Qingling Motors Co (1122) AI Stock Analysis

• Market Cap: HK$3.28B
• Dividend Yield: N/A
• Average Volume (3M): 666.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 7.91%
• EPS Growth: -6.56%
• Country: HK
• Employees: 2,863
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Agricultural - Machinery
• EPS (TTM): -0.01
• Shares Outstanding: 1,238,651,900
• 10 Day Avg. Volume: 602,556
• 30 Day Avg. Volume: 666,318
• PEG Ratio: -16.06
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -25.52
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.07
• Revenue Forecast (FY): HK$55.33B

• Rating: 49 Neutral
• Price Target: HK$1.00 ▼(-9.09% Downside)

The score is primarily constrained by weak financial performance: ongoing losses, thin gross margin (6.57%), and zero operating/free cash flow despite revenue growth. Technicals are supportive due to strong trend vs. moving averages and a positive MACD, but very overbought RSI/Stoch readings increase near-term reversal risk. Valuation is also a headwind because the negative P/E reflects a lack of profitability and no dividend yield data is available.

Positive Factors

Sustained Revenue Growth

Consistent top-line growth near 15% indicates expanding demand for commercial vehicles and improved market penetration. Over a 2–6 month horizon this supports steady order flow, scale benefits, and the ability to invest in product updates and distribution for durable revenue expansion.

Conservative Capital Structure

Extremely low leverage and a high equity ratio provide financial resilience, lowering bankruptcy risk and enabling strategic investments or cyclical absorption without relying on costly debt, a lasting strength for capital-intensive vehicle manufacturing.

Recurring After-sales & Partnerships

Recurring service, parts revenue and technology partnerships create stable, higher-margin aftermarket cash streams and incremental product improvement via joint ventures. These structural drivers support steadier earnings and customer retention over multiple quarters.

Negative Factors

Negative Profitability

Sustained negative operating and net margins point to structural cost or pricing challenges. Persistent unprofitability undermines free cash generation and long-term return on capital, requiring durable operational fixes to restore franchise-level economics.

No Operating or Free Cash Flow

Zero OCF and FCF signal an inability to convert revenues into internally generated capital, restricting reinvestment, debt servicing, and shareholder returns. Without sustainable cash generation, strategic options and resilience to downturns are materially constrained.

Thin Gross Margin and Negative ROE

A sub-7% gross margin suggests limited pricing power or cost inefficiencies in manufacturing. Combined with negative ROE, this indicates the business currently fails to convert invested capital into returns, a structural profitability issue that hinders long-term value creation.

Qingling Motors Co Business Overview & Revenue Model

Company Description

Qingling Motors Co., Ltd., together with its subsidiaries, produces and sells Isuzu trucks in the People's Republic of China. The company offers light, medium, and heavy-duty trucks; pick-up trucks; and chassis, automobile parts, engines, accessories, and others. It is also involved in the production of moulds for manufacturing automobile parts; and automobile retailing and after-sales service business. In addition, it exports its products. The company was founded in 1946 and is based in Central, Hong Kong. Qingling Motors Co., Ltd. is a subsidiary of Qingling Motors (Group) Company Limited.

How the Company Makes Money

Qingling Motors generates revenue primarily through the sale of its commercial vehicles, which include various models of trucks, buses, and specialty vehicles tailored for different industrial applications. The company has established key revenue streams from both domestic and international markets, with a significant portion of its sales coming from government contracts and large enterprises that require fleet solutions. Additionally, Qingling Motors benefits from after-sales services, including maintenance and spare parts sales, which contribute to its recurring revenue. Strategic partnerships with global automotive manufacturers allow the company to leverage joint ventures and technology sharing, further enhancing its product line and market competitiveness.

Qingling Motors Co Financial Statement Overview

Summary

Qingling Motors Co faces financial challenges with negative profitability metrics despite revenue growth. The strong equity position and low leverage are positives, but cash flow issues and negative margins highlight the need for strategic improvements.

Income Statement

Qingling Motors Co's income statement highlights challenges in maintaining profitability. The company's revenue has grown from 2023 to 2024 by approximately 14.7%, but it has suffered from negative EBIT and EBITDA margins, indicating operational inefficiencies or high fixed costs. The gross profit margin stands at 6.57% for 2024, reflecting cost pressures. Net profit margins remain negative, signaling the need for strategic management improvements to return to profitability.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of approximately 72.08%, indicating financial stability. The debt-to-equity ratio is very low at 0.0027, suggesting minimal leverage and low financial risk. However, the return on equity is negative due to sustained losses, which is a concern for investors seeking returns.

Cash Flow

Cash flow analysis reveals significant challenges, with operating cash flow at zero and free cash flow also at zero in the latest period, indicating potential issues with liquidity and cash generation. The company needs to improve operational efficiency to enhance cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.08B	4.12B	3.60B	3.25B	4.83B	5.09B
Gross Profit	262.25M	270.85M	223.35M	115.16M	554.34M	699.40M
EBITDA	-255.99M	-242.66M	67.01M	-335.20M	-111.66M	60.53M
Net Income	-78.34M	-55.10M	-54.27M	-14.57M	322.08M	300.99M
Balance Sheet
Total Assets	10.05B	10.18B	9.98B	10.35B	10.91B	10.97B
Cash, Cash Equivalents and Short-Term Investments	4.54B	2.96B	2.51B	3.89B	2.27B	3.28B
Total Debt	23.74M	19.77M	35.86M	42.17M	24.74M	62.38M
Total Liabilities	2.56B	2.66B	2.25B	2.56B	2.84B	2.98B
Stockholders Equity	7.31B	7.34B	7.40B	7.45B	7.74B	7.67B
Cash Flow
Free Cash Flow	-243.19M	-47.50M	-519.25M	134.84M	-126.37M	-372.81M
Operating Cash Flow	-138.92M	114.83M	-344.89M	300.66M	12.23M	-193.81M
Investing Cash Flow	-4.64M	-260.07M	424.90M	-693.68M	894.41M	-240.79M
Financing Cash Flow	-189.34M	-186.71M	-21.32M	-299.69M	-273.71M	-431.64M

Qingling Motors Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1122, the sentiment is Positive. The current price of 1.1 is above the 20-day moving average (MA) of 0.95, above the 50-day MA of 0.83, and above the 200-day MA of 0.74, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 91.51 is Negative, neither overbought nor oversold. The STOCH value of 98.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1122.

Qingling Motors Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3339	78 Outperform	HK$13.23B	10.28	11.37%	4.26%	2.60%	49.21%
1157	74 Outperform	HK$80.54B	16.40	7.29%	7.28%	-3.92%	2.33%
0631	69 Neutral	HK$29.09B	19.78	11.02%	3.41%	15.52%	-23.76%
1086	64 Neutral	HK$1.86B	6.72	4.75%	6.25%	7.94%	-24.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1122	49 Neutral	HK$3.28B	-41.06	-1.07%	―	7.91%	-6.56%
0305	46 Neutral	HK$1.58B	16.55	4.50%	1.09%	-14.23%	276.62%

Qingling Motors Co Corporate Events

Qingling Motors Renews Key Connected-Transaction Agreements With Group and Partners

Qingling Motors Co has announced the renewal and expansion of a series of continuing connected and connected transactions with its parent Qingling Group, various group subsidiaries, Qingling Moulds, the Bosch joint venture and Isuzu, following the expiry of earlier agreements. The new suite of agreements, all dated 30 December 2025, cover the ongoing supply of automobile chassis and parts, the provision of moulds and related services, warehouse and machinery leasing, equipment leases and consolidated services within the group, formalising intra-group operational arrangements under Hong Kong listing rules. These renewals are intended to maintain business continuity across the company’s core manufacturing and logistics activities, reinforce supply-chain integration with key related parties and ensure that recurring transactions remain compliant and transparent for shareholders and other stakeholders.

The most recent analyst rating on (HK:1122) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Qingling Motors Co stock, see the HK:1122 Stock Forecast page.

Qingling Motors Leases Engine Production Equipment to Connected Affiliate IEC

Qingling Motors Co. has entered into an equipment lease agreement with connected party Isuzu Engine Company (IEC), under which IEC will lease engine manufacturing equipment, including 4JZ engine production machinery, from Qingling from 1 September 2025 to 31 August 2028. The arrangement, classified as a continuing connected transaction under Hong Kong Listing Rules, carries an annual rental of approximately RMB9.57 million, subject to adjustments for changes in equipment value, depreciation, and utilisation, and grants IEC exclusive use and a right of first refusal over the leased equipment, with any agreed upgrades or technical modifications funded by Qingling. This structure underlines the close operational integration between Qingling, IEC and Isuzu, supports ongoing engine production collaboration, and formalises intra-group resource sharing while remaining below the threshold requiring independent shareholder approval, thereby balancing regulatory compliance with operational flexibility.

The most recent analyst rating on (HK:1122) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Qingling Motors Co stock, see the HK:1122 Stock Forecast page.

Qingling Motors Expands New Energy Vehicle Finance Leasing With Discloseable Repurchase Deal

Qingling Motors has entered into a new repurchase agreement dated 19 December 2025 with a financial leasing company and a dealer, which, when aggregated with several similar repurchase agreements signed over the past 12 months, constitutes a discloseable transaction under Hong Kong listing rules. The agreements support Qingling’s strategic shift in its new energy vehicle business from a traditional direct-sales model to a finance lease model, under which financial leasing companies fund vehicle purchases by end customers or dealers while Qingling undertakes repurchase obligations on leased vehicles and related debt rights, aiming to boost new energy vehicle sales and deepen its presence in this growing market segment.

The most recent analyst rating on (HK:1122) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Qingling Motors Co stock, see the HK:1122 Stock Forecast page.