Zhongsheng Group Holdings Ltd. (0881) AI Stock Analysis

• Market Cap: HK$31.09B
• Dividend Yield: 5.21%
• Average Volume (3M): 9.15M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.51
• Revenue Growth: -9.51%
• EPS Growth: -25.80%
• Country: HK
• Employees: 26,357
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.46
• Shares Outstanding: 2,385,668,500
• 10 Day Avg. Volume: 8,374,825
• 30 Day Avg. Volume: 9,153,716
• PEG Ratio: -0.28
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 23.28
• 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: HK$19.89
• Price Target Upside: 52.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 67 Neutral
• Price Target: HK$15.50 ▲(19.14% Upside)

Zhongsheng Group Holdings Ltd. has a moderate overall stock score, driven primarily by its stable financial performance and reasonable valuation. The technical analysis indicates some bearish momentum, which could pose short-term challenges. The absence of earnings call data and corporate events limits additional insights.

Zhongsheng Group Holdings Ltd. Business Overview & Revenue Model

Company 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, 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. As of December 31, 2021, the company had 412 automobile dealerships that include 254 luxury brand dealerships and 158 mid-to-high-end brand dealerships covering 25 provinces, municipalities, and autonomous regions, and approximately 110 cities in the People's Republic of China. Zhongsheng Group Holdings Limited was founded in 1998 and is headquartered in Dalian, the People's Republic of China.

How the Company Makes Money

Zhongsheng Group Holdings Ltd. generates revenue primarily through the sale of new automobiles and after-sales services. New car sales represent a significant portion of the company's income, with a focus on luxury and premium brands. The after-sales services, which include maintenance, repair, and the sale of parts, provide a recurring revenue stream and enhance customer loyalty. Additionally, the company benefits from strategic partnerships with top automotive manufacturers, which enable it to offer a wide variety of cars and attract a broad customer base. These partnerships often come with incentives and exclusive distribution rights, further boosting the company's profitability.

Zhongsheng Group Holdings Ltd. Financial Statement Overview

Summary

Zhongsheng Group Holdings Ltd. demonstrates moderate financial health. The company faces challenges with declining profit margins and inconsistent revenue growth. While the balance sheet is stable, rising debt levels could pose future risks. Cash flow remains steady but shows potential for enhancement.

Income Statement

Zhongsheng Group Holdings Ltd. exhibits moderate income statement performance. The gross profit margin and net profit margin have shown variability, with a noticeable decline in recent years. Revenue growth rate has been inconsistent, showcasing a decrease from the previous year. Despite this, the company maintains a reasonable EBIT margin, although the EBITDA margin is inflated due to potential data errors.

Balance Sheet

The balance sheet of Zhongsheng Group Holdings Ltd. reflects a stable equity base with a moderate equity ratio. The debt-to-equity ratio indicates a manageable level of leverage, but there's an upward trend in debt levels. The return on equity shows a declining trend, suggesting challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis shows Zhongsheng Group Holdings Ltd. has a steady operating cash flow, though free cash flow growth has been uneven. The operating cash flow to net income ratio is positive, suggesting effective cash generation relative to reported profits, but there is room for improvement in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.02B	168.12B	179.29B	179.86B	175.10B	148.35B
Gross Profit	9.95B	10.67B	13.76B	16.03B	18.47B	13.48B
EBITDA	2.06T	2.06T	10.56B	13.02B	15.00B	10.88B
Net Income	2.64B	3.21B	5.02B	6.69B	8.33B	5.54B
Balance Sheet
Total Assets	107.93B	110.17B	103.27B	91.66B	85.47B	68.50B
Cash, Cash Equivalents and Short-Term Investments	20.14B	18.87B	15.88B	11.93B	11.34B	8.54B
Total Debt	33.85B	40.82B	36.76B	30.64B	28.73B	28.28B
Total Liabilities	60.25B	63.25B	57.22B	47.54B	44.77B	41.62B
Stockholders Equity	47.68B	46.83B	45.80B	43.81B	40.24B	26.46B
Cash Flow
Free Cash Flow	6.10B	1.34B	3.53B	4.93B	5.79B	6.04B
Operating Cash Flow	6.46B	3.44B	6.43B	8.78B	10.87B	9.32B
Investing Cash Flow	111.80M	619.53M	-497.01M	-3.60B	-9.42B	-3.23B
Financing Cash Flow	-10.89B	-1.00B	-2.00B	-4.53B	1.30B	-3.96B

Zhongsheng Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.01
• 50DMA: Negative
• 100DMA: Negative
• 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:0881, the sentiment is Negative. The current price of 13.01 is below the 20-day moving average (MA) of 14.04, below the 50-day MA of 14.79, and above the 200-day MA of 12.82, indicating a neutral trend. The MACD of -0.50 indicates Positive momentum. The RSI at 32.49 is Neutral, neither overbought nor oversold. The STOCH value of 8.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0881.

Zhongsheng Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0881	67 Neutral	HK$31.09B	10.80	5.65%	5.21%	-9.51%	-25.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1728	52 Neutral	HK$1.43B	―	―	―	-9.07%	-26.94%
1771	52 Neutral	HK$180.00M	―	-8.81%	―	-24.42%	-115.68%
3669	46 Neutral	$3.28B	18.51	-26.57%	8.69%	-13.69%	-1296.59%
1268	45 Neutral	$2.26B	40.67	-87.36%	2.89%	-14.04%	-4222.02%
3836	45 Neutral	HK$1.90B	―	-4.42%	2.85%	11.33%	56.94%

Zhongsheng Group Holdings Ltd. Corporate Events

Zhongsheng Group Reports Decline in H1 2025 Financial Results

Zhongsheng Group Holdings Ltd. announced a decrease in its financial performance for the first half of 2025, with total revenue dropping by 6.2% compared to the same period in 2024. Despite a slight increase in after-sales services revenue, the company experienced a significant decline in gross profit and profit attributable to owners, primarily due to a 7.4% decrease in motor vehicle sales. The company also reported a 1.7% decrease in new car sales volume, although pre-owned automobile trade volume increased by 9.6%.

The most recent analyst rating on (HK:0881) stock is a Buy with a HK$17.50 price target. To see the full list of analyst forecasts on Zhongsheng Group Holdings Ltd. stock, see the HK:0881 Stock Forecast page.

Zhongsheng Group to Review Interim Financial Results and Dividend

Zhongsheng Group Holdings Ltd. has announced that its board of directors will convene on August 28, 2025, to review and approve the interim financial results for the first half of the year ending June 30, 2025. The meeting will also consider the declaration of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

The most recent analyst rating on (HK:0881) stock is a Sell with a HK$11.00 price target. To see the full list of analyst forecasts on Zhongsheng Group Holdings Ltd. stock, see the HK:0881 Stock Forecast page.