China Meidong Auto Intrinsic Value Calculation – Investors Could Be Missing Out on 21% Upside in China MeiDong Auto Holdings Limited (2023)
March 21, 2023
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China ($SEHK:01268) MeiDong Auto Holdings Limited (2023) is an attractive investment opportunity due to its low share price of HK$15.24 which is 21% lower than its fair value estimate of HK$19.35. The fair value was calculated using the 2 Stage Free Cash Flow to Equity model, a reliable method for estimating the intrinsic value of a company. Investors could potentially benefit from this discrepancy between the share price and the fair value, as there is an upside potential of 21%. This indicates that the company is currently undervalued, suggesting that investors may be missing out on an attractive opportunity. Furthermore, this could indicate that the stock is currently undervalued and investors could benefit from increased long-term returns. It has a strong balance sheet and a high-quality management team, both of which are indicators of long-term success.
Additionally, the company is well positioned to take advantage of the rapidly growing Chinese automotive market. Given the current share price and fair value estimate of China MeiDong Auto Holdings Limited, investors should consider whether this could be an attractive investment opportunity and assess the potential upside of 21%.
Price History
At the time of writing, news sentiment towards China MeiDong Auto Holdings Limited (2023) was mostly negative. On Monday, CHINA MEIDONG AUTO stock opened at HK$15.0 and closed at HK$15.4, representing a 1.2% increase from its prior closing price of 15.2. This signals that investors may be beginning to recognize the potential upside in the company’s stock. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for China Meidong Auto. More…
| Total Revenues | Net Income | Net Margin |
| 24.43k | 972.34 | 3.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for China Meidong Auto. More…
| Operations | Investing | Financing |
| 1.76k | -3.31k | 2.28k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for China Meidong Auto. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.61k | 12.14k | 3.36 |
Key Ratios Snapshot
Some of the financial key ratios for China Meidong Auto are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 21.7% | 39.2% | 6.6% |
| FCF Margin | ROE | ROA |
| 6.0% | 24.6% | 6.1% |
Analysis – China Meidong Auto Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of CHINA MEIDONG AUTO’s wellbeing. According to our proprietary Valuation Line, the intrinsic value of CHINA MEIDONG AUTO’s share is estimated to be around HK$27.1. However, the stock is currently trading at HK$15.4, which is 43.1% below its intrinsic value. Therefore, we believe CHINA MEIDONG AUTO’s current market price may represent an opportunity for investors looking for undervalued stocks in the Chinese automotive industry. More…
Peers
China MeiDong Auto Holdings Ltd is one of the leading players in the automotive industry, with a long-standing history of competition with its major rivals Sunfonda Group Holdings Ltd, China Harmony Auto Holding Ltd, and Jiuzi Holdings Inc. All of these companies have established themselves as formidable contenders in the market and are constantly pushing each other to reach higher standards of quality and innovation. With this intense competition, China MeiDong Auto Holdings Ltd is always striving to stay ahead of the curve and remain a leader in the industry.
– Sunfonda Group Holdings Ltd ($SEHK:01771)
Sunfonda Group Holdings Ltd is a diversified investment holding company with operations in many countries. The company has a market cap of 750M as of 2022, making it one of the largest companies in the industry. Sunfonda Group Holdings Ltd has a Return on Equity of 9.96%, which is well above the industry average and indicates that the company is generating strong returns on its investments. The company’s diversified business model has enabled it to generate strong returns and remain competitive despite the challenging economic conditions in many parts of the world. Sunfonda Group Holdings Ltd is well positioned to continue to generate strong returns for its shareholders in the future.
– China Harmony Auto Holding Ltd ($SEHK:03836)
Harmony Auto Holding Ltd is a Chinese automotive manufacturer that specializes in the production of cars, buses and passenger vehicles. As of 2022, the company has a market cap of 2.07B and a Return on Equity of -2.36%. Market capitalization is a measure of the value of a company and is calculated by multiplying the price of a stock by its total number of outstanding shares. A negative Return on Equity indicates that the company is not generating enough income to cover its expenses. The company’s financial performance has been volatile over the past few years, with the market cap fluctuating between 1B and 2.5B. Despite this, Harmony Auto Holding Ltd remains a major player in the Chinese automotive market and is well positioned to take advantage of any growth opportunities that arise in the coming years.
– Jiuzi Holdings Inc ($NASDAQ:JZXN)
Jiuzi Holdings Inc is a Chinese technology company that specializes in mobile internet and digital entertainment services. As of 2022, the company has an estimated market cap of 3.86M and a Return on Equity (ROE) of 10.55%. This market cap puts Jiuzi Holdings Inc as one of the smaller players in the industry, but with a healthy ROE, the company is still performing well. The company’s focus on mobile internet and digital entertainment services indicates that it is well-positioned to capitalize on the growing demand for digital services.
Summary
The current share price of the company is undervalued, according to analysis, with 21% upside potential. At the time of writing, news sentiment appears to be mostly negative.
However, it is important to note that macroeconomic factors could be playing a role here, as the automotive industry has been volatile in recent years. Investors should consider researching the company further, to understand its long-term prospects and prospects in the short term, before deciding to invest. This could include looking into areas such as financial performance, product innovation, growth plans, and competition in the industry. Ultimately, it is important for investors to weigh up the risks and potential rewards of investing in China MeiDong Auto Holdings Limited (2023), before making an informed decision.
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