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    Assessing XXF Group Holdings (SEHK:2473)’s Valuation After Its Strategic Unmanned Vehicle Deal With Neolix Technologies

    Simply Wall St·12/19/2025 09:19:17
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    XXF Group Holdings (SEHK:2473) just moved beyond traditional auto retail by signing a long term strategic cooperation agreement with Neolix Technologies to build an unmanned vehicle services business across selected Chinese cities.

    See our latest analysis for XXF Group Holdings.

    That push into unmanned vehicle services comes after a big run, with an 84.72% year to date share price return and 85.93% one year total shareholder return, suggesting momentum is rebuilding despite a weaker 90 day share price performance.

    If this shift in XXF’s story has your attention, it might be a good moment to explore other listed auto names via auto manufacturers for fresh ideas.

    With the share price already surging on excitement around unmanned vehicles and no clear valuation anchor from analyst targets or intrinsic models, the question is whether upside still remains or if markets already price in future growth.

    Price-to-Sales of 9.3x: Is it justified?

    On a last close of HK$8.46, XXF Group Holdings trades at a steep premium to both its industry and peer group on a price to sales basis.

    The price to sales multiple compares a company’s market value with its revenue, making it a useful lens for auto retailers where profits can be cyclical but sales volumes more stable. At 9.3 times sales, investors are effectively paying several years of current revenue upfront, which implies confidence that future growth, margins or both will improve meaningfully from here.

    However, that optimism sits uncomfortably alongside recent fundamentals, including a net profit margin that has roughly halved over the past year and earnings that declined sharply. Against this backdrop, a 9.3 times sales tag looks aggressive rather than conservative, suggesting the market is banking on the Neolix partnership and other initiatives to reignite growth and profitability.

    Compared with the Hong Kong Specialty Retail industry average of about 0.6 times sales and a peer average of roughly 0.7 times, XXF’s 9.3 times multiple is in a different league entirely, signaling that the stock is priced for a markedly superior trajectory, not just a modest beat.

    See what the numbers say about this price — find out in our valuation breakdown.

    Result: Price-to-Sales of 9.3x (OVERVALUED)

    However, investor enthusiasm could fade if the Neolix rollout disappoints or if weaker margins persist, highlighting execution and profitability risk at current valuations.

    Find out about the key risks to this XXF Group Holdings narrative.

    Build Your Own XXF Group Holdings Narrative

    If you want to dig into the numbers yourself and frame the story differently, you can build a personalised view in just a few minutes: Do it your way.

    A great starting point for your XXF Group Holdings research is our analysis highlighting 2 important warning signs that could impact your investment decision.

    Ready for more high conviction ideas?

    XXF might be compelling, but you can give yourself an additional edge by scanning fresh opportunities with targeted screeners before this momentum cycle moves on.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.