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China MeiDong Auto Holdings Ltd. (HK:1268)
:1268
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China MeiDong Auto Holdings (1268) AI Stock Analysis

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HK:1268

China MeiDong Auto Holdings

(1268)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
HK$0.50
▼(-55.41% Downside)
Action:Reiterated
Date:05/27/26
The score is held down primarily by weakened financial performance (ongoing losses, higher leverage, and negative 2025 cash flow) and a strongly bearish technical setup (price below all key moving averages with negative MACD). A high dividend yield offers some support, but the negative P/E reflects the underlying earnings risk.
Positive Factors
Recurring after-sales revenue
The dealership model generates recurring, higher-margin after-sales income (service, parts, repairs) tied to the installed vehicle base. Over 2–6 months this provides durable cash flow and margin support even if new-vehicle volumes fluctuate, helping stabilize overall profitability.
Negative Factors
Rising leverage
Leverage rising to roughly 2.0x materially weakens financial flexibility and heightens refinancing and covenant risk. In a cyclical sector like auto retail, elevated debt makes the company more sensitive to revenue or margin shocks and constrains capacity to invest or absorb further downturns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring after-sales revenue
The dealership model generates recurring, higher-margin after-sales income (service, parts, repairs) tied to the installed vehicle base. Over 2–6 months this provides durable cash flow and margin support even if new-vehicle volumes fluctuate, helping stabilize overall profitability.
Read all positive factors

China MeiDong Auto Holdings (1268) vs. iShares MSCI Hong Kong ETF (EWH)

China MeiDong Auto Holdings Business Overview & Revenue Model

Company Description
As an investment holding company, China MeiDong Auto Holdings Limited operates as a leading automobile dealership group throughout the People's Republic of China. Its primary activities include the retail of new passenger vehicles and their corres...
How the Company Makes Money
China MeiDong Auto Holdings makes money primarily through (1) selling new passenger vehicles and (2) earning recurring after-sales and related service income tied to the vehicle parc it serves. 1) New vehicle sales (primary revenue stream) - Ret...

China MeiDong Auto Holdings Financial Statement Overview

Summary
Financials are under significant pressure: profitability deteriorated sharply with heavy losses in 2024 and continued losses in 2025 despite a rebound. Leverage has worsened (debt-to-equity rising to ~2.0x) as equity weakened, and cash flow turned negative in 2025 after being positive in prior years—raising funding and stability risks.
Income Statement
28
Negative
Balance Sheet
34
Negative
Cash Flow
31
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue20.02B22.15B28.55B28.65B23.58B
Gross Profit1.15B1.56B2.08B2.52B2.77B
EBITDA452.43M-1.84B1.25B1.61B1.80B
Net Income-754.99M-2.26B140.20M521.03M1.17B
Balance Sheet
Total Assets7.52B11.48B14.22B14.24B9.80B
Cash, Cash Equivalents and Short-Term Investments2.02B2.66B2.92B2.35B2.62B
Total Debt4.05B4.08B5.03B5.64B2.58B
Total Liabilities5.38B8.52B8.93B9.81B5.69B
Stockholders Equity2.02B2.83B5.15B4.28B3.95B
Cash Flow
Free Cash Flow-665.79M753.74M469.06M870.43M1.45B
Operating Cash Flow-528.10M864.65M816.79M1.15B1.81B
Investing Cash Flow-261.06M730.47M156.80M-3.48B-1.38B
Financing Cash Flow-2.06B-1.31B-250.29M1.33B-317.49M

China MeiDong Auto Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.11
Price Trends
50DMA
0.73
Negative
100DMA
1.11
Negative
200DMA
1.34
Negative
Market Momentum
MACD
-0.07
Negative
RSI
31.28
Neutral
STOCH
11.45
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 1.11 is above the 20-day moving average (MA) of 0.57, above the 50-day MA of 0.73, and below the 200-day MA of 1.34, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 31.28 is Neutral, neither overbought nor oversold. The STOCH value of 11.45 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
51
Neutral
HK$12.64B-6.38-3.56%5.79%-2.14%-153.42%
49
Neutral
HK$1.39B140.550.89%-33.67%
44
Neutral
HK$686.59M-0.79-127.27%4.01%-9.61%67.03%
44
Neutral
HK$1.40B-0.25-26.57%9.05%-13.88%-2685.61%
44
Neutral
HK$1.43B-0.471123.27%-9.75%29.53%
42
Neutral
HK$1.16B-1.57-4.42%3.49%28.31%-119.12%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1268
China MeiDong Auto Holdings
0.51
-1.63
-76.17%
HK:3669
China Yongda Automobiles Services
0.80
-1.23
-60.65%
HK:1728
China Zhengtong Auto Services Holdings
0.14
0.00
0.00%
HK:3836
China Harmony Auto Holding Limited
0.76
0.12
18.75%
HK:0881
Zhongsheng Group Holdings Ltd.
5.06
-6.52
-56.30%
HK:2443
Autostreets Development Limited
1.61
-2.72
-62.82%

China MeiDong Auto Holdings Corporate Events

China MeiDong Auto Shareholders Approve All AGM Resolutions and 2025 Dividend
May 13, 2026
China MeiDong Auto Holdings has announced that all resolutions proposed at its annual general meeting on 13 May 2026 were duly approved by shareholders by way of poll. The meeting endorsed the 2025 audited financial statements, re-elected two inde...
China MeiDong Auto Sets 2026 AGM to Approve Results, Board Mandates and Share Issue Authority
Apr 20, 2026
China MeiDong Auto Holdings has called its annual general meeting for 13 May 2026 in Hong Kong, where shareholders will review the audited financial statements for the year ended 31 December 2025 and the reports from the board and independent audi...
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: May 27, 2026