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China Zhengtong Auto Services Holdings
(1728)
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Rating:42Neutral
Price Target:
HK$0.14
â–¼(-2.14% Downside)
Action:Reiterated
Date:10/01/26
The score is driven down primarily by very weak financial performance (renewed large losses, declining revenue, negative equity, and persistently negative free cash flow). Technicals are neutral-to-weak with a flat trend and volatility risk, while valuation is also pressured due to loss-making results and no dividend yield data.
Positive Factors
Diversified dealership model
The company operates across vehicle retailing, workshop services, parts, accessories, and other auto-related activities. This creates multiple revenue channels within one customer relationship and reduces reliance on a single dealership offering, although current financial results remain weak.
Negative Factors
Negative equity and high debt
Negative equity means liabilities exceed assets attributable to shareholders, materially reducing financial flexibility. Debt of roughly 21B leaves the company sensitive to refinancing and solvency pressures, while the lack of sustainable profitability makes the existing leverage harder to support.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified dealership model
The company operates across vehicle retailing, workshop services, parts, accessories, and other auto-related activities. This creates multiple revenue channels within one customer relationship and reduces reliance on a single dealership offering, although current financial results remain weak.
Read all positive factors
China Zhengtong Auto Services Holdings (1728) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.43B
Dividend Yield9.34%
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth1.77%
EPS Growth45.42%
CountryHK
Employees5,220
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 | 355.20M | 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 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% | |
50 Neutral | HK$5.88B | -1.94 | -5.77% | 27.51% | -5.03% | -198.49% | |
48 Neutral | HK$874.30M | -54.50 | -1.49% | ― | -41.33% | -148.34% | |
45 Neutral | HK$491.38M | -2.00 | -11.37% | 10.76% | -17.65% | 92.47% | |
44 Neutral | HK$1.41B | -0.68 | -20.16% | 20.55% | -16.05% | 45.22% | |
42 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:1728
China Zhengtong Auto Services Holdings
0.14
0.00
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China Zhengtong Auto Services Holdings Corporate Events
China ZhengTong Auto Presses Ahead With Restructuring as Share Suspension Continues
Sep 30, 2026
China ZhengTong Auto Services Holdings Limited operates 4S automobile dealerships, automotive supply chain services and a comprehensive properties business in mainland China. The group focuses on mid-to-high-end automotive brands and is accelerati...
China ZhengTong Auto Services Further Extends Deadline for Share Placing
Sep 30, 2026
China ZhengTong Auto Services Holdings Limited, a Cayman Islands-incorporated automotive services company listed in Hong Kong, operates in the vehicle services segment and uses equity placements as part of its financing strategy. The firm is overs...
China ZhengTong Extends Deadline for New Share Placing
Aug 31, 2026
China ZhengTong Auto Services Holdings Limited has announced an extension of the long stop date for its planned placing of new shares under a specific mandate. The company and its sole placing agent have pushed the deadline from 31 August 2026 to ...
China Zhengtong Auto Posts Deeper Loss, Moves to Raise Capital Amid Restructuring
Aug 28, 2026
China Zhengtong Auto Services reported significantly weaker interim results for the six months to 30 June 2026, as China’s car market shifted toward replacement demand and new energy vehicles, and the group faced falling new car volumes and ...
China ZhengTong Warns of Wider Interim Loss Amid Auto Market Headwinds
Aug 25, 2026
China ZhengTong Auto Services Holdings Limited has warned that its net loss for the six months ended 30 June 2026 is expected to increase by about 17% compared with restated figures for the same period in 2025. The deterioration is mainly attribut...
China ZhengTong Auto Schedules Board Meeting to Review Interim Results and Dividend
Aug 18, 2026
China ZhengTong Auto Services Holdings Limited has scheduled a board meeting for 28 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider whether to declare an interim dividend an...
China ZhengTong Shareholders Approve Major Share Placing Mandate
Aug 10, 2026
Shareholders of China ZhengTong Auto Services Holdings Limited have approved an ordinary resolution at an extraordinary general meeting held on 10 August 2026, backing a placing agreement with Fortune (HK) Securities Limited. The deal allows for t...
China ZhengTong Cuts Final Price for Xindeco Auto Dealership Acquisition
Jul 22, 2026
China ZhengTong Auto Services Holdings Limited has updated the market on its previously announced acquisition of Xiamen Xindeco’s 4S dealership and automobile sales and export business in China and Thailand. The transaction involves Xindeco ...
China Zhengtong Calls EGM to Approve Major Share Placement
Jul 22, 2026
China Zhengtong Auto Services Holdings has called an extraordinary general meeting for 10 August 2026 in Xiamen, Fujian, to seek shareholder approval for a major share placement. The board is asking investors to endorse a placing agreement with Fo...
China Zhengtong Sets One-Year Connected Property Lease Deal With Controlling Shareholder
Jul 16, 2026
China ZhengTong Auto Services Holdings has entered into a one-year Property Lease and Services Framework Agreement with its controlling shareholder ITG Holding, effective from 16 July 2026 to 15 July 2027. The deal covers the leasing of properties...
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.