China MeiDong Auto Holdings (1268) AI Stock Analysis

• Market Cap: HK$1.71B
• Dividend Yield: 4.01%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -14.04%
• EPS Growth: -4222.02%
• Country: HK
• Employees: 3,706
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.68
• Shares Outstanding: 1,346,247,200
• 10 Day Avg. Volume: 1,642,239
• 30 Day Avg. Volume: 1,301,103
• PEG Ratio: <0.01
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 3.87
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$1.50 ▲(20.00% Upside)

The score is held down primarily by weak financial performance (net losses, shrinking/negative margins, and high leverage) and only mixed technicals (below key longer-term moving averages with negative MACD). Valuation is also constrained by a negative P/E, partially offset by a moderate dividend yield.

Positive Factors

Recurring after-sales and financing revenue

A diversified revenue mix including after-sales services and financing provides recurring cash flows and higher customer lifetime value. Over months this supports margin resilience, smooths revenue cyclicality from new-car sales and enables cross-sell opportunities that sustain operating cash.

Established partnerships with automotive brands

Authorized relationships with multiple well-known manufacturers secure supply, broaden the model portfolio and enhance brand credibility. This structural advantage helps retain customers, negotiate favorable terms, and supports scale benefits across locations over the medium term.

Operating cash generation despite losses

Positive operating cash flow even amid accounting losses indicates core retail operations still generate liquidity. That cash buffer provides time to restructure costs, invest in after-sales, and service short-term obligations, reducing immediate solvency risk over the coming quarters.

Negative Factors

Negative profitability and narrowing margins

Sustained negative net income and shrinking gross and EBIT margins point to structural profitability problems. Over months this erodes retained earnings, limits reinvestment, and pressures the ability to fund dealer operations or upgrade facilities without external support.

High leverage and debt risk

Elevated leverage raises fixed financing costs and reduces financial flexibility. In a cyclical auto retail environment this increases refinancing and liquidity risk, constrains capital allocation for growth or inventory, and amplifies downside if sales remain weak.

Declining revenue and collapsed EPS

Meaningful top-line decline and an extreme EPS drop reflect weakening demand or margin compression. Over the medium term this reduces scale economies, dealer bargaining leverage and ability to recover fixed costs, making a sustained operational turnaround more difficult.

China MeiDong Auto Holdings Business Overview & Revenue Model

Company Description

China MeiDong Auto Holdings Limited, an investment holding company, operates as an automobile dealer in the People's Republic of China. The company is involved in the sale of new passenger cars and spare parts; and provision of service and survey. It also provides after-sales services, such as auto registration, insurance, auto parts, repair and replacement, sales and maintenance of automotive supplies, etc.; financing referral solutions; and other value added services. In addition, the company engages in the trading of used vehicles and property management. Its dealership stores cover various automobile brands comprising BMW/Mini, Audi, Lexus, Toyota, Hyundai, and Porsche. As of December 31, 2021, it operated 70 self-operated stores in Beijing, Hebei, Hubei, Hunan, Jiangxi, Fujian, Guangdong, Gansu, and Anhui provinces. The company was founded in 2003 and is headquartered in Dongguan, the People's Republic of China. China MeiDong Auto Holdings Limited is a subsidiary of Apex Sail Limited.

How the Company Makes Money

China MeiDong Auto Holdings generates revenue through multiple streams, primarily from the sale of new and used vehicles. The company has established partnerships with various automotive manufacturers, allowing it to offer a broad range of vehicles, which is a significant contributor to its sales. In addition to vehicle sales, the company earns revenue from after-sales services, which include maintenance, repair services, and the sale of auto parts. The after-sales segment is crucial as it provides recurring income and fosters customer loyalty. Furthermore, financing services offered to customers when purchasing vehicles also contribute to revenue, as the company may earn commissions or fees from financial institutions. Overall, the combination of vehicle sales, after-sales services, and financing solutions forms the core of China MeiDong's revenue model.

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. High leverage adds financial risk, though 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.63B	22.15B	28.55B	28.65B	23.58B	20.21B
Gross Profit	1.23B	1.56B	2.08B	2.52B	2.77B	2.04B
EBITDA	574.36M	-1.84B	1.25B	1.61B	1.80B	1.33B
Net Income	-3.05B	-2.26B	140.20M	521.03M	1.17B	750.56M
Balance Sheet
Total Assets	7.04B	11.48B	14.22B	14.24B	9.80B	7.77B
Cash, Cash Equivalents and Short-Term Investments	891.78M	2.66B	2.92B	2.35B	2.62B	2.54B
Total Debt	2.17B	4.08B	5.03B	5.64B	2.58B	2.21B
Total Liabilities	4.96B	8.52B	8.93B	9.81B	5.69B	4.43B
Stockholders Equity	1.96B	2.83B	5.15B	4.28B	3.95B	3.23B
Cash Flow
Free Cash Flow	251.27M	753.74M	469.06M	870.43M	1.45B	872.68M
Operating Cash Flow	280.63M	864.65M	816.79M	1.15B	1.81B	1.19B
Investing Cash Flow	302.44M	730.47M	156.80M	-3.48B	-1.38B	-145.37M
Financing Cash Flow	-495.73M	-1.31B	-250.29M	1.33B	-317.49M	448.58M

China MeiDong Auto Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.25 is above the 20-day moving average (MA) of 1.24, below the 50-day MA of 1.44, and below the 200-day MA of 1.88, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 57.58 is Neutral, 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
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0881	58 Neutral	HK$29.61B	10.29	5.65%	5.79%	-9.51%	-25.80%
1728	52 Neutral	HK$1.43B	-0.25	―	―	-9.07%	-26.94%
1872	51 Neutral	HK$4.64B	-26.73	-8.58%	―	71.00%	-579.14%
1268	50 Neutral	HK$1.71B	-0.52	-87.36%	4.01%	-14.04%	-4222.02%
3669	47 Neutral	HK$3.06B	-0.89	-26.57%	9.05%	-13.69%	-1296.59%
3836	45 Neutral	HK$1.67B	-6.90	-4.42%	3.49%	11.33%	56.94%

China MeiDong Auto Holdings Corporate Events

China MeiDong Auto Makes Strategic US$20 Million Investment in Seres

China MeiDong Auto Holdings Limited has entered into a Cornerstone Investment Agreement with Seres and CICC, agreeing to invest US$20 million in Seres’ international offering. This investment, classified as a discloseable transaction under Hong Kong’s Listing Rules, signifies MeiDong’s strategic positioning and potential expansion in the automotive sector, potentially impacting its market presence and stakeholder interests.

The most recent analyst rating on (HK:1268) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China MeiDong Auto Holdings stock, see the HK:1268 Stock Forecast page.