China MeiDong Auto Holdings Limited (“MeiDong Auto”, 1268.HK) is a premier luxury auto dealership group, focusing on serving luxury auto consumers in lower tier cities in China. Since it went public in 2013, MeiDong Auto has enjoyed a compounding growth of 29.2% in sales and 31.1% in profit, and has paid out 45% of its profit as dividend. MeiDong has relied on mostly internally generated cash flow to fund its high growth and dividend paidout.
Meidong Auto works with luxury brands such as Porsche, BMW/Mini, Lexus and mid-to-high end brands like Toyota and Hyundai. We operate 58 4S auto stores in 39 cities, many of which are 3rd to 5th tier cities.
We focus on asset and capital efficiency. We strive for fast inventory turns, and high ROE and ROA. We keep a healthy balance sheet with net cash position, and have generated sufficient operating cash flow to fund our growth and dividend payout.
Our culture is Simple, Direct, and Data Driven.