no debt and high equity, contributing to financial stability. However, the income statement reveals significant losses, which affects overall profitability. The cash flow statement indicates positive operating cash flow but highlights issues in translating revenue to profit. Overall, stability in the balance sheet offsets some risks, but improvement in revenue and net income is crucial for future financial health.

Income Statement

The company has experienced declining revenue over the past few years, with a significant drop in revenue growth rate from the previous periods. The net profit margin is negative, indicating losses in both current and prior years, which raises concerns about profitability. The EBIT and EBITDA margins, while positive, are not sufficient to offset the net losses.

Balance Sheet

The company maintains a strong equity position with no debt, resulting in a favorable debt-to-equity ratio of zero. The equity ratio is high, signifying that a large portion of the company's assets are financed by shareholders' equity, indicating financial stability. However, the negative net income affects the return on equity, which is a point of concern.

Cash Flow

Operating cash flow remains positive, and the cash flow from investing activities shows significant inflows, contributing to overall cash growth. However, the free cash flow has declined compared to previous years, and the operating cash flow to net income ratio indicates a disconnect between cash generation and profitability.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
182.24M	69.55M	112.55M	79.14M	91.94M	148.10M
	Gross Profit
176.87M	62.24M	102.23M	69.37M	82.53M	141.91M
	EBIT
82.15M	94.84M	75.07M	43.02M	56.34M	111.60M
	EBITDA
91.80M	34.04M	78.46M	46.43M	59.75M	113.35M
	Net Income Common Stockholders
-135.18M	-262.22M	-155.24M	72.35M	-17.92M	111.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.73B	1.39B	1.47B	1.49B	2.53B	2.80B
	Total Assets
7.32B	7.30B	7.70B	7.96B	8.18B	8.48B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-1.73B	-1.39B	-765.16M	-773.04M	-1.12B	-1.31B
	Total Liabilities
264.53M	99.13M	96.64M	94.93M	96.05M	84.90M
	Stockholders Equity
7.05B	7.20B	7.61B	7.87B	8.08B	8.39B
Cash Flow		Free Cash Flow
90.33M	28.98M	75.16M	40.88M	89.65M	107.32M
	Operating Cash Flow
90.33M	29.13M	75.28M	41.01M	89.96M	107.55M
	Investing Cash Flow
454.24M	565.38M	37.70M	-189.04M	78.96M	1.57B
	Financing Cash Flow
-148.18M	-144.61M	-141.10M	-143.51M	-423.69M	-1.78B

China Motor Bus Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 52.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0026, the sentiment is Neutral. The current price of 52.6 is below the 20-day moving average (MA) of 53.55, above the 50-day MA of 52.52, and above the 200-day MA of 48.45, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 5.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0026.

China Motor Bus Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0027	76 Outperform	$144.31B	16.48	11.92%	3.03%	17.34%	28.21%
0011	76 Outperform	$215.71B	12.29	11.23%	4.54%	-2.77%	4.04%
0062	73 Outperform	€4.45B	23.45	1.11%	5.71%	4.19%	-54.47%
0086	67 Neutral	€5.97B	15.81	1.76%	9.33%	20.63%	―
Sector *	66 Neutral	$4.46B	12.11	5.38%	5.02%	4.17%	-11.82%
0006	62 Neutral	$108.79B	17.78	6.95%	7.99%	-28.87%	1.93%
0026	60 Neutral	HK$2.39B	―	-1.88%	0.38%	-1.10%	27.14%

China Motor Bus Co. Ltd. Corporate Events

China Motor Bus Reports Decreased Operating Profit Amidst Healthy Financial Position

China Motor Bus Company, Limited reported an unaudited consolidated operating profit of HK$35.17 million for the six months ending December 31, 2024, a decrease from HK$47.86 million in the previous year, mainly due to lower interest income and increased exchange losses. Despite a consolidated loss after taxation of HK$34.21 million, improved from the HK$161.24 million loss in the previous year, the company’s financial position remains healthy, supported by a profit on the disposal of an investment property and non-cash net valuation losses on investment properties.

China Motor Bus Announces Interim Dividend for 2024/25

China Motor Bus Company, Limited has announced an interim ordinary cash dividend of HKD 0.1 per share for the financial year ending June 30, 2025. The ex-dividend date is set for May 30, 2025, with the payment scheduled for June 24, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may impact investor sentiment positively.

China Motor Bus Announces Special Dividend for 2024/25

China Motor Bus Company, Limited has announced a special dividend of HKD 4.9 per share for the financial year ending June 30, 2025, with the payment date set for June 24, 2025. This announcement reflects the company’s strong financial position and commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors.