Financials Zhongsheng Group Holdings Limited

Equities

881 KYG9894K1085

Auto Vehicles, Parts & Service Retailers

Market Closed - Hong Kong S.E. Other stock markets 04:08:20 2024-04-26 am EDT			5-day change	1st Jan Change
14.5 ^HKD	+6.46%		+11.54%	-22.38%

Apr. 22	Renaissance Asia Silk Road Raises Over HK$22 Million from Share Issue	MT
Apr. 11	Beijing, Washington Inflation Reports Blunt Asian Stock Markets	MT

Valuation

Fiscal Period: December	2018	2019	2020	2021	2022	2023	2024	2025
Capitalization ¹	30,958	64,762	106,110	119,642	85,168	32,021	32,021	-
Enterprise Value (EV) ¹	50,938	87,770	126,002	137,189	103,977	40,505	41,188	36,811
P/E ratio	8.74 x	14.8 x	19.7 x	14.3 x	13.1 x	8.16 x	6.02 x	5.29 x
Yield	2.35%	1.4%	1.05%	1.39%	2.74%	5.41%	5.83%	6.76%
Capitalization / Revenue	0.29 x	0.52 x	0.72 x	0.68 x	0.47 x	0.23 x	0.18 x	0.18 x
EV / Revenue	0.47 x	0.71 x	0.85 x	0.78 x	0.58 x	0.23 x	0.23 x	0.2 x
EV / EBITDA	6.77 x	9.28 x	11.6 x	9.15 x	7.99 x	3.84 x	3.71 x	3 x
EV / FCF	-34.8 x	14.5 x	20.4 x	-260 x	15.2 x	4.35 x	5.51 x	4.84 x
FCF Yield	-2.87%	6.9%	4.89%	-0.38%	6.57%	23%	18.2%	20.7%
Price to Book	1.7 x	2.98 x	3.99 x	2.88 x	1.95 x	0.7 x	0.65 x	0.6 x
Nbr of stocks (in thousands)	2,271,698	2,271,698	2,281,860	2,415,041	2,401,823	2,385,668	2,385,668	-
Reference price ²	13.63	28.51	46.50	49.54	35.46	13.42	13.42	13.42
Announcement Date	3/22/19	3/20/20	3/19/21	3/17/22	3/23/23	3/27/24	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2018	2019	2020	2021	2022	2023	2024	2025
Net sales ¹	107,736	124,043	148,348	175,103	179,857	179,290	179,535	182,193
EBITDA ¹	7,529	9,457	10,876	14,991	13,020	10,558	11,116	12,281
EBIT ¹	6,428	7,718	8,937	12,617	10,169	8,340	8,715	9,711
Operating Margin	5.97%	6.22%	6.02%	7.21%	5.65%	4.65%	4.85%	5.33%
Earnings before Tax (EBT) ¹	5,201	6,327	7,679	11,504	8,951	6,831	7,244	8,229
Net income ¹	3,637	4,502	5,540	8,329	6,668	5,018	5,331	6,054
Net margin	3.38%	3.63%	3.73%	4.76%	3.71%	2.8%	2.97%	3.32%
EPS ²	1.560	1.920	2.360	3.470	2.710	2.080	2.231	2.536
Free Cash Flow ¹	-1,463	6,057	6,166	-527.7	6,836	8,486	7,476	7,604
FCF margin	-1.36%	4.88%	4.16%	-0.3%	3.8%	4.82%	4.16%	4.17%
FCF Conversion (EBITDA)	-	64.05%	56.69%	-	52.5%	78.56%	67.26%	61.92%
FCF Conversion (Net income)	-	134.55%	111.31%	-	102.53%	161.98%	140.24%	125.61%
Dividend per Share ²	0.3200	0.4000	0.4900	0.6900	0.9700	0.7256	0.7824	0.9068
Announcement Date	3/22/19	3/20/20	3/19/21	3/17/22	3/23/23	3/27/24	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2019 S1	2019 S2	2020 S1	2020 S2	2021 S1	2021 S2	2022 S1	2022 S2	2023 S1	2023 S2	2024 S1	2024 S2
Net sales ¹	57,413	66,630	58,203	90,145	87,361	87,742	86,029	93,828	81,902	97,388	78,102	84,611
EBITDA	-	-	-	-	-	-	-	-	-	-	-	-
EBIT ¹	3,561	4,157	3,802	5,134	5,703	6,914	5,248	4,921	4,768	3,572	3,941	4,685
Operating Margin	6.2%	6.24%	6.53%	5.7%	6.53%	7.88%	6.1%	5.24%	5.82%	3.67%	5.05%	5.54%
Earnings before Tax (EBT)	2,911	-	3,192	4,486	5,109	-	-	4,263	-	-	-	-
Net income	2,082	2,419	2,292	3,248	3,696	4,633	3,425	3,242	3,009	-	-	-
Net margin	3.63%	3.63%	3.94%	3.6%	4.23%	5.28%	3.98%	3.46%	3.67%	-	-	-
EPS	-	-	0.9780	1.382	-	-	-	1.320	-	-	-	-
Dividend per Share	-	-	-	-	-	-	-	-	-	-	-	-
Announcement Date	8/9/19	3/20/20	8/10/20	3/19/21	8/9/21	3/17/22	8/30/22	3/23/23	8/23/23	3/27/24	-	-

¹CNY in Million

Estimates

Balance Sheet Analysis

Fiscal Period: December	2018	2019	2020	2021	2022	2023	2024	2025
Net Debt ¹	19,980	23,008	19,893	17,546	18,809	4,926	9,167	4,790
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	2.654 x	2.433 x	1.829 x	1.17 x	1.445 x	0.456 x	0.8247 x	0.39 x
Free Cash Flow ¹	-1,463	6,057	6,166	-528	6,836	8,487	7,476	7,604
ROE (net income / shareholders' equity)	21.3%	22.5%	23%	25%	15.9%	11.5%	11.1%	11.7%
ROA (Net income/ Total Assets)	6.94%	7.49%	8.42%	10.8%	7.53%	5.96%	5.15%	5.8%
Assets ¹	52,375	60,094	65,763	76,987	88,568	87,861	103,494	104,427
Book Value Per Share ²	8.040	9.580	11.60	17.20	18.20	19.30	20.60	22.50
Cash Flow per Share ²	0.9600	3.210	3.840	4.440	3.490	4.240	5.120	5.190
Capex ¹	3,781	1,743	3,158	11,400	1,949	3,308	2,807	2,855
Capex / Sales	3.51%	1.4%	2.13%	6.51%	1.08%	1.88%	1.56%	1.57%
Announcement Date	3/22/19	3/20/20	3/19/21	3/17/22	3/23/23	3/27/24	-	-

¹CNY in Million²CNY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Zhongsheng Group Holdings Limited

Trading Rating

Investor Rating

ESG Refinitiv

B-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

13.42 CNY

Average target price

17.52 CNY

Spread / Average Target

+30.55%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

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	1st Jan change	Capi.
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TUHU CAR INC.	-17.62%	2.39B
SONIC AUTOMOTIVE, INC.	+10.83%	2.11B
EAGERS AUTOMOTIVE LIMITED	-14.64%	2.09B
DOGUS OTOMOTIV SERVIS VE TICARET	+20.72%	2.04B

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