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Wuling Motors Holdings Limited (HK:0305)
:0305
Hong Kong Market
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Wuling Motors Holdings Limited (0305) AI Stock Analysis

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HK:0305

Wuling Motors Holdings Limited

(0305)

Rating:55Neutral
Price Target:
HK$0.50
▲(2.04% Upside)
Wuling Motors Holdings Limited is currently facing significant financial challenges, with declining revenues and unstable profit margins being the most impactful factors. While the technical analysis shows strong momentum, the overbought indicators suggest caution. Valuation metrics imply the stock might be overvalued, further urging a cautious approach.

Wuling Motors Holdings Limited (0305) vs. iShares MSCI Hong Kong ETF (EWH)

Wuling Motors Holdings Limited Business Overview & Revenue Model

Company DescriptionWuling Motors Holdings Limited (0305) is a prominent automotive manufacturer based in China, primarily engaged in the production and sale of vehicles, automotive components, and engines. The company operates in three main segments: Vehicles and Related Operations, Automotive Components and Other Industrial Services, and the Engine and Related Operations. Wuling Motors is widely recognized as a key player in the production of commercial and passenger vehicles, particularly within the Chinese market.
How the Company Makes MoneyWuling Motors Holdings Limited generates revenue through the sale of its diverse range of automotive products including commercial vehicles, passenger cars, automotive components, and engines. The company's Vehicles and Related Operations segment is a major contributor to its income, driven by the high demand for both commercial and passenger vehicles in China. Additionally, the Automotive Components and Other Industrial Services segment contributes to the company's earnings through the supply of essential parts and components to other manufacturers. Wuling Motors also benefits from strategic partnerships, particularly with its joint ventures such as SAIC-GM-Wuling Automobile, which bolster its market presence and expand its distribution network. These collaborations enhance product offerings and enable the company to leverage shared technologies and resources, further solidifying its revenue streams.

Wuling Motors Holdings Limited Financial Statement Overview

Summary
Wuling Motors Holdings Limited faces significant financial challenges. Declining revenues and unstable profit margins indicate operational weaknesses. High debt levels raise financial risk, though equity stability provides some cushion. Persistent negative cash flows highlight ongoing liquidity issues. Strategic improvements are needed for sustainable growth and stability.
Income Statement
42
Neutral
Wuling Motors Holdings Limited has experienced declining revenue over the past few years, with a significant drop from 2020 to 2024. The Gross Profit Margin has shown resilience, averaging around 10-12%, but Net Profit Margins are unstable, indicating weak cost control or pricing power. EBIT and EBITDA margins suggest operational challenges, as EBIT is particularly low or negative in some years.
Balance Sheet
55
Neutral
The company exhibits a high level of leverage, with a Debt-to-Equity ratio exceeding industry norms, indicating potential financial risk. However, Stockholders' Equity has been relatively stable, and the Equity Ratio shows a decent proportion of equity in the asset base. Return on Equity is low, reflecting poor profitability relative to shareholder investment.
Cash Flow
38
Negative
Operating Cash Flow has been negative for several years, highlighting cash management issues. Free Cash Flow is also negative, affecting the company's ability to self-finance operations and growth. The ratio of cash flow to net income varies, indicating inconsistent cash generation from operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.95B10.48B12.60B14.41B15.38B
Gross Profit860.10M1.04B908.49M1.09B1.21B
EBITDA404.68M423.40M347.24M220.44M337.60M
Net Income50.62M23.48M22.61M-24.15M-33.40M
Balance Sheet
Total Assets13.77B15.05B15.55B15.02B15.40B
Cash, Cash Equivalents and Short-Term Investments3.16B2.62B1.97B1.84B946.58M
Total Debt5.48B2.37B2.34B1.57B1.50B
Total Liabilities10.73B12.10B12.67B12.19B12.91B
Stockholders Equity1.97B1.93B1.91B1.88B1.47B
Cash Flow
Free Cash Flow-6.10B-6.25B-9.08B-7.16B-8.37B
Operating Cash Flow-5.89B-5.98B-8.76B-6.78B-8.00B
Investing Cash Flow37.00M-91.29M-556.84M-187.50M-219.56M
Financing Cash Flow6.40B6.72B9.46B7.85B8.33B

Wuling Motors Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.49
Price Trends
50DMA
0.46
Positive
100DMA
0.46
Positive
200DMA
0.45
Positive
Market Momentum
MACD
<0.01
Positive
RSI
60.04
Neutral
STOCH
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0305, the sentiment is Positive. The current price of 0.49 is below the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.46, and above the 200-day MA of 0.45, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0305.

Wuling Motors Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
HK$276.96M6.692.17%4.60%12.21%-9.01%
60
Neutral
HK$1.59B7.028.65%4.38%13.37%-35.53%
57
Neutral
HK$24.67B3.83-3.22%5.89%0.28%-59.63%
55
Neutral
HK$1.72B29.522.60%1.04%-25.59%116.88%
54
Neutral
HK$513.07M11.283.02%1.07%-2.00%7.08%
48
Neutral
HK$230.00M104.550.80%-2.97%-42.11%
38
Underperform
HK$118.98M-137.28%-20.08%27.74%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0305
Wuling Motors Holdings Limited
0.52
0.20
62.50%
HK:6830
Huazhong In-Vehicle Holdings Company Limited
0.29
-2.00
-87.34%
HK:6162
China Tianrui Automotive Interiors Co., Ltd.
0.12
0.04
50.00%
HK:1991
Ta Yang Group Holdings Limited
0.76
-0.54
-41.54%
HK:1760
Intron Technology Holdings Ltd.
1.46
0.07
5.04%
HK:1148
Xinchen China Power Holdings Ltd.
0.22
0.05
33.54%

Wuling Motors Holdings Limited Corporate Events

Wuling Motors Reports Significant Profit Growth in First Half of 2025
Aug 5, 2025

Wuling Motors Holdings Limited has announced a substantial increase in net profit for the first half of 2025, with a reported net profit of approximately RMB84 million, marking a 298% rise compared to the same period in 2024. This improvement is attributed to enhanced gross profit margins and reduced administrative expenses due to effective cost control measures, alongside a decrease in the share of losses from associates.

Wuling Motors Successfully Passes All Resolutions at AGM
Jun 12, 2025

Wuling Motors Holdings Limited announced that all proposed ordinary resolutions were successfully passed at their Annual General Meeting held on June 12, 2025. The resolutions included the adoption of financial statements, the declaration of a final dividend, the re-election of directors, and the granting of mandates for share repurchase and issuance. This outcome reflects strong shareholder support and positions the company to continue its strategic initiatives, potentially impacting its operational efficiency and shareholder value positively.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2025