Qingling Motors Co (1122) AI Stock Analysis

• Market Cap: $1.37B
• Dividend Yield: N/A
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 12.24%
• EPS Growth: -2.55%
• Country: HK
• Employees: 2,863
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Agricultural - Machinery
• EPS (TTM): -0.02
• Shares Outstanding: 1,238,651,900
• 10 Day Avg. Volume: 2,090,400
• 30 Day Avg. Volume: 1,353,647
• PEG Ratio: -0.89
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Qingling Motors Co's stock score reflects significant financial challenges, including negative profitability and inadequate cash flow. While the company has a strong balance sheet with low leverage, its technical indicators are mixed, and its valuation is unappealing due to a negative P/E ratio. Strategic initiatives to improve operational efficiency and profitability are critical for better performance.

Qingling Motors Co Business Overview & Revenue Model

Company Description

Qingling Motors Co., Ltd., together with its subsidiaries, produces and sells Isuzu trucks in the People's Republic of China. The company offers light, medium, and heavy-duty trucks; pick-up trucks; and chassis, automobile parts, engines, accessories, and others. It is also involved in the production of moulds for manufacturing automobile parts; and automobile retailing and after-sales service business. In addition, it exports its products. The company was founded in 1946 and is based in Central, Hong Kong. Qingling Motors Co., Ltd. is a subsidiary of Qingling Motors (Group) Company Limited.

How the Company Makes Money

Qingling Motors Co generates revenue primarily through the manufacturing and sale of commercial vehicles. The company capitalizes on its robust product lineup, which includes light, medium, and heavy-duty trucks, as well as buses. A significant portion of its income is derived from sales in the domestic Chinese market, where it benefits from its established brand presence and extensive distribution network. Additionally, Qingling Motors engages in strategic partnerships, notably with global automotive giants, to incorporate advanced technology and enhance vehicle performance, thereby increasing its competitiveness and appeal. These collaborations not only elevate product quality but also open up opportunities for exports, contributing to the company's revenue streams.

Qingling Motors Co Financial Statement Overview

Summary

Qingling Motors Co is facing financial difficulties, with revenue growth overshadowed by operational inefficiencies and negative profitability. Despite a strong equity position and low leverage, cash flow issues could hinder future operations. Strategic improvements are needed for better margins and cash flow.

Income Statement

Qingling Motors Co's income statement highlights challenges in maintaining profitability. The company's revenue has grown from 2023 to 2024 by approximately 14.7%, but it has suffered from negative EBIT and EBITDA margins, indicating operational inefficiencies or high fixed costs. The gross profit margin stands at 6.57% for 2024, reflecting cost pressures. Net profit margins remain negative, signaling the need for strategic management improvements to return to profitability.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of approximately 72.08%, indicating financial stability. The debt-to-equity ratio is very low at 0.0027, suggesting minimal leverage and low financial risk. However, the return on equity is negative due to sustained losses, which is a concern for investors seeking returns.

Cash Flow

Cash flow analysis reveals significant challenges, with operating cash flow at zero and free cash flow also at zero in the latest period, indicating potential issues with liquidity and cash generation. The company needs to improve operational efficiency to enhance cash flow generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.12B	3.60B	3.25B	4.83B	5.09B
	Gross Profit
270.85M	223.35M	115.16M	554.34M	699.40M
	EBIT
-230.96M	-235.87M	-419.45M	-192.31M	-11.30M
	EBITDA
-242.66M	67.01M	-335.20M	-111.66M	60.53M
	Net Income Common Stockholders
-55.10M	-54.27M	-14.57M	322.08M	300.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.96B	2.51B	3.89B	2.27B	3.28B
	Total Assets
10.18B	9.98B	10.35B	10.91B	10.97B
	Total Debt
19.77M	35.86M	42.17M	24.74M	62.38M
	Net Debt
-668.53M	-991.91M	-930.75M	-1.65B	-979.36M
	Total Liabilities
2.66B	2.25B	2.56B	2.84B	2.98B
	Stockholders Equity
7.34B	7.40B	7.45B	7.74B	7.67B
Cash Flow		Free Cash Flow
0.00	-519.25M	134.84M	-126.37M	-372.81M
	Operating Cash Flow
0.00	-344.89M	300.66M	12.23M	-193.81M
	Investing Cash Flow
0.00	424.90M	-693.68M	894.41M	-240.79M
	Financing Cash Flow
0.00	-21.32M	-299.69M	-273.71M	-431.64M

Qingling Motors Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1122, the sentiment is Positive. The current price of 0.57 is above the 20-day moving average (MA) of 0.49, above the 50-day MA of 0.51, and above the 200-day MA of 0.51, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 71.54 is Negative, neither overbought nor oversold. The STOCH value of 90.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1122.

Qingling Motors Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$7.00B	11.55	3.07%	3.89%	2.60%	-21.53%
1122	50 Neutral	$1.37B	―	-0.75%	―	12.24%	-2.55%

Qingling Motors Co Corporate Events

Qingling Motors Announces Change in PRC Affairs Secretary

Qingling Motors Co. Ltd has announced a change in its company secretary responsible for PRC affairs, with Mr. LEI Bin resigning and Ms. SONG Xiumin appointed as his successor, effective April 30, 2025. Despite Ms. SONG lacking the formal qualifications required under Hong Kong Stock Exchange rules, a waiver has been granted for three years, allowing her to serve with the assistance of Mr. TUNG Tat Chiu, a qualified solicitor. This transition reflects the company’s commitment to maintaining compliance and operational continuity.

Qingling Motors Co Enters Repurchase Agreements for New Energy Vehicles

Qingling Motors Co, a Sino-foreign joint venture company, has entered into multiple repurchase agreements involving new energy vehicles with financial leasing companies and dealers. These agreements, announced voluntarily, involve the repurchase of leased vehicles and associated debt rights, with implications under the listing rules indicating that the transactions do not constitute a notifiable event due to their size.

Qingling Motors Appoints New Chief Financial Officer

Qingling Motors Co. Ltd has announced the appointment of Ms. Song Xiumin as the new Chief Financial Officer, effective from April 1, 2025. Ms. Song, a seasoned accountant and economist, has held various significant roles within the Qingling Group, the controlling shareholder of the company, and her appointment is expected to strengthen the company’s financial management and strategic positioning.

Qingling Motors Reports 2024 Financial Results with Increased Revenue but Continued Losses

Qingling Motors Co. Ltd announced its audited consolidated results for the year ending December 31, 2024, showing a revenue increase to RMB 4,123,733,000 from RMB 3,596,535,000 in 2023. Despite the revenue growth, the company reported a loss before tax of RMB 35,213,000, which is an improvement from the previous year’s loss of RMB 47,252,000. The results reflect ongoing challenges in managing costs and expenses, impacting profitability and highlighting the need for strategic adjustments to enhance financial performance.

Qingling Motors Co. Schedules Board Meeting to Approve 2024 Financial Results

Qingling Motors Co. announced that its board of directors will meet on March 28, 2025, to review and approve the company’s final results for the year ending December 31, 2024, and to consider the payment of a final dividend. This meeting is significant as it will determine the company’s financial performance and shareholder returns, potentially impacting its market position and investor relations.