Zhongsheng Group Holdings Ltd. (0881) AI Stock Analysis

• Market Cap: HK$28.91B
• Dividend Yield: 5.68%
• Average Volume (3M): 5.71M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.38
• Revenue Growth: -7.86%
• EPS Growth: -36.99%
• Country: HK
• Employees: 26,357
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Auto - Dealerships
• EPS (TTM): 0.75
• Shares Outstanding: 2,385,668,500
• 10 Day Avg. Volume: 5,859,334
• 30 Day Avg. Volume: 5,712,566
• PEG Ratio: 0.55
• Price to Book (P/B): 3.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.29
• 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$23.31
• Price Target Upside: 95.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: HK$13.00 ▲(8.88%Upside)

Zhongsheng Group Holdings Ltd. receives a score primarily driven by its moderate financial performance and attractive valuation. The company faces challenges with declining margins and rising debt, but its low P/E ratio and high dividend yield present potential opportunities. Technical indicators suggest a neutral to slightly positive outlook.

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 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 with declining profit margins and inconsistent revenue growth. The balance sheet is stable, but 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	168.12B	179.29B	179.86B	175.10B	148.35B
Gross Profit	10.67B	13.76B	16.03B	18.47B	13.48B
EBITDA	2.06T	10.56B	13.02B	15.00B	10.88B
Net Income	3.21B	5.02B	6.69B	8.33B	5.54B
Balance Sheet
Total Assets	110.17B	103.27B	91.66B	85.47B	68.50B
Cash, Cash Equivalents and Short-Term Investments	18.87B	15.88B	11.93B	11.34B	8.54B
Total Debt	40.82B	36.76B	30.64B	28.73B	28.28B
Total Liabilities	63.25B	57.22B	47.54B	44.77B	41.62B
Stockholders Equity	46.83B	45.80B	43.81B	40.24B	26.46B
Cash Flow
Free Cash Flow	1.15B	3.53B	4.93B	5.79B	6.04B
Operating Cash Flow	3.44B	6.43B	8.78B	10.87B	9.32B
Investing Cash Flow	619.53M	-497.01M	-3.60B	-9.42B	-3.23B
Financing Cash Flow	-1.00B	-2.00B	-4.53B	1.30B	-3.96B

Zhongsheng Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.94
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 11.94 is below the 20-day moving average (MA) of 11.96, above the 50-day MA of 11.61, and below the 200-day MA of 12.38, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 51.49 is Neutral, neither overbought nor oversold. The STOCH value of 24.92 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0881	67 Neutral	HK$28.91B	8.27	6.95%	5.68%	-7.86%	-36.99%
Sector *	62 Neutral	$16.85B	11.50	-7.38%	2.96%	1.59%	-23.36%
CYYHF		$494.77M	18.62	1.44%	0.98%	―	―
CMEIF		$379.04M	33.80	-56.58%	2.18%	―	―
CZASF		$182.47M	―		―	―	―
HA5		€106.03M	―	-5.36%	6.25%	―	―
1771	46 Neutral	HK$174.00M	―	-9.04%	―	-23.03%	-1842.08%

Zhongsheng Group Holdings Ltd. Corporate Events

Zhongsheng Group Approves Key Resolutions at AGM

Zhongsheng Group Holdings Ltd. held its Annual General Meeting on June 20, 2025, where all proposed resolutions were passed. Key decisions included the approval of the audited financial statements, declaration of a final dividend, re-election of directors, and granting of mandates for share buybacks and issuance. The approval of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic growth.

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.

Zhongsheng Group Holdings Ltd. Announces 2025 Annual General Meeting Agenda

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

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

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.