China MeiDong Auto Holdings (1268) AI Stock Analysis

• Market Cap: $2.26B
• Dividend Yield: 2.89%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 40.7
• Beta (1Y): 1.80
• 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: 2.32
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 4.27
• Enterprise Value/Ebitda: 9.15
• 1Y Price Target: $2.33
• Price Target Upside: 38.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 45 Neutral
• Price Target: HK$2.00 ▲(19.05% 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 (1268) is a leading automotive retailer in China, primarily engaged in the sale of passenger vehicles and the provision of after-sales services. The company operates a network of dealerships across China, offering a variety of premium and mid-tier automotive brands to its customers. It focuses on delivering high-quality customer service and maintaining strong relationships with automobile manufacturers.

How the Company Makes Money

China MeiDong Auto Holdings generates revenue primarily through the sale of new cars and the provision of after-sales services such as maintenance, repair, and parts supply. The company's key revenue streams include vehicle sales commissions, service fees, and sales of automotive parts and accessories. It benefits from strategic partnerships with leading automotive manufacturers, which provide it with exclusive distribution rights and access to a diverse range of popular car models. Additionally, MeiDong leverages its established dealership network to enhance its market presence and customer reach, contributing to its 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 company's 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 to improve future prospects.

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: 1.68
• 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 1.68 is below the 20-day moving average (MA) of 1.81, below the 50-day MA of 1.95, and below the 200-day MA of 2.09, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 31.06 is Neutral, neither overbought nor oversold. The STOCH value of 33.00 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
0881	67 Neutral	HK$31.09B	10.80	5.65%	5.18%	-9.51%	-25.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1728	52 Neutral	HK$1.43B	―	―	―	-9.07%	-26.94%
1872	51 Neutral	HK$3.96B	―	-8.58%	―	71.00%	-579.14%
3836	47 Neutral	HK$1.98B	―	-4.42%	2.96%	11.33%	56.94%
3669	46 Neutral	$3.28B	18.51	-26.57%	8.69%	-13.69%	-1296.59%
1268	45 Neutral	$2.26B	40.67	-87.36%	2.89%	-14.04%	-4222.02%

China MeiDong Auto Holdings Corporate Events

China MeiDong Auto Holdings Enhances Nomination Committee Governance

China MeiDong Auto Holdings Limited has announced updates to the terms of reference for its Nomination Committee of the Board of Directors. The changes emphasize the importance of having a majority of independent non-executive directors and ensuring gender diversity within the committee. This move is likely to enhance the governance structure of the company and align with best practices in corporate governance, potentially strengthening investor confidence and stakeholder relations.

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.

China MeiDong Auto Holdings Reports Financial Losses Amid Impairment Challenges

China MeiDong Auto Holdings reported a revenue of RMB10,134.7 million for the first half of 2025, marking a 4.9% decrease from the previous year. The company faced a significant decline in gross profit by 41.0% and reported a loss of RMB818.2 million for the period. The results were impacted by a non-cash impairment of goodwill and intangible assets related to car dealerships, amounting to RMB867.9 million. These financial challenges reflect the company’s current operational difficulties and may affect its market positioning and stakeholder confidence.

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.

China MeiDong Auto Holdings Announces Board Roles and Functions

China MeiDong Auto Holdings Limited has announced the roles and functions of its board members, highlighting the leadership structure within the company. This announcement underscores the company’s commitment to strategic planning and operational oversight, which is crucial for maintaining its market position and ensuring effective governance.

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.

China MeiDong Auto Issues Profit Warning Amid Market Challenges

China MeiDong Auto Holdings Limited has issued a profit warning for the first half of 2025, expecting a significant loss attributable to equity shareholders of not less than RMB0.8 billion. This loss is primarily due to macroeconomic challenges, weakened domestic consumption, supply-demand imbalances in passenger vehicles, and intensified price wars in the luxury vehicle segment. Additionally, the company anticipates a decline in revenue from mortgage facilitation services and has recognized a substantial non-cash impairment on goodwill and dealership rights. Despite these challenges, the company maintains that its overall financial position remains stable with healthy cash flow from operating activities.

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.

China MeiDong Auto Announces 2024 Final Dividend Exchange Rate

China MeiDong Auto Holdings Limited announced the exchange rate for the payment of its 2024 final dividend. The dividend, initially declared in Renminbi, will be paid in Hong Kong dollars at a rate of RMB1 to HK$1.09934. This decision reflects the company’s commitment to its shareholders, with cheques expected to be mailed on 27 August 2025.

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 Final Dividend for 2024

China MeiDong Auto Holdings Limited announced a final ordinary cash dividend of RMB 0.0445 per share for the financial year ending December 31, 2024. The dividend will be paid in Hong Kong dollars at a rate of HKD 0.04892 per share, with the payment date set for August 27, 2025. This announcement reflects the company’s financial performance and commitment to returning value to shareholders, potentially impacting investor sentiment and the company’s market positioning.

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 to Review Interim Results and Dividend

China MeiDong Auto Holdings Limited has announced a board meeting scheduled for August 27, 2025, to discuss the interim results for the first half of 2025 and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns for shareholders, impacting its market positioning and investor relations.

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.