Should You Be Holding Qingling Motors Co., Ltd. (HKG:1122)?

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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Qingling Motors Co., Ltd. (HKG:1122), it is a highly-regarded dividend payer that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Qingling Motors here.

Flawless balance sheet established dividend payer

1122's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that 1122 has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. 1122 currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

SEHK:1122 Historical Debt, June 26th 2019
SEHK:1122 Historical Debt, June 26th 2019

For those seeking income streams from their portfolio, 1122 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 9.1%, making it one of the best dividend companies in the market.

SEHK:1122 Historical Dividend Yield, June 26th 2019
SEHK:1122 Historical Dividend Yield, June 26th 2019

Next Steps:

For Qingling Motors, I've put together three key aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for 1122’s future growth? Take a look at our free research report of analyst consensus for 1122’s outlook.

  2. Historical Performance: What has 1122's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1122? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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