China MeiDong Auto Holdings (1268) AI Stock Analysis

• Market Cap: $3.10B
• Dividend Yield: 0.41%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 40.7
• Beta (1Y): 1.80
• Revenue Growth: -23.89%
• EPS Growth: -1698.95%
• Country: HK
• Employees: 3,706
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Dealerships
• EPS (TTM): -1.82
• Shares Outstanding: 1,346,247,200
• 10 Day Avg. Volume: 1,343,713
• 30 Day Avg. Volume: 1,558,072
• PEG Ratio: <0.01
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.60
• 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: $3.22
• Price Target Upside: 50.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: HK$2.00 ▼(-6.54%Downside)

The overall stock score reflects significant financial challenges, with declining revenues and profitability as the most impactful factors. Technical analysis provides some neutral signals, but valuation concerns with a negative P/E ratio further weigh down the score. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Cash Flow

Meidong's free cash flow is expected to remain stable, supported by operational efficiency, contributing to a net cash position at the end of FY24.

Inventory Strategy

Meidong's high inventory turnover strategy is still working and could play an important role when car prices keep going down.

Profit Contributors

Profits from BMW and Lexus stores are likely to improve, with Lexus potentially becoming the largest profit contributor at Meidong.

Negative Factors

Impairment Losses

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

New-Car Margins

Porsche's worsening profit could increase impairment risks due to narrowing new-car gross margin and previously booked impairment losses.

Sector Risks

Key risks to the stock rating and target price include lower sales and/or new-car margins than expected and a sector de-rating.

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 makes money through various revenue streams primarily centered around its dealership operations. The primary source of revenue is the sale of new cars, particularly premium and luxury brands, which constitutes a significant portion of its income. Additional revenue is generated from after-sales services such as maintenance, repairs, and the sale of spare parts, which not only provide a steady stream of income but also enhance customer loyalty. The company also benefits from partnerships with automobile manufacturers, which often include financial incentives and bonuses based on performance metrics like sales volume and customer satisfaction. These partnerships help strengthen its market position and contribute to 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 high leverage adds financial risk, although 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
	EBIT
-2.41B	655.18M	1.06B	1.62B	1.19B
	EBITDA
-1.84B	1.25B	1.61B	1.80B	1.33B
	Net Income Common Stockholders
-2.26B	140.20M	521.03M	1.17B	750.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.66B	2.92B	2.35B	2.62B	2.54B
	Total Assets
11.48B	14.22B	14.24B	9.80B	7.77B
	Total Debt
4.08B	5.03B	5.64B	2.58B	2.21B
	Net Debt
1.44B	2.67B	4.00B	-40.47M	-328.89M
	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: Neutral
• Last Price: 2.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 2.14 is above the 20-day moving average (MA) of 2.10, above the 50-day MA of 2.06, and below the 200-day MA of 2.14, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 51.67 is Neutral, neither overbought nor oversold. The STOCH value of 56.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
1268	52 Neutral	$3.10B	40.67	-56.58%	0.41%	-23.89%	-1698.95%
CYYHF		$542.55M	19.75	1.44%	0.93%	―	―
CZASF		$188.84M	―		―	―	―
HA5		€100.02M	―	-5.36%	6.82%	―	―
0881	67 Neutral	HK$30.78B	8.71	6.95%	6.25%	-7.86%	-36.99%
1872	51 Neutral	HK$2.26B	35.25	-4.62%	―	5.65%	-209.76%

China MeiDong Auto Holdings Corporate Events

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.

China MeiDong Auto Holdings Announces 2025 AGM and Key Resolutions

China MeiDong Auto Holdings Limited has announced its upcoming annual general meeting scheduled for May 20, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the 2024 financial statements, the re-election of executive directors Mr. Ye Tao and Ms. Luo Liuyu, and the reappointment of KPMG as auditors. Additionally, the meeting will consider authorizing the board to issue new shares, potentially impacting the company’s capital structure and shareholder value.

China MeiDong Auto Reschedules AGM and Book Closure Period

China MeiDong Auto Holdings Limited has announced a change in the date of its Annual General Meeting (AGM) and the book closure period. Originally scheduled for May 14, 2025, the AGM will now take place on May 20, 2025, due to administrative reasons. The book closure period for determining shareholder eligibility to attend and vote at the AGM will be from May 15 to May 20, 2025. All other information in the previous announcement remains unchanged.

China MeiDong Auto Holdings Declares Final Dividend for 2024

China MeiDong Auto Holdings Limited has announced a final ordinary dividend of RMB 0.0445 per share for the financial year ending December 31, 2024. The dividend is subject to shareholder approval on May 14, 2025, with the payment date set for August 27, 2025. This announcement reflects the company’s financial health and commitment to returning value to its shareholders, potentially strengthening its position in the automotive industry and impacting investor confidence.

China MeiDong Auto Holdings Reports Financial Loss for 2024

China MeiDong Auto Holdings Limited reported a significant financial downturn for the year ended December 31, 2024, with a revenue of RMB22,154.0 million but a substantial loss of RMB2,258.8 million. The loss was primarily due to a non-cash impairment of goodwill and intangible assets amounting to RMB2,911.0 million, alongside other amortized costs. Despite these challenges, the company proposed a final dividend of RMB0.0445 per ordinary share, indicating a commitment to returning value to shareholders.

China MeiDong Auto Holdings Announces Board Meeting to Discuss Annual Results

China MeiDong Auto Holdings Limited has announced that its board of directors will meet on March 26, 2025, to discuss the company’s annual results for the year ending December 31, 2024, and to consider the payment of a final dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting stakeholders’ expectations and the company’s market positioning.