Qingling Motors Co (1122) AI Stock Analysis

• Market Cap: $1.84B
• Dividend Yield: N/A
• Average Volume (3M): 666.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• 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: -1.63
• Enterprise Value/Revenue: -0.73
• Enterprise Value/Gross Profit: -11.39
• Enterprise Value/Ebitda: 11.67
• 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): $55.33B

• Rating: 48 Neutral
• Price Target: HK$0.50 ▼(-33.33% Downside)

Qingling Motors Co's stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. Technical indicators suggest weak momentum, and the valuation is unattractive due to a negative P/E ratio. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Strategic Partnership

The partnership with Isuzu Motors provides Qingling Motors with advanced technology and product enhancements, strengthening its competitive position and supporting long-term growth in the commercial vehicle market.

Revenue Growth

Consistent revenue growth indicates expanding market reach and effective sales strategies, which are crucial for sustaining business operations and investing in future growth opportunities.

Financial Stability

A strong equity position and minimal leverage provide Qingling Motors with financial stability, reducing risk and enhancing its ability to weather economic fluctuations and invest in strategic initiatives.

Negative Factors

Negative Profitability

Negative profitability metrics indicate operational inefficiencies or high fixed costs, which can undermine long-term financial health and limit the company's ability to reinvest in growth.

Cash Flow Challenges

Zero cash flow generation highlights liquidity issues, potentially constraining Qingling Motors' ability to fund operations, pay down debt, or invest in new opportunities, impacting long-term sustainability.

Negative Net Profit Margins

Sustained negative net profit margins indicate a need for strategic changes to improve cost management and operational efficiency, crucial for achieving long-term profitability and shareholder value.

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: Neutral
• Last Price: 0.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1122, the sentiment is Neutral. The current price of 0.75 is below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.78, and above the 200-day MA of 0.69, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.73 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$13.23B	10.28	11.37%	4.14%	2.60%	49.21%
1157	74 Outperform	$74.85B	14.67	7.29%	4.16%	-3.92%	2.33%
0631	69 Neutral	$25.43B	17.29	11.02%	3.68%	15.52%	-23.76%
1086	64 Neutral	HK$1.89B	6.84	4.75%	6.19%	7.94%	-24.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1122	48 Neutral	$1.84B	―	-1.07%	―	7.91%	-6.56%
0305	46 Neutral	HK$1.55B	16.21	4.50%	1.06%	-14.23%	276.62%

Qingling Motors Co Corporate Events

Qingling Motors Co. Discloses Details on Repurchase Agreement

Qingling Motors Co. has announced a supplemental disclosure regarding a repurchase agreement, providing details about the ultimate beneficial owners of the involved Financial Leasing Company and the Dealer. The Financial Leasing Company is majorly owned by Chongqing City Transportation Development & Investment Group Co., Ltd., while the Dealer is wholly owned by Chinese merchant Mr. Li Shuibo. Both entities and their owners are independent third parties, and this additional information does not alter the original announcement’s content.

Qingling Motors Co Shifts to Finance Lease Model with New Repurchase Agreement

Qingling Motors Co announced the signing of a Repurchase Agreement on September 19, 2025, with a Financial Leasing Company and a Dealer. This agreement is part of the company’s strategy to shift its business model for new energy vehicles from traditional sales to a finance lease model. This model involves financial leasing services provided to end customers or dealers, with Qingling Motors Co offering repurchase obligations to ensure debt repayment. The transactions under this agreement are considered discloseable under the Hong Kong Stock Exchange Listing Rules, as they exceed certain percentage thresholds, thus requiring notification and announcement.