Risk factor
Good trading liquidity
Profitability factor
Undervalued vs peers
About
Operating as an investment holding firm, Zhongsheng Group Holdings Limited primarily engages in the retail and servicing of motor vehicles. The company operates an extensive network of 4S dealerships, representing a broad spectrum of automotive brands. This encompasses luxury marques such as Mercedes-Benz, Lexus, Audi, Jaguar, Land Rover, Porsche, and Volvo, as well as popular mid-to-high-end brands including Toyota and Nissan. Beyond vehicle sales, the group provides a full range of after-market services, offering spare parts, vehicle accessories, repair and maintenance work, detailing services, and various other car-related products. As of December 31, 2021, Zhongsheng Group managed 412 automobile dealerships across the People's Republic of China, with 254 dedicated to luxury brands and 158 to mid-to-high-end brands. These operations reached approximately 110 cities within 25 provinces, municipalities, and autonomous regions. Founded in 1998, Zhongsheng Group Holdings Limited maintains its corporate headquarters in Dalian, People's Republic of China.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is underpriced on P/E, of fair value on EV/EBITDA
Target Price
The average target price of 0881.HK is 11.2 and suggests 136% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to in