China ZhengTong Auto Services Holdings Ltd (1728) Fair Value & Analysis
Consumer Cyclical · HK · Market cap HK$1.4B
Fair value as of: Aug 13, 2026
From 2 valuation models · updated 3 days ago
Below-average quality, and screening another 52% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (HK$0.0850). The favourable scenario is already priced in.
- Weak quality (19/100) and above fair value at the same time, the margin of safety is missing on both counts.
- The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range HK$0.0580 – HK$1.30 · fair‑value band HK$0.0510 – HK$0.0850 · the HK$0.1430 price screens above the HK$0.0680 fair value. Dashed = 300-day average. As of Aug 13, 2026.
Analysis
China ZhengTong Auto Services Holdings Ltd (1728) currently trades at HK$0.1430, while our model-based Fair Value estimate is HK$0.0680, implying the stock looks roughly 52.5% overvalued today. The Quality Score stands at 19/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).
Over the trailing twelve months, China ZhengTong Auto Services Holdings Ltd generated revenue of HK$18.7B at a net margin of -13.8%. Revenue declined 9.7% year over year. Net debt stands at HK$16.7B. Fundamentals as of Aug 13, 2026
Our scenario range runs from HK$0.0510 (bear case) to HK$0.0850 (bull case); at HK$0.1430, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -5% fair-value upside, at -52%, 1728 screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 2 models by family
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 20 · Market factors (momentum, volatility) 50
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
China ZhengTong Auto Services Holdings Limited engages in the 4S dealership business in the People's Republic of China and internationally. It operates in three segments: 4S Dealership Business, Supply Chain Business, and Comprehensive Properties Business.
Full company description
China ZhengTong Auto Services Holdings Limited engages in the 4S dealership business in the People's Republic of China and internationally. It operates in three segments: 4S Dealership Business, Supply Chain Business, and Comprehensive Properties Business. The company is involved in the sale of passenger motor vehicles; related mortgage facilitation services; after-sales services; motor-related logistics services; and the development and sale of properties. It also engages in the sale of automobile parts; property management; automobile maintenance services; financial services; insurance agency; consulting; and secondhand automobile trading services. The company offers its products under the Porsche, Mercedes-Benz, BMW, Audi, Jaguar Land Rover, Cadillac, FAW Volkswagen, FAW Toyota, Buick, and Dongfeng-Honda brands, as well as independent brands, such as Hongqi and GWM Haval; and energy vehicle sector brands, including AITO, LUXEED, STELATO, MAEXTRO, SAIC, Tesla, and NIO. The company was founded in 1999 and is headquartered in Xiamen, the People's Republic of China. China ZhengTong Auto Services Holdings Limited operates as a subsidiary of Xinda Motors Co., Limited.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
China ZhengTong Auto Services Holdings Ltd reported revenue of HK$18.2B in FY2025 versus HK$21.0B in FY2021, a compound −3.5%/yr. Reported net income was −HK$2.5B in FY2025.
1728 screens 52% overvalued. Compare with Carvana Co →
Peer Group
Auto & Truck Dealerships · 103 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Auto & Truck Dealerships median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Auto & Truck Dealerships stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Carvana Co CVNA | $72.48 | $24.58 | -66% |
| Penske Automotive Group PAG | $218.00 | $217.41 | -0% |
| D'Ieteren Group DIE | €175.00 | €105.40 | -40% |
| Hotai Motor Co 2207 | 524.00 TWD | 558.82 TWD | +7% |
| CarMax, Inc KMX | $58.71 | $29.44 | -50% |
| Lithia Motors, Inc LAD | $378.55 | $498.50 | +32% |
| AutoNation, Inc AN | $208.62 | $329.77 | +58% |
| Rush Enterprises, Inc RUSHA | $80.63 | $66.27 | -18% |
| Valvoline Inc VVV | $33.30 | $24.55 | -26% |
| OPENLANE, Inc OPLN | $35.33 | $33.46 | -5% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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