China MeiDong Auto Holdings (1268) AI Stock Analysis

• Market Cap: $2.30B
• Dividend Yield: 3.15%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: -14.04%
• EPS Growth: -4222.02%
• Country: HK
• Employees: 3,706
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.66
• 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: 2.28
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 4.27
• Enterprise Value/Ebitda: 9.15
• 1Y Price Target: $2.10
• Price Target Upside: 36.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$2.00 ▲(29.87% Upside)

The overall stock score of 45 reflects significant financial challenges, including declining revenues and profitability, high leverage, and weakening cash flow. Technical analysis indicates bearish momentum, with the stock trading below key moving averages. Valuation concerns are present due to negative earnings, though the dividend yield offers some compensation.

Positive Factors

Strategic Partnerships

These partnerships enhance product offerings and market reach, supporting long-term revenue stability and competitive positioning.

Established Dealership Network

A strong dealership network allows for better customer reach and service delivery, contributing to sustained market presence and customer loyalty.

After-Sales Services

After-sales services provide a recurring revenue stream and strengthen customer relationships, supporting long-term business sustainability.

Negative Factors

Declining Revenue

A decline in revenue growth suggests challenges in maintaining sales momentum, which could impact long-term profitability and market share.

High Leverage

High leverage can strain financial flexibility and increase risk, potentially limiting the company's ability to invest in growth opportunities.

Negative Profitability

Sustained negative profitability indicates operational inefficiencies and financial stress, which could hinder long-term business viability.

China MeiDong Auto Holdings Business Overview & Revenue Model

Company Description

China MeiDong Auto Holdings Limited, listed as 1268 on the Hong Kong Stock Exchange, is a leading automotive dealership group in China. The company primarily operates in the automotive retail sector, focusing on the sale of new and used vehicles, as well as providing after-sales services including maintenance and repairs. China MeiDong partners with several well-known automotive brands, enhancing its portfolio with a variety of vehicles to meet diverse customer needs.

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: 1.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1.54 is below the 20-day moving average (MA) of 1.61, below the 50-day MA of 1.71, and below the 200-day MA of 2.01, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 36.09 is Neutral, neither overbought nor oversold. The STOCH value of 20.74 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$28.51B	9.90	5.65%	5.77%	-9.51%	-25.80%
1728	52 Neutral	HK$1.43B	-0.25	―	―	-9.07%	-26.94%
1872	51 Neutral	HK$3.66B	―	-8.58%	―	71.00%	-579.14%
3669	47 Neutral	$3.17B	-0.92	-26.57%	8.89%	-13.69%	-1296.59%
1268	45 Neutral	$2.30B	-0.70	-87.36%	3.15%	-14.04%	-4222.02%
3836	45 Neutral	HK$1.27B	―	-4.42%	4.25%	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.