The revenue was 175.9 billion, and the market value was only 13.9 billion. Why was Beijing Automobile "abandoned" by capital?

Beijing Automobile is gone on a new low road.

Recently, the stock price of Beijing Automobile has reached a record low. With the fundamental changes that have not changed the fundamentals, Beijing Automobile has fallen from the high point of HK $ 11.774/share in 2018 to the current HK $ 1.92/share. 83%, the market value evaporated 79 billion Hong Kong dollars.

So why is Beijing car "abandoned" by capital? Holding the ace of "Beijing Mercedes", how did Beijing Automobile break the cards with good cards? Will Beijing Automobile be available in A shares in the future?

According to data, Beijing Automobile has four businesses, which are Beijing -Benz, Fujian Mercedes, Beijing Hyundai and Beijing independent brands. Earlier, Beijing Automobile had released a 2022 interim report. According to the interim report, in the first half of this year, Beijing Automobile achieved revenue of 83.679 billion yuan, a year -on -year decrease of 7.41%; the net profit attributable to the company's equity holders was 2.158 billion yuan, A year -on -year decline of 21.75%.

At first glance, the performance of Beijing Automobile is not very good, but compared to other car manufacturers, Beijing Automobile's performance is remarkable. If it is divided according to the sector, in the first half of this year, Beijing Benz's revenue was 81.474 billion yuan, and the revenue of the Beijing brand was 2.263 billion yuan. Only 2.63%of the company's revenue.

Not only that, the independent Beijing brand, which has been losing money for many years, has also become the main factor in dragging the company's net profit. According to statistics, since 2020, Beijing Automobile has received a total of 5 research reports. These 5 research reports have come from the same brokerage firms, and the target price has been reduced from HK $ 3.88 to HK $ 2.7.

Secondly, as the target company of the Hong Kong Stock Connect and the entire vehicle manufacturing company, the market's attention to it is too low. Since the fire of the new energy vehicle in 2020, almost all the vehicle companies listed on A shares have risen, but on the other hand, Beijing cars have fallen all the way. So why is this situation? Seeing Finance:

First, most of the domestic vehicle manufacturing companies will choose to move closer to the direction of new energy manufacturing, while Beijing Automobile does not have relevant news. Some time ago, market rumors intended to cooperate with Xiaomi to build cars. Both listed companies have risen, of which Beijing Automobile rose 25.6%, but the news was quickly rumored, and Beijing Automobile currently reached a record low.

Second, Beijing Automobile's dependence on Beijing Benz is too serious. More than 95%of its revenue comes from Beijing Benz. The loss of losses for independent brands is also a major challenge for Beijing Automobile in the future.

Third, it is not available in A shares. From the perspective of revenue, when Beijing Automobile was listed in Hong Kong in 2014, the revenue was only 56.3 billion yuan, and in 2021, its revenue reached 175.9 billion yuan. What's more ironic is that when the listing price was 8.9 Hong Kong dollars, the current price of Beijing Automobile was only HK $ 1.92, and the market value was only HK $ 15.389 billion, equivalent to less than 13.9 billion yuan.

In summary, I think Beijing Automobile has been seriously underestimated. In order to increase the investment value of Beijing Automobile, it should:

First, start a certain amount of repurchase. According to its financial report, the net cash generated by Beijing Automobile's business activities rose from 4.26 billion yuan in the same period last year to 9.059 billion yuan in the first half of this year, an increase of 112.7%year -on -year. In addition, as of June 30, 2022, the balance of Beijing's auto book cash and cash equivalent at the end of the period was 38.624 billion, which was much higher than the company's market value. Therefore, from this perspective, BAIC should repurchase to boost the stock price;

Second, start the plan to return to the A -share listing. At present, the dynamic price -earnings ratio of Beijing Automobile is only 3.91 times, and the net ratio is only 0.25 times. The daily turnover is less than 20 million Hong Kong dollars. From the perspective of brand management, the long -term downturn stock price is very unfavorable to the company's financing and the capital market's awareness of the company. Compared with SAIC Group and GAC Group, the "gap" between BAIC Group and it is very obvious.

Therefore, no matter from which perspective, BAIC's management should also pay attention to the company's brand construction, whether it is a product or the capital market.

- END -