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Zhongsheng Group Holdings Ltd. (HK:0881)
:0881
Hong Kong Market

Zhongsheng Group Holdings Ltd. (0881) AI Stock Analysis

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HK

Zhongsheng Group Holdings Ltd.

(0881)

Rating:65Neutral
Price Target:
HK$13.00
▲( 7.26% Upside)
Zhongsheng Group Holdings Ltd.'s overall score is driven by its moderate financial performance and attractive valuation. Technical indicators show neutral trends, but the stock's valuation is a key strength, with a low P/E ratio and high dividend yield making it appealing despite financial performance challenges.

Zhongsheng Group Holdings Ltd. (0881) vs. iShares MSCI Hong Kong ETF (EWH)

Zhongsheng Group Holdings Ltd. Business Overview & Revenue Model

Company DescriptionZhongsheng Group Holdings Ltd. is a leading automotive dealership group in China, primarily engaged in the sale and service of motor vehicles. The company operates a network of dealerships across China, representing a wide range of international automotive brands. Zhongsheng Group offers comprehensive services including new car sales, after-sales services, spare parts, and accessories, as well as financing and insurance services, catering to both individual and corporate clients.
How the Company Makes MoneyZhongsheng Group Holdings Ltd. generates revenue primarily through the sale of new and used vehicles. A significant portion of its earnings comes from after-sales services, which include vehicle maintenance and repairs, spare parts sales, and body shop services. Additionally, the company earns revenue by offering financing and insurance products to its customers, often through partnerships with financial institutions. Zhongsheng's extensive brand portfolio and strategic partnerships with major automotive manufacturers enhance its ability to attract a diverse customer base, contributing to its financial performance.

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
65
Positive
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
70
Positive
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
68
Positive
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
168.12B179.29B179.86B175.10B148.35B
Gross Profit
10.67B13.76B16.03B18.47B13.48B
EBIT
5.67B8.34B10.17B12.62B8.94B
EBITDA
2.06T10.56B13.02B15.00B10.88B
Net Income Common Stockholders
3.21B5.02B6.69B8.33B5.54B
Balance SheetCash, Cash Equivalents and Short-Term Investments
18.87B15.88B11.93B11.34B8.54B
Total Assets
110.17B103.27B91.66B85.47B68.50B
Total Debt
40.82B36.76B30.64B28.73B28.28B
Net Debt
22.07B21.03B18.81B17.55B19.89B
Total Liabilities
63.25B57.22B47.54B44.77B41.62B
Stockholders Equity
46.83B45.80B43.81B40.24B26.46B
Cash FlowFree Cash Flow
1.15B3.53B4.93B5.79B6.04B
Operating Cash Flow
3.44B6.43B8.78B10.87B9.32B
Investing Cash Flow
619.53M-497.01M-3.60B-9.42B-3.23B
Financing Cash Flow
-1.00B-2.00B-4.53B1.30B-3.96B

Zhongsheng Group Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price12.12
Price Trends
50DMA
12.68
Negative
100DMA
12.83
Negative
200DMA
12.71
Negative
Market Momentum
MACD
0.02
Negative
RSI
48.52
Neutral
STOCH
54.11
Neutral
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 12.12 is above the 20-day moving average (MA) of 12.07, below the 50-day MA of 12.68, and below the 200-day MA of 12.71, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 48.52 is Neutral, neither overbought nor oversold. The STOCH value of 54.11 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$1.38T27.9823.91%0.73%33.89%45.52%
70
Neutral
$188.98B8.8914.58%2.62%5.32%10.61%
65
Neutral
HK$30.11B8.616.95%6.31%-7.86%-36.99%
62
Neutral
$6.84B11.233.09%3.95%2.66%-25.23%
61
Neutral
$16.65B4.778.00%-3.96%-60.66%
54
Neutral
$72.23B32.76-0.98%4.94%-18.42%-82.40%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0881
Zhongsheng Group Holdings Ltd.
11.68
-1.85
-13.67%
HK:1211
BYD Co
418.20
214.69
105.49%
HK:2238
Guangzhou Automobile Group Co
2.77
-0.37
-11.81%
HK:1114
Brilliance China Automotive Holdings
3.18
0.77
32.11%
HK:2333
Great Wall Motor Co
11.98
-1.46
-10.86%

Zhongsheng Group Holdings Ltd. Corporate Events

Zhongsheng Group Holdings Ltd. Announces 2025 Annual General Meeting Agenda
Apr 29, 2025

Zhongsheng Group Holdings Ltd. has announced its Annual General Meeting scheduled for June 20, 2025, in Hong Kong. Key agenda items include the approval of financial statements, declaration of a final dividend, re-election of directors, re-appointment of auditors, and granting of mandates to buy back shares and issue additional shares. These resolutions are aimed at strengthening the company’s governance and financial flexibility, potentially impacting shareholder value and market positioning.

Zhongsheng Group Announces Board and Committee Changes
Apr 8, 2025

Zhongsheng Group Holdings Limited, a company incorporated in the Cayman Islands, has announced changes in its board of directors and committee compositions. Mr. Shen Jinjun has resigned from his roles as an independent non-executive director, member of the audit and remuneration committees, and chairman of the nomination committee, effective April 8, 2025. He is succeeded by Ms. Cheng Po Chuen, who brings extensive experience from her previous roles in consulting, investment banking, and corporate advisory. This transition may impact the company’s governance and strategic direction, reflecting its adaptability and commitment to leadership renewal.

Zhongsheng Group Announces Board and Committee Structure
Apr 8, 2025

Zhongsheng Group Holdings Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The company has also established six committees to oversee various aspects of its operations, such as audit, remuneration, nomination, compliance, risk, and environmental, social, and governance concerns. This organizational structure aims to enhance corporate governance and operational efficiency, potentially impacting the company’s strategic direction and stakeholder engagement.

Zhongsheng Group Reports Decline in Annual Revenue and Profit for 2024
Mar 28, 2025

Zhongsheng Group Holdings Limited reported a decrease in total revenue and profit for the year ended December 31, 2024, with revenue dropping by 6.2% and profit by 38.5% compared to the previous year. Despite the decline in new car sales, the company saw a significant increase in pre-owned automobile trade volume by 37.9%. The board has proposed a final dividend of HK$0.678 per share, subject to shareholder approval.

Zhongsheng Group Announces Final Dividend for 2024
Mar 28, 2025

Zhongsheng Group Holdings Limited announced a final ordinary cash dividend of HKD 0.678 per share for the financial year ending December 31, 2024. The dividend will be paid on July 11, 2025, following shareholder approval on June 20, 2025. The ex-dividend date is set for June 25, 2025, with a record date of July 2, 2025. This announcement may impact the company’s financial distribution strategy and shareholder returns.

Zhongsheng Group Schedules Board Meeting to Approve 2024 Financial Results
Mar 18, 2025

Zhongsheng Group Holdings Ltd. has announced that its board of directors will meet on March 28, 2025, to review and approve the company’s final results for the fiscal year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend, reflecting the company’s ongoing financial strategy and potential returns to shareholders.

Zhongsheng Group Announces Strategic Partnership with FAW Audi
Mar 11, 2025

Zhongsheng Group Holdings Ltd. has announced a proposed strategic partnership with FAW Audi Sales Company, Ltd. to expand their dealership network in China. The partnership aims to establish at least 10 new dealership outlets in 2025 and collaborate on new energy development and business models, enhancing customer experiences. However, the agreement is currently a memorandum of understanding and its implementation is subject to further definitive agreements.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.