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China MeiDong Auto Holdings Ltd. (HK:1268)
:1268

China MeiDong Auto Holdings (1268) AI Stock Analysis

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HK

China MeiDong Auto Holdings

(OTC:1268)

Rating:46Neutral
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 (1268) vs. iShares MSCI Hong Kong ETF (EWH)

China MeiDong Auto Holdings Business Overview & Revenue Model

Company DescriptionChina 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 MoneyChina 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
45
Neutral
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
55
Neutral
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
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue22.15B28.55B28.65B23.58B20.21B
Gross Profit1.56B2.08B2.52B2.77B2.04B
EBITDA-1.84B1.25B1.61B1.80B1.33B
Net Income-2.26B140.20M521.03M1.17B750.56M
Balance Sheet
Total Assets11.48B14.22B14.24B9.80B7.77B
Cash, Cash Equivalents and Short-Term Investments2.66B2.92B2.35B2.62B2.54B
Total Debt4.08B5.03B5.64B2.58B2.21B
Total Liabilities8.52B8.93B9.81B5.69B4.43B
Stockholders Equity2.83B5.15B4.28B3.95B3.23B
Cash Flow
Free Cash Flow753.74M469.06M870.43M1.45B872.68M
Operating Cash Flow864.65M816.79M1.15B1.81B1.19B
Investing Cash Flow730.47M156.80M-3.48B-1.38B-145.37M
Financing Cash Flow-1.31B-250.29M1.33B-317.49M448.58M

China MeiDong Auto Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.10
Price Trends
50DMA
2.12
Negative
100DMA
2.14
Negative
200DMA
2.19
Negative
Market Momentum
MACD
<0.01
Positive
RSI
45.58
Neutral
STOCH
11.12
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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
HK$28.25B8.086.95%5.73%-7.86%-36.99%
56
Neutral
HK$24.88B3.87-2.03%6.54%-0.32%-67.68%
54
Neutral
$3.94B18.421.44%7.17%-14.25%-65.33%
52
Neutral
$1.43B
-15.73%-73.42%
47
Neutral
€951.13M-5.36%5.69%-7.58%-21.25%
46
Neutral
$2.83B40.67-56.58%2.33%-23.89%-1698.95%
46
Neutral
HK$2.43B35.25-4.62%5.65%-209.76%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1268
China MeiDong Auto Holdings
2.10
0.12
6.22%
HK:0881
Zhongsheng Group Holdings Ltd.
11.64
0.45
4.02%
HK:1872
Guan Chao Holdings Limited
4.34
4.15
2184.21%
HK:1728
China Zhengtong Auto Services Holdings
0.14
-0.06
-28.50%
HK:3669
China Yongda Automobiles Services
2.09
0.60
40.36%
HK:3836
China Harmony Auto Holding Limited
0.64
0.18
37.63%

China MeiDong Auto Holdings Corporate Events

China MeiDong Auto Approves New Share Option Scheme
Jun 10, 2025

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
May 20, 2025

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
May 20, 2025

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
Apr 23, 2025

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
Apr 16, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025