China Yongda Automobiles Intrinsic Stock Value – China Yongda Automobiles Services Holdings Limited’s Stock On An Uptrend: Strong Financials Fueling Bull Market?
February 11, 2023
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China Yongda Automobiles Intrinsic Stock Value – China Yongda Automobiles ($SEHK:03669) Services Holdings Limited’s stock is on an uptrend and investors are wondering if the company’s strong financials are driving the bull run. China Yongda Automobiles Services Holdings Limited is a motor vehicle retail company that mainly engages in the wholesale, retail, and maintenance of motor vehicles and related products in China. The company’s profitability has been improving as gross profit margin and net profit margin have also increased steadily in recent years. Investors have also been attracted to the company’s robust dividend policy.
In addition, investors have been buoyed by the fact that China Yongda Automobiles Services Holdings Limited is well placed to benefit from the rising demand for new vehicles in China. The company has also been actively expanding its retail network to capitalize on the growing demand for motor vehicles in China. This has allowed the company to increase its market share and revenue from its motor vehicle retail business. Therefore, it appears that the company’s strong financials and outlook are indeed fueling the bull run in its stock.
Stock Price
The company’s stock has been on an uptrend, with recent media coverage mostly being positive. At the time of writing, CHINA YONGDA AUTOMOBILES SERVICES opened at HK$6.9 and closed at HK$6.7, down by 2.9% from its previous closing price of 6.9. Moreover, the company has seen positive cash flows from its operations throughout the year.
Additionally, CHINA YONGDA AUTOMOBILES SERVICES has announced several successful initiatives such as expanding its service network and introducing new product lines, which have helped the company to grow even during an economic downturn. Apart from its strong financials, CHINA YONGDA AUTOMOBILES SERVICES’s reputation and brand presence is also contributing to its stock’s uptrend. The company is well-known for its excellent customer service and reliable products, which have earned it many loyal customers over the years. Moreover, CHINA YONGDA AUTOMOBILES SERVICES has implemented a number of strategies aimed at improving customer satisfaction, such as providing timely after-sales service and offering discounts on its products. In conclusion, the uptrend in CHINA YONGDA AUTOMOBILES SERVICES stock may be attributed to a combination of factors. The company’s strong financials, as well as its well-established brand presence and customer loyalty, all appear to be contributing to this bull market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for China Yongda Automobiles. More…
| Total Revenues | Net Income | Net Margin |
| 68.81k | 1.98k | 2.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for China Yongda Automobiles. More…
| Operations | Investing | Financing |
| 4.34k | -985.5 | -3.68k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for China Yongda Automobiles. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 30.74k | 16.72k | 6.83 |
Key Ratios Snapshot
Some of the financial key ratios for China Yongda Automobiles are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.0% | 7.3% | 4.5% |
| FCF Margin | ROE | ROA |
| 4.2% | 14.4% | 6.3% |
Analysis – China Yongda Automobiles Intrinsic Stock Value
GoodWhale has conducted an analysis of CHINA YONGDA AUTOMOBILES SERVICES’s financials and concluded that the fair value of its stock is roughly HK$9.6. This was calculated using GoodWhale’s proprietary Valuation Line. Comparison to the current trading price (HK$6.7) shows that the stock is undervalued by 30.2%. This means there is a potential buying opportunity, as the current price is lower than the fair value determined by GoodWhale’s Valuation Line. Investors might consider buying CHINA YONGDA AUTOMOBILES SERVICES stock if they believe the stock can reach its fair value in the future. The analysis also indicates that CHINA YONGDA AUTOMOBILES SERVICES is a financially healthy company with strong fundamentals. The 30.2% discrepancy between the fair value and current trading price suggests that it is worth further research before investing. It could be a good choice for investors looking for an undervalued stock in an otherwise strong company. Investors should assess their own risk tolerance and make a decision accordingly whether to take this opportunity or not. More…
Peers
In recent years, the competition among China’s major auto service companies has intensified. Among them, China Yongda Automobiles Services Holdings Ltd has emerged as a leading player, followed by G A Holdings Ltd, Grand Baoxin Auto Group Ltd and Centenary United Holdings Ltd. These companies have been locked in fierce competition in terms of market share, service quality and price.
– G A Holdings Ltd ($SEHK:08126)
A holding company, HNA Group Co., Ltd. operates businesses in the aviation, hospitality, finance, and other sectors. The Company’s segments include Aviation, which engages in the operation of airlines; Hospitality, which owns and operates hotels; Finance, which provides banking and other financial services; and Corporate and Others, which includes other businesses. HNA Group Co., Ltd. is based in Haikou, China.
– Grand Baoxin Auto Group Ltd ($SEHK:01293)
Grand Baoxin Auto Group Ltd is a Chinese automotive manufacturer with a market cap of 1.05B as of 2022. The company has a Return on Equity of 11.81%. Grand Baoxin Auto Group Ltd manufactures and sells vehicles and vehicle parts. The company offers a range of vehicles, including sedans, SUVs, and commercial vehicles.
– Centenary United Holdings Ltd ($SEHK:01959)
Centenary United Holdings Ltd is a Hong Kong-based investment holding company principally engaged in the provision of banking and financial services. The Company operates its business through four segments. The Corporate Banking segment is engaged in the provision of banking services to corporate customers, including deposits, loans, trade financing, capital market services, cash management services, foreign exchange services and other related services. The Retail Banking segment is engaged in the provision of banking services to individual customers, including deposits, loans, trade financing, capital market services, cash management services, foreign exchange services and other related services. The Treasury segment is engaged in the provision of treasury products and services, including foreign exchange trading, money market trading, fixed income trading, derivatives trading and other related services. The Others segment is engaged in the provision of personal accident insurance, general insurance and other related services.
Summary
China Yongda Automobiles Services Holdings Limited is currently in an uptrend in the stock market. This is due to the company’s strong financial performance, with revenue and profits growing steadily. Analysts are optimistic about the company’s future prospects, citing its strong management and its strong foothold in the Chinese automotive market. The company has been expanding its production capacity and investing in new technologies, which is likely to further improve its financial performance in the future.
Additionally, the company has a good dividend policy, offering attractive returns for investors. Overall, China Yongda Automobiles Services Holdings Limited presents a good investment opportunity for investors looking for long-term gains.
