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China MeiDong Auto Holdings
(1268)
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Rating:44Neutral
Price Target:
HK$0.28
▼(-26.05% Downside)
Action:Reiterated
Date:08/27/26
The score is primarily constrained by weak financial performance: ongoing losses, compressed margins, higher leverage, and negative operating/free cash flow in 2025. Technicals also remain pressured with the price below key longer-term moving averages and a negative MACD. A very high dividend yield provides some support, but the negative P/E and cash-flow volatility limit valuation confidence.
Positive Factors
Recurring After-Sales Revenue
The installed base of vehicles creates an ongoing opportunity for maintenance, repairs, labor, and parts revenue after the initial sale. Repeat servicing can make the business less dependent on continuously generating new-car transactions and provide a durable customer relationship channel.
Negative Factors
Revenue Contraction and Compressed Margins
Declining revenue and substantially lower margins point to weaker operating economics than in the company’s earlier 2020–2022 period. Continued pressure would reduce profit conversion, limit reinvestment capacity, and make earnings more sensitive to changes in vehicle demand and dealership costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring After-Sales Revenue
The installed base of vehicles creates an ongoing opportunity for maintenance, repairs, labor, and parts revenue after the initial sale. Repeat servicing can make the business less dependent on continuously generating new-car transactions and provide a durable customer relationship channel.
Read all positive factors
China MeiDong Auto Holdings (1268) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$417.34M
Dividend Yield13.56%
Average Volume (3M)2.61M
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth-17.65%
EPS Growth92.47%
CountryHK
Employees3,763
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-0.57
Shares Outstanding1,346,247,200
10 Day Avg. Volume2,903,717
30 Day Avg. Volume2,613,845
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.76
Price to Sales (P/S)0.08
P/FCF Ratio-2.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$0.65Price Target Upside71.05% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)-0.15
Revenue Forecast (FY)HK$14.77B
China MeiDong Auto Holdings Business Overview & Revenue Model
Company Description
As an investment holding company, China MeiDong Auto Holdings Limited operates as a leading automobile dealership group throughout the People's Republic of China. Its primary activities include the retail of new passenger vehicles and their corres...
How the Company Makes Money
The company makes money mainly through dealership operations tied to its franchised premium-brand stores. Its key revenue streams typically include: (1) New vehicle sales: Revenue is generated from selling new passenger vehicles to retail and, whe...
China MeiDong Auto Holdings Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
34
Negative
Cash Flow
31
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.02B | 22.15B | 28.55B | 28.65B | 23.58B |
| Gross Profit | 1.15B | 1.56B | 2.08B | 2.52B | 2.77B |
| EBITDA | 452.43M | -1.84B | 1.25B | 1.61B | 1.80B |
| Net Income | -754.99M | -2.26B | 140.20M | 521.03M | 1.17B |
Balance Sheet | |||||
| Total Assets | 7.52B | 11.48B | 14.22B | 14.24B | 9.80B |
| Cash, Cash Equivalents and Short-Term Investments | 2.02B | 2.66B | 2.92B | 2.35B | 2.62B |
| Total Debt | 4.05B | 4.08B | 5.03B | 5.64B | 2.58B |
| Total Liabilities | 5.38B | 8.52B | 8.93B | 9.81B | 5.69B |
| Stockholders Equity | 2.02B | 2.83B | 5.15B | 4.28B | 3.95B |
Cash Flow | |||||
| Free Cash Flow | -665.79M | 753.74M | 469.06M | 870.43M | 1.45B |
| Operating Cash Flow | -528.10M | 864.65M | 816.79M | 1.15B | 1.81B |
| Investing Cash Flow | -261.06M | 730.47M | 156.80M | -3.48B | -1.38B |
| Financing Cash Flow | -2.06B | -1.31B | -250.29M | 1.33B | -317.49M |
China MeiDong Auto Holdings Technical Analysis
Negative
0.38
Price Trends
0.38
Negative
0.55
Negative
0.93
Negative
Market Momentum
-0.02
Negative
35.84
Neutral
4.25
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 0.38 is above the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.38, and below the 200-day MA of 0.93, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 35.84 is Neutral, neither overbought nor oversold. The STOCH value of 4.25 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
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% | |
54 Neutral | HK$1.54B | -0.73 | -20.16% | 18.77% | -16.05% | 45.22% | |
49 Neutral | HK$957.56M | -55.84 | -1.49% | ― | -41.33% | -148.34% | |
48 Neutral | HK$7.93B | -2.53 | -5.77% | 20.39% | -5.03% | -198.49% | |
44 Neutral | HK$417.34M | -1.59 | -11.37% | 13.56% | -17.65% | 92.47% | |
44 Neutral | HK$1.43B | -0.45 | 58.35% | 9.34% | 1.77% | 45.42% | |
42 Neutral | HK$760.90M | -1.06 | -13.15% | 7.71% | 31.42% | -181.28% |
* Consumer Cyclical Sector Average
HK:1268
China MeiDong Auto Holdings
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China MeiDong Auto Holdings Corporate Events
China MeiDong Auto Swings to Smaller Loss as Revenue Slides but Cash Flow Improves
Aug 26, 2026
China MeiDong Auto Holdings Limited, a mainland China-focused auto dealer listed in Hong Kong, reported sharply weaker interim results for the six months ended 30 June 2026. The group, which derives its revenue mainly from new car sales and associ...
China MeiDong Auto Sets Board Meeting to Review Interim Results and Dividend
Aug 14, 2026
China MeiDong Auto Holdings has scheduled a board meeting for August 26, 2026, to review the interim results for the six months ended June 30, 2026. The directors will also consider declaring an interim dividend, a decision that could signal manag...
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.