Qingling Motors Co (1122) AI Stock Analysis

• Market Cap: $1.84B
• Dividend Yield: N/A
• Average Volume (3M): 1.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: 7.91%
• EPS Growth: -6.56%
• Country: HK
• Employees: 2,863
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Agricultural - Machinery
• EPS (TTM): -0.01
• Shares Outstanding: 1,238,651,900
• 10 Day Avg. Volume: 2,318,840
• 30 Day Avg. Volume: 1,833,151
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -1.63
• Enterprise Value/Revenue: -0.72
• Enterprise Value/Gross Profit: -11.03
• Enterprise Value/Ebitda: 12.31
• 1Y Price Target: $0.47
• Price Target Upside: -37.70% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

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

Qingling Motors Co's overall stock score is primarily impacted by its financial performance, which is hindered by negative profitability and cash flow issues. Technical analysis provides some support with bullish price trends, but valuation concerns due to a negative P/E ratio and lack of dividends weigh heavily on the score.

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 Co. primarily generates revenue through the manufacturing and sale of commercial vehicles, including trucks and buses. The company benefits from its strategic partnership with Isuzu Motors, which enhances its product offerings and technological capabilities. Qingling Motors also earns income from after-sales services, spare parts sales, and maintenance contracts, providing a comprehensive support system for its vehicles. The company's revenue is further bolstered by its expansive distribution network, both domestically and internationally, enabling it to reach a broad customer base.

Qingling Motors Co Financial Statement Overview

Summary

Qingling Motors Co faces financial challenges, as revenue growth is offset by negative EBIT and EBITDA margins, reflecting operational inefficiencies. Although the balance sheet shows financial stability with a strong equity position and low leverage, cash flow constraints are significant, with zero operating and free cash flow, indicating potential liquidity issues.

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

Qingling Motors Co Technical Analysis

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

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 0.75 is below the 20-day moving average (MA) of 0.77, below the 50-day MA of 0.79, and above the 200-day MA of 0.61, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.31 is Neutral, neither overbought nor oversold. The STOCH value of 16.05 is Positive, 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
Sector *	61 Neutral	$18.02B	12.77	-0.74%	3.01%	1.30%	-13.03%
1122	48 Neutral	$1.84B	―	-1.07%	―	7.91%	-6.56%
GBBYF	―	$280.77M	8.02	4.75%	5.25%	―	―
LONKF	―	$1.52B	9.73	11.37%	4.42%	―	―
SNYYF	―	$2.88B	15.23	11.02%	4.15%	―	―
ZLIOF	―	$8.66B	13.29	7.06%	4.91%	―	―
0305	55 Neutral	HK$2.01B	21.03	4.50%	0.79%	-14.23%	276.62%

Qingling Motors Co Corporate Events

Qingling Motors Updates Nomination Committee Terms

Qingling Motors Co. Ltd has revised the terms of reference for its Nomination Committee, effective from July 1, 2025. This committee, formed in 2012, is tasked with reviewing the board’s structure and composition to align with the company’s corporate strategy. The revision aims to ensure a diverse and skilled board, enhancing the company’s governance and strategic direction.

Qingling Motors Co. Announces Strategic Changes Following AGM

Qingling Motors Co. recently held its Annual General Meeting (AGM) where all proposed resolutions were successfully passed by shareholders. Significant changes include amendments to the articles of association and the abolishment of the supervisory committee, indicating a strategic shift in corporate governance. These developments may impact the company’s operational structure and its positioning within the automotive industry, potentially affecting stakeholders.

Qingling Motors Co. Ltd Announces Strategic Equity Transfer to Boost New Energy Initiatives

Qingling Motors Co. Ltd announced a significant equity transfer involving its controlling shareholder, Qingling Group, where the Chongqing Municipal People’s Government plans to transfer 80% equity interests in Qingling Group to Chongqing Yufu Holding Group Co., Ltd. This move is expected to enhance the company’s integration with upstream and downstream industrial chains, leveraging state-owned capital investment strategies to foster synergy between industrial and financial capital. The company is actively participating in Chongqing’s modern manufacturing and technological innovation initiatives, focusing on new energy transformation and strategic collaborations to maintain its competitive edge and drive high-quality development.

Qingling Motors Proposes Key Amendments to Articles of Association

Qingling Motors Co. Ltd has announced proposed amendments to its Articles of Association, aligning with new regulations from the China Securities Regulatory Commission and changes in the PRC Company Law. These amendments include replacing the Supervisory Committee with an Audit Committee, updating corporate communication methods to electronic formats, and allowing virtual attendance at general meetings. The proposed changes aim to enhance corporate governance and comply with updated legal frameworks, impacting the company’s operational structure and shareholder engagement.

Qingling Motors Announces AGM and Key Resolutions for 2025

Qingling Motors Co. Ltd has announced its upcoming Annual General Meeting (AGM) scheduled for June 27, 2025, in Chongqing, China. Key resolutions to be discussed include the approval of the 2024 financial reports, reappointment of auditors for 2025, and significant amendments to the company’s articles of association, including the abolishment of the supervisory committee. These changes could impact the company’s governance structure and operational strategies, potentially affecting stakeholders and its market positioning.