China MeiDong Auto Holdings (1268) AI Stock Analysis

• Market Cap: $2.83B
• Dividend Yield: 2.33%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 40.7
• Beta (1Y): 1.77
• Revenue Growth: -23.89%
• EPS Growth: -1698.95%
• Country: HK
• Employees: 3,706
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Dealerships
• EPS (TTM): -1.80
• Shares Outstanding: 1,346,247,200
• 10 Day Avg. Volume: 1,039,599
• 30 Day Avg. Volume: 1,281,722
• PEG Ratio: <0.01
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.60
• 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: $1.96
• Price Target Upside: -6.55% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: HK$2.00 ▼(-4.76%Downside)

The overall stock score of 46 reflects significant financial risks, with the company's high leverage and declining profitability being major concerns. Technical analysis shows a lack of strong directional momentum, and the negative P/E ratio highlights valuation challenges. These factors together indicate substantial caution for investors.

Positive Factors

Inventory Strategy

Meidong's high inventory turnover strategy is still working and could play an important role when car prices keep going down.

Profit Contribution

Profits from BMW and Lexus stores are likely to improve, with Lexus potentially becoming the largest profit contributor at Meidong.

Negative Factors

Impairment Losses

Impairment losses on intangible assets and goodwill were about RMB1.6bn higher than forecasted, impacting the financial results.

Impairment Risk

Porsche's worsening profit could increase impairment risks due to narrowing new-car gross margin and previously booked impairment losses.

China MeiDong Auto Holdings Business Overview & Revenue Model

Company Description

China MeiDong Auto Holdings Limited (1268) is a company primarily engaged in the automobile dealership business. The company operates a network of franchised 4S (Sales, Spare Parts, Service, and Survey) dealerships in China, focusing on the sale of premium and luxury automobile brands. MeiDong Auto provides a comprehensive range of automotive services including new car sales, after-sales services, and sales of auto parts.

How the Company Makes Money

China MeiDong Auto Holdings makes money through various revenue streams primarily centered around its dealership operations. The primary source of revenue is the sale of new cars, particularly premium and luxury brands, which constitutes a significant portion of its income. Additional revenue is generated from after-sales services such as maintenance, repairs, and the sale of spare parts, which not only provide a steady stream of income but also enhance customer loyalty. The company also benefits from partnerships with automobile manufacturers, which often include financial incentives and bonuses based on performance metrics like sales volume and customer satisfaction. These partnerships help strengthen its market position and contribute to overall profitability.

China MeiDong Auto Holdings Financial Statement Overview

Summary

China MeiDong Auto Holdings is facing financial difficulties with declining revenues and profitability, leading to significant net losses. The high leverage adds financial risk, although some balance sheet stability is present. Cash flow performance is weakening, highlighting the need for operational and financial restructuring.

Income Statement

The income statement reveals significant challenges, with a sharp decline in revenue from 2023 to 2024 resulting in negative net income. The gross profit margin is narrowing, and there is a negative EBIT margin, indicating operational inefficiencies. Profitability has sharply declined, with negative net profit margins, reflecting substantial financial pressure.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio indicating substantial financial risk. However, the equity ratio remains stable, suggesting some balance sheet strength. The return on equity has turned negative due to losses, posing a concern for equity holders.

Cash Flow

The cash flow statement reflects negative growth in free cash flow over the recent period, which is concerning. The operating cash flow to net income ratio indicates that operational cash flow is still being generated despite net losses, which is a positive sign, but overall cash flow health is declining.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.15B	28.55B	28.65B	23.58B	20.21B
Gross Profit	1.56B	2.08B	2.52B	2.77B	2.04B
EBITDA	-1.84B	1.25B	1.61B	1.80B	1.33B
Net Income	-2.26B	140.20M	521.03M	1.17B	750.56M
Balance Sheet
Total Assets	11.48B	14.22B	14.24B	9.80B	7.77B
Cash, Cash Equivalents and Short-Term Investments	2.66B	2.92B	2.35B	2.62B	2.54B
Total Debt	4.08B	5.03B	5.64B	2.58B	2.21B
Total Liabilities	8.52B	8.93B	9.81B	5.69B	4.43B
Stockholders Equity	2.83B	5.15B	4.28B	3.95B	3.23B
Cash Flow
Free Cash Flow	753.74M	469.06M	870.43M	1.45B	872.68M
Operating Cash Flow	864.65M	816.79M	1.15B	1.81B	1.19B
Investing Cash Flow	730.47M	156.80M	-3.48B	-1.38B	-145.37M
Financing Cash Flow	-1.31B	-250.29M	1.33B	-317.49M	448.58M

China MeiDong Auto Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1268, the sentiment is Negative. The current price of 2.1 is below the 20-day moving average (MA) of 2.17, below the 50-day MA of 2.12, and below the 200-day MA of 2.19, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.58 is Neutral, neither overbought nor oversold. The STOCH value of 11.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1268.

China MeiDong Auto Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0881	67 Neutral	HK$28.25B	8.08	6.95%	5.73%	-7.86%	-36.99%
Sector *	56 Neutral	HK$24.88B	3.87	-2.03%	6.54%	-0.32%	-67.68%
3669	54 Neutral	$3.94B	18.42	1.44%	7.17%	-14.25%	-65.33%
1728	52 Neutral	$1.43B	―		―	-15.73%	-73.42%
3836	47 Neutral	€951.13M	―	-5.36%	5.69%	-7.58%	-21.25%
1268	46 Neutral	$2.83B	40.67	-56.58%	2.33%	-23.89%	-1698.95%
1872	46 Neutral	HK$2.43B	35.25	-4.62%	―	5.65%	-209.76%

China MeiDong Auto Holdings Corporate Events

China MeiDong Auto Approves New Share Option Scheme

China MeiDong Auto Holdings Limited announced that the resolution to adopt a new share option scheme was approved at the extraordinary general meeting held on June 10, 2025. The resolution received significant support, with 84.91% of votes in favor, indicating strong shareholder backing for the initiative, which could potentially enhance the company’s employee incentive programs and align stakeholders’ interests.

The most recent analyst rating on (HK:1268) stock is a Buy with a HK$2.70 price target. To see the full list of analyst forecasts on China MeiDong Auto Holdings stock, see the HK:1268 Stock Forecast page.

China MeiDong Auto Holdings Passes All AGM Resolutions

China MeiDong Auto Holdings Limited announced that all resolutions proposed at its Annual General Meeting held on 20 May 2025 were passed. Key resolutions included the adoption of financial statements for 2024, re-election of directors, re-appointment of KPMG as auditors, and approval of a final dividend payment. The successful passing 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:1268) stock is a Buy with a HK$2.70 price target. To see the full list of analyst forecasts on China MeiDong Auto Holdings stock, see the HK:1268 Stock Forecast page.

China MeiDong Auto Announces EGM for New Share Option Scheme

China MeiDong Auto Holdings Limited has announced an Extraordinary General Meeting (EGM) scheduled for June 10, 2025, to consider and approve a new 2025 Share Option Scheme. This scheme, pending approval from The Stock Exchange of Hong Kong Limited, aims to enhance the company’s equity incentive plans by allowing the issuance of new shares under specified conditions, potentially impacting the company’s market positioning and shareholder value.

The most recent analyst rating on (HK:1268) stock is a Buy with a HK$2.70 price target. To see the full list of analyst forecasts on China MeiDong Auto Holdings stock, see the HK:1268 Stock Forecast page.

China MeiDong Auto Holdings Announces 2025 AGM and Key Resolutions

China MeiDong Auto Holdings Limited has announced its upcoming annual general meeting scheduled for May 20, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the 2024 financial statements, the re-election of executive directors Mr. Ye Tao and Ms. Luo Liuyu, and the reappointment of KPMG as auditors. Additionally, the meeting will consider authorizing the board to issue new shares, potentially impacting the company’s capital structure and shareholder value.

China MeiDong Auto Reschedules AGM and Book Closure Period

China MeiDong Auto Holdings Limited has announced a change in the date of its Annual General Meeting (AGM) and the book closure period. Originally scheduled for May 14, 2025, the AGM will now take place on May 20, 2025, due to administrative reasons. The book closure period for determining shareholder eligibility to attend and vote at the AGM will be from May 15 to May 20, 2025. All other information in the previous announcement remains unchanged.