Zhongsheng Group Holdings Ltd. (HK:0881)
:0881
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Zhongsheng Group Holdings Ltd.
(0881)
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Rating:46Neutral
Price Target:
HK$8.50
▼(-27.04% Downside)
Action:ReiteratedDate:03/28/26
The score is held down primarily by weakening financial performance (losses, margin compression, and higher leverage) and a clearly bearish technical setup (below key moving averages with negative MACD). A high dividend yield provides some valuation support, but the negative P/E highlights that earnings are currently under pressure.
Positive Factors
Integrated dealership model with recurring after-sales revenue
Zhongsheng’s business mixes new vehicle retailing with higher-frequency after-sales, financing and insurance services. That mix creates recurring revenue, higher customer lifetime value, and margin insulation versus pure new-car cyclical swings, supporting steadier cash generation over months to years.
Negative Factors
Sharp profitability deterioration and margin compression
The shift from multi-year profits to a 2025 net loss and negative EBIT undermines return on capital and retained earnings. Sustained margin pressure can force cost cuts, limit reinvestment, and weaken competitive positioning if pricing mix or cost structures don't recover over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated dealership model with recurring after-sales revenue
Zhongsheng’s business mixes new vehicle retailing with higher-frequency after-sales, financing and insurance services. That mix creates recurring revenue, higher customer lifetime value, and margin insulation versus pure new-car cyclical swings, supporting steadier cash generation over months to years.
Read all positive factors
Zhongsheng Group Holdings Ltd. (0881) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$20.28B
Dividend Yield5.79%
Average Volume (3M)9.15M
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth-9.51%
EPS Growth-25.80%
CountryHK
Employees26,357
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-1.24
Shares Outstanding2,385,668,500
10 Day Avg. Volume8,374,825
30 Day Avg. Volume9,153,716
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.57
Price to Sales (P/S)0.15
P/FCF Ratio4.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$11.34Price Target Upside-2.70% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.89
Revenue Forecast (FY)HK$167.51B
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,...
How the Company Makes Money
Zhongsheng makes money mainly through integrated dealership operations that combine new vehicle retailing with higher-frequency after-sales services. (1) New vehicle sales: The company sells new cars to end customers through its authorized dealers...
Zhongsheng Group Holdings Ltd. Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
52
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 160.15B | 168.12B | 179.29B | 179.86B | 175.10B |
| Gross Profit | 8.61B | 10.67B | 13.76B | 16.03B | 18.47B |
| EBITDA | 1.35B | 2.06T | 10.56B | 13.02B | 15.00B |
| Net Income | -1.63B | 3.21B | 5.02B | 6.69B | 8.33B |
Balance Sheet | |||||
| Total Assets | 103.77B | 110.17B | 103.27B | 91.66B | 85.47B |
| Cash, Cash Equivalents and Short-Term Investments | 20.57B | 18.87B | 15.88B | 11.93B | 11.34B |
| Total Debt | 47.96B | 40.82B | 36.76B | 30.64B | 28.73B |
| Total Liabilities | 60.22B | 63.25B | 57.22B | 47.54B | 44.77B |
| Stockholders Equity | 43.69B | 46.83B | 45.80B | 43.81B | 40.24B |
Cash Flow | |||||
| Free Cash Flow | 5.06B | 1.34B | 3.53B | 4.93B | 5.79B |
| Operating Cash Flow | 7.87B | 3.44B | 6.43B | 8.78B | 10.87B |
| Investing Cash Flow | -2.47B | 619.53M | -497.01M | -3.60B | -9.42B |
| Financing Cash Flow | -7.87B | -1.00B | -2.00B | -4.53B | 1.30B |
Zhongsheng Group Holdings Ltd. Technical Analysis
Negative
11.65
Price Trends
10.49
Negative
11.10
Negative
12.38
Negative
Market Momentum
-0.63
Negative
40.01
Neutral
69.95
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 11.65 is above the 20-day moving average (MA) of 8.64, above the 50-day MA of 10.49, and below the 200-day MA of 12.38, indicating a bearish trend. The MACD of -0.63 indicates Negative momentum. The RSI at 40.01 is Neutral, neither overbought nor oversold. The STOCH value of 69.95 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | HK$1.43B | -0.14 | 1123.27% | ― | -9.07% | -26.94% | |
50 Neutral | HK$1.83B | -0.86 | -127.27% | 4.01% | -14.04% | -4222.02% | |
47 Neutral | HK$2.39B | -0.29 | -26.57% | 9.05% | -13.69% | -1296.59% | |
46 Neutral | HK$20.28B | -15.16 | -3.56% | 5.79% | -9.51% | -25.80% | |
45 Neutral | HK$1.64B | -18.53 | -4.42% | 3.49% | 11.33% | 56.94% | |
41 Neutral | HK$98.40M | -0.47 | -9.08% | ― | -24.42% | -115.68% |
* Consumer Cyclical Sector Average
HK:0881
Zhongsheng Group Holdings Ltd.
8.50
-1.97
-18.82%
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Zhongsheng Group Holdings Ltd. Corporate Events
Zhongsheng Swings to Loss in 2025 Amid Margin Pressure Despite Luxury Sales Growth
Mar 26, 2026
Zhongsheng Group reported a 2.2% decline in total revenue to RMB164.4 billion for 2025, as lower sales of motor vehicles and accessories offset growth in after-sales services. New car sales volumes rose 2.5%, driven by a 6.2% increase in luxury br...
Zhongsheng Group Names Yu Jian as New CFO and Executive Director
Mar 26, 2026
Zhongsheng Group Holdings has appointed veteran finance executive Yu Jian as an executive director and chief financial officer, effective 26 March 2026, while incumbent CFO and executive director Yu Ning has resigned from the board and been redesi...
Zhongsheng Details Board Lineup and Committee Roles to Strengthen Governance
Mar 26, 2026
Zhongsheng Group Holdings Ltd. has announced the current composition of its board of directors, comprising six executive directors, one non-executive director and four independent non-executive directors. The detailed disclosure clarifies governan...
Zhongsheng Sets March 2026 Board Meeting to Approve 2025 Results and Consider Dividend
Mar 15, 2026
Zhongsheng Group Holdings Limited has scheduled a board meeting for 26 March 2026 to review and approve the audited final results for the year ended 31 December 2025. The board will also consider whether to recommend a final dividend for sharehold...
Zhongsheng Warns of 2025 Loss on Auto Downturn and Impairments
Mar 13, 2026
Zhongsheng Group Holdings has warned that it expects to swing to a loss attributable to shareholders of up to RMB2.0 billion for 2025, from a profit of RMB3.2 billion a year earlier, as its core automobile business slides into deeper gross losses ...
Zhongsheng Group Sets Out Board Composition and Committee Roles
Jan 23, 2026
Zhongsheng Group Holdings Limited has announced the current composition of its board of directors, comprising six executive directors, one non-executive director and four independent non-executive directors, underscoring a governance structure wit...
Zhongsheng Group Non-Executive Director Sun Yanjun Resigns for Retirement
Jan 23, 2026
Zhongsheng Group Holdings Limited has announced that non-executive director Mr. Sun Yanjun has resigned from the board with effect from 23 January 2026, citing retirement and a desire to devote more time to personal matters. The company said Mr. S...
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.