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

• Market Cap: HK$2.66B
• Dividend Yield: 12.1%
• Average Volume (3M): 4.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: -17.67%
• EPS Growth: 29.58%
• Country: US
• Employees: 15
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -3.32
• Shares Outstanding: 45,218,857
• 10 Day Avg. Volume: 2,900
• 30 Day Avg. Volume: 4,010
• PEG Ratio: -0.14
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 35.22
• P/FCF Ratio: 84.53
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• 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.

Positive Factors

Strong Balance Sheet

A debt-free balance sheet enhances financial stability and provides flexibility for strategic investments or weathering economic downturns.

Cash Flow Generation

Positive operating cash flow indicates effective cash management, supporting ongoing operations and potential reinvestment in growth opportunities.

Dividend Commitment

The special dividend reflects a strong financial position and commitment to shareholder returns, enhancing investor confidence and long-term appeal.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in market competitiveness or demand, potentially impacting long-term growth and profitability.

Negative Profit Margins

Negative profit margins suggest inefficiencies or cost pressures, which could hinder the company's ability to sustain operations without strategic adjustments.

Decreased Operating Profit

A decrease in operating profit highlights potential operational challenges, affecting the company's ability to generate consistent earnings over time.

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

Company Description

China Motor Bus Company, Limited, together with its subsidiaries, engages in the property development and investment activities in Hong Kong and the United Kingdom. The company is involved in the development, construction, sale, marketing, and leasing of the retail, office, and apartment properties. The company was incorporated in 1933 and is based in North Point, Hong Kong.

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	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
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
EBITDA	91.80M	34.04M	78.46M	46.43M	59.75M	113.35M
Net Income	-135.18M	-262.22M	-155.24M	72.35M	-17.92M	111.50M
Balance Sheet
Total Assets	7.32B	7.30B	7.70B	7.96B	8.18B	8.48B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.39B	1.47B	1.49B	2.53B	2.80B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
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	105.31M	28.98M	75.16M	40.88M	89.65M	107.32M
Operating Cash Flow	105.47M	29.13M	75.28M	41.01M	89.96M	107.55M
Investing Cash Flow	492.05M	565.38M	37.70M	-189.04M	103.15M	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: Positive
• Last Price: 58.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0026, the sentiment is Positive. The current price of 58.7 is below the 20-day moving average (MA) of 59.10, above the 50-day MA of 57.97, and above the 200-day MA of 55.59, indicating a bullish trend. The MACD of 0.35 indicates Positive momentum. The RSI at 54.89 is Neutral, neither overbought nor oversold. The STOCH value of 36.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0026	60 Neutral	HK$2.66B	-14.39	-2.63%	12.10%	-17.67%	29.58%
0051	54 Neutral	HK$3.25B	-12.90	-1.83%	1.16%	-9.42%	-153.41%
0216	53 Neutral	HK$330.82M	-0.46	-9.81%	―	48.60%	-441.98%
0369	51 Neutral	HK$2.74B	-1.11	-11.42%	4.12%	-4.95%	-29.73%
0194	49 Neutral	HK$1.68B	-4.21	-3.74%	6.35%	54.72%	59.72%
0088	45 Neutral	HK$2.33B	44.77	0.82%	6.86%	-31.03%	-31.43%

China Motor Bus Co. Ltd. Corporate Events

China Motor Bus Co. Ltd. Successfully Passes All Resolutions at Yearly Meeting

China Motor Bus Co. Ltd. recently held its Ordinary Yearly Meeting on December 5, 2025, where all proposed resolutions were successfully passed by shareholder poll voting. Key resolutions included the approval of financial statements, declaration of dividends, re-election of directors, re-appointment of KPMG as auditors, and authorization for directors to repurchase shares. Additionally, a special resolution to amend the Articles of Association was also approved. The meeting saw full attendance from the company’s board of directors, and Computershare Hong Kong Investor Services Limited acted as the scrutineer for the vote-taking process.

China Motor Bus Co. Ltd. Announces 87th Ordinary Yearly Meeting

China Motor Bus Co. Ltd. has announced its Eighty-seventh Ordinary Yearly Meeting, scheduled for December 5, 2025, where shareholders will consider the company’s financial statements, declare dividends, and re-elect directors. The meeting will also address the reappointment of KPMG as auditors and discuss resolutions on share repurchase and amendments to the Articles of Association, potentially impacting the company’s governance and shareholder value.