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China Zhengtong Auto Services Holdings
(1728)
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Rating:44Neutral
Price Target:
HK$0.14
â–¼(-0.71% Downside)
Action:Reiterated
Date:07/01/26
The score is held down primarily by very weak financial performance—large recent losses, negative equity, high leverage, and negative free cash flow. Technicals provide little directional evidence (price flat versus key moving averages) while elevated beta suggests higher risk. Valuation signals are also weak because a negative P/E indicates ongoing losses and no dividend yield is provided.
Positive Factors
After-sales services
A sizable after-sales business provides recurring, less cyclical revenue and higher gross-margin service lines versus new-car retailing. Over 2–6 months this supports steadier cash inflows, customer retention and cross-sell potential, helping stabilize revenue when new-vehicle demand softens.
Negative Factors
Negative shareholder equity
Negative equity indicates liabilities exceed assets, reducing financial flexibility and increasing refinancing and covenant risks. Over a multi-month horizon this structurally weakens the company's ability to access capital, absorb shocks, and invest in dealership upkeep or growth without external support.
Read all positive and negative factors
Positive Factors
Negative Factors
After-sales services
A sizable after-sales business provides recurring, less cyclical revenue and higher gross-margin service lines versus new-car retailing. Over 2–6 months this supports steadier cash inflows, customer retention and cross-sell potential, helping stabilize revenue when new-vehicle demand softens.
Read all positive factors
China Zhengtong Auto Services Holdings (1728) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.43B
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)1.81
Revenue Growth-9.75%
EPS Growth29.53%
CountryHK
Employees5,672
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-0.39
Shares Outstanding10,016,051,000
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-0.23
Price to Sales (P/S)0.05
P/FCF Ratio-0.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.22
Revenue Forecast (FY)HK$18.70B
China Zhengtong Auto Services Holdings Business Overview & Revenue Model
Company Description
Operating as an investment holding entity, China ZhengTong Auto Services Holdings Limited's core business revolves around its extensive 4S dealership network across the People's Republic of China. The company's diverse activities are organized int...
How the Company Makes Money
The company primarily makes money through (1) new vehicle sales: revenue is generated from retailing passenger vehicles through its dealership network, typically earning a gross margin based on the difference between the selling price to customers...
China Zhengtong Auto Services Holdings Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
9
Very Negative
Cash Flow
14
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 18.23B | 20.75B | 24.13B | 22.61B | 20.99B |
| Gross Profit | 90.92M | 779.07M | 1.01B | 1.59B | 1.24B |
| EBITDA | -635.34M | -6.29M | 982.32M | 900.12M | -178.45M |
| Net Income | -2.52B | -1.60B | -849.28M | -297.42M | -2.20B |
Balance Sheet | |||||
| Total Assets | 25.31B | 29.22B | 29.51B | 27.73B | 26.13B |
| Cash, Cash Equivalents and Short-Term Investments | 4.61B | 631.09M | 871.20M | 837.65M | 745.20M |
| Total Debt | 21.27B | 21.31B | 21.04B | 20.02B | 18.14B |
| Total Liabilities | 27.55B | 28.15B | 28.23B | 27.51B | 25.59B |
| Stockholders Equity | -4.07B | -356.68M | 361.83M | 193.39M | 508.43M |
Cash Flow | |||||
| Free Cash Flow | -1.17B | -347.73M | -1.09B | -712.02M | -486.33M |
| Operating Cash Flow | -847.96M | 31.09M | 36.79M | 158.79M | 155.63M |
| Investing Cash Flow | -182.58M | 202.72M | -793.48M | 1.30B | -345.83M |
| Financing Cash Flow | -809.49M | -406.15M | 767.08M | -936.38M | -90.45M |
China Zhengtong Auto Services Holdings Technical Analysis
Negative
0.14
Price Trends
0.14
Positive
0.14
Negative
0.14
Negative
Market Momentum
<0.01
Neutral
100.00
Negative
100.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1728, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.14, and below the 200-day MA of 0.14, indicating a neutral trend. The MACD of <0.01 indicates Neutral momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1728.
China Zhengtong Auto Services Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | HK$11.71B | -6.07 | -3.56% | 5.79% | -2.14% | -153.42% | |
49 Neutral | HK$1.41B | 146.25 | 0.89% | ― | -33.67% | ― | |
44 Neutral | HK$1.43B | -0.32 | 1123.27% | ― | -9.75% | 29.53% | |
44 Neutral | HK$1.36B | -0.24 | -26.57% | 9.05% | -13.88% | -2685.61% | |
44 Neutral | HK$713.51M | -0.81 | -127.27% | 4.01% | -9.61% | 67.03% | |
42 Neutral | HK$965.76M | -1.43 | -4.42% | 3.49% | 28.31% | -119.12% |
* Consumer Cyclical Sector Average
HK:1728
China Zhengtong Auto Services Holdings
0.14
0.00
0.00%
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China Zhengtong Auto Services Holdings Corporate Events
China Zhengtong Plans HK$330 Million Share Placement to Boost Working Capital
Jun 30, 2026
China Zhengtong Auto Services Holdings has entered into an agreement with a placing agent to issue up to 2,203,531,500 new shares, representing about 22% of its existing share capital and 18.03% of the enlarged share base. The new shares, to be al...
China Zhengtong Restructures Operations and Moves to Restore Public Float
Jun 30, 2026
China Zhengtong Auto Services has continued to refine its business amid an ongoing trading suspension in Hong Kong, emphasizing mid-to-high-end and new energy vehicle brands while tightening management and cutting weaker outlets. It has completed ...
China ZhengTong Wins Shareholder Approval for Bulk Commodity Hedging Plan
Jun 22, 2026
China ZhengTong Auto Services Holdings reported that shareholders overwhelmingly approved an ordinary resolution at an extraordinary general meeting held on 22 June 2026. The resolution authorises the company to carry out bulk commodity derivative...
China Zhengtong Auto Wins Full Shareholder Backing at 2026 AGM
Jun 22, 2026
China Zhengtong Auto Services Holdings reported that all resolutions at its 22 June 2026 annual general meeting were approved by shareholders through a poll, with each motion receiving 100% of votes cast. Shareholders received the 2025 audited fin...
China Zhengtong Ends Connected Office Lease to Streamline Network
Jun 8, 2026
China Zhengtong Auto Services has agreed to terminate existing property lease agreements for office premises at ITG Park in Xiamen with connected party ITG TEDA Bonded Logistics, effective 1 April 2026. Under a further supplemental agreement signe...
China ZhengTong Formalises Connected Security and Cleaning Services Deal With ITG Unit
Jun 1, 2026
China ZhengTong Auto Services Holdings has signed a Security and Cleaning Services Framework Agreement with ITG Urban Services, an associate of its controlling shareholder, to provide security and cleaning services for properties owned or used by ...
China ZhengTong Sets Three-Year IT Services Deal With Controlling Shareholder’s Affiliate
Jun 1, 2026
China ZhengTong Auto Services Holdings has signed an IT Services Framework Agreement with Xindeco Digital, an associate of its controlling shareholder ITG Holding, under which Xindeco Digital Group will provide IT services to China ZhengTong from ...
China ZhengTong Calls EGM to Approve Commodity Derivatives Hedging Plan
May 29, 2026
China ZhengTong Auto Services Holdings has called an extraordinary general meeting in Xiamen on 22 June 2026 for shareholders to vote on authorizing its bulk commodity derivatives hedging business. The move seeks formal shareholder approval for th...
China ZhengTong Auto Sets 2026 AGM, Seeks Share Buyback Mandate Renewal
May 29, 2026
China ZhengTong Auto Services Holdings has convened its 2026 annual general meeting for 22 June 2026 in Xiamen, Fujian, where shareholders will review the audited consolidated financial statements and board and auditor reports for the year ended 3...
China Zhengtong Auto Services Completes Disposal of Shenzhenshi Huianqi
May 19, 2026
China Zhengtong Auto Services Holdings has completed the disposal of its subsidiary group Shenzhenshi Huianqi, following approval by independent shareholders at an extraordinary general meeting. With completion on 19 May 2026, the company no longe...
China Zhengtong Auto to Hedge Metal Price Risks as It Expands into Commodity Trading
May 13, 2026
China Zhengtong Auto Services Holdings plans to expand into bulk commodity trading linked to the automotive industry chain, targeting non‑ferrous metals such as copper, aluminum, zinc and lead that are critical to new energy vehicle and auto...
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.