China MeiDong Auto Holdings (1268) AI Stock Analysis

• Market Cap: $2.75B
• Dividend Yield: 2.4%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 40.7
• Beta (1Y): 1.84
• Revenue Growth: -14.04%
• EPS Growth: -4222.02%
• Country: HK
• Employees: 3,706
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Auto - Dealerships
• EPS (TTM): -0.66
• Shares Outstanding: 1,346,247,200
• 10 Day Avg. Volume: 1,883,487
• 30 Day Avg. Volume: 1,552,921
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: 4.45
• 1Y Price Target: $2.42
• Price Target Upside: 18.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 45 Neutral
• Price Target: HK$2.00 ▼(-1.96% Downside)

The overall stock score of 45 reflects significant financial challenges, including declining revenues and profitability, high leverage, and negative momentum in technical indicators. The negative P/E ratio and moderate dividend yield further highlight financial strain, making the stock less attractive to investors.

Positive Factors

Financial Performance

After-sales revenue growth, SG&A expense control and free cash flow growth are the bright spots amid a largely in-line core profit.

Inventory Management

Meidong's high inventory turnover and superb cost control capabilities have resulted in healthy cash flow, helping it survive longer.

Sales Performance

Meidong accounted for almost 19% of total Porsche sales volume in China, up from 16%, due to its high inventory turnover strategy.

Negative Factors

Financial Results

Impairment losses on intangible assets and goodwill were about RMB1.6bn higher than forecasted, impacting the financial results.

Impairment Losses

Meidong announced the booking of a >Rmb0.8bn non-cash impairment on goodwill and dealership rights to reflect a weaker outlook.

Taxation Impact

A new 10% consumption tax on luxury cars is contributing to a weaker outlook for the company.

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 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 experiencing 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.

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

China MeiDong Auto Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.04 is below the 20-day moving average (MA) of 2.08, below the 50-day MA of 2.12, and below the 200-day MA of 2.15, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.00 is Neutral, neither overbought nor oversold. The STOCH value of 19.79 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$17.92B	12.81	-3.11%	2.97%	1.30%	-14.28%
1268	45 Neutral	$2.75B	40.67	-87.36%	2.40%	-14.04%	-4222.02%
CYYHF	―	$502.01M	18.16	-26.57%	6.91%	―	―
CZASF	―	$183.71M	―		―	―	―
HA5	―	€240.18M	―	-4.42%	―	―	―
0881	75 Outperform	HK$38.62B	13.42	5.65%	4.19%	-9.51%	-25.80%
1872	47 Neutral	HK$2.50B	35.25	-8.58%	―	71.00%	-579.14%

China MeiDong Auto Holdings Corporate Events

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.

China MeiDong Auto Approves New Share Option Scheme

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

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

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.