China Electronics Huada Technology Company Limited (0085) AI Stock Analysis

• Market Cap: HK$2.86B
• Dividend Yield: 7.45%
• Average Volume (3M): 4.56M
• Price to Earnings (P/E): 4.9
• Beta (1Y): 1.16
• Revenue Growth: -22.20%
• EPS Growth: -14.43%
• Country: HK
• Employees: 470
• Sector: Technology
• Sector Strength: 91
• Industry: Semiconductors
• EPS (TTM): 0.29
• Shares Outstanding: 2,029,872,000
• 10 Day Avg. Volume: 5,454,953
• 30 Day Avg. Volume: 4,558,048
• PEG Ratio: 0.18
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: HK$1.50 ▲(7.14%Upside)

The stock's strong valuation metrics are the most significant positive factor, indicating potential undervaluation. However, concerns about declining revenue and cash flow issues weigh down the score. Mixed technical indicators suggest cautious market sentiment.

China Electronics Huada Technology Company Limited Business Overview & Revenue Model

Company Description

China Electronics Huada Technology Company Limited, an investment holding company, engages in the design and sale of integrated circuit chips in the People's Republic of China. Its products are primarily used in second-generation ID cards, social security cards, fuel cards, telecommunication cards, electric cards, transportation cards, wireless networks equipment, etc. The company was formerly known as China Electronics Corporation Holdings Company Limited and changed its name to China Electronics Huada Technology Company Limited in August 2017. The company is based in Wanchai, Hong Kong. China Electronics Huada Technology Company Limited operates as a subsidiary of Huada Semiconductor Co., Ltd.

How the Company Makes Money

China Electronics Huada Technology Company Limited generates revenue through the design, production, and sale of integrated circuits and semiconductor products. The company operates a vertically integrated business model, which allows it to control the entire production process from design to manufacturing. This model enables the company to offer competitive pricing and maintain quality control over its products. Key revenue streams include sales of microcontroller units, memory products, and other semiconductor devices to various industries such as consumer electronics, industrial automation, and automotive sectors. The company may also engage in strategic partnerships and collaborations to enhance its technological capabilities and expand its market reach, although specific partnership details are not provided.

China Electronics Huada Technology Company Limited Financial Statement Overview

Summary

China Electronics Huada Technology shows strong profitability and a stable financial position with low leverage. However, a decline in revenue and absence of cash flow data raise concerns about cash management and future growth potential.

Income Statement

The company's income statement shows a mixed performance. While there is a strong Gross Profit Margin of 48.3% and a positive Net Profit Margin of 25.0% in 2024, the Revenue Growth Rate declined by 22.2% from 2023 to 2024, indicating a potential challenge in revenue generation. However, EBIT and EBITDA margins remained robust at 27.8% and 27.1%, respectively, reflecting efficient operational management.

Balance Sheet

The balance sheet is strong with a healthy Debt-to-Equity Ratio of 0.17, indicating low leverage and financial stability. The Return on Equity (ROE) improved to 24.0% in 2024, showcasing profitability in using shareholder equity. The Equity Ratio stands at 58.5%, suggesting a solid capital structure with substantial equity backing.

Cash Flow

Cash flow analysis reveals concerns with no reported Free Cash Flow or Operating Cash Flow in 2024, a significant drop from previous years. The Free Cash Flow to Net Income Ratio cannot be computed due to missing data, indicating potential cash flow management issues despite positive net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.35B	3.02B	2.48B	1.68B	1.32B
Gross Profit	1.13B	1.30B	1.06B	544.44M	417.04M
EBITDA	637.30M	864.41M	720.58M	205.58M	-932.94M
Net Income	587.50M	686.43M	531.43M	125.44M	-1.01B
Balance Sheet
Total Assets	4.17B	4.33B	4.06B	2.84B	2.56B
Cash, Cash Equivalents and Short-Term Investments	1.68B	1.79B	1.94B	1.01B	1.26B
Total Debt	423.05M	508.81M	651.28M	731.57M	779.37M
Total Liabilities	1.70B	2.18B	2.40B	1.57B	1.45B
Stockholders Equity	2.44B	2.12B	1.63B	1.25B	1.09B
Cash Flow
Free Cash Flow	184.07M	803.17M	976.54M	11.27M	229.66M
Operating Cash Flow	274.41M	889.35M	1.01B	86.22M	255.75M
Investing Cash Flow	-268.55M	-636.98M	-192.56M	-55.91M	1.50B
Financing Cash Flow	-346.64M	-296.82M	-63.67M	-86.56M	-1.60B

China Electronics Huada Technology Company Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0085, the sentiment is Neutral. The current price of 1.4 is below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.44, and above the 200-day MA of 1.36, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.22 is Neutral, neither overbought nor oversold. The STOCH value of 61.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0085.

China Electronics Huada Technology Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8257	70 Outperform	HK$74.00M	12.33	3.01%	―	-32.47%	-74.03%
0085	66 Neutral	HK$2.86B	4.87	25.76%	7.45%	-22.20%	-14.43%
Sector *	65 Neutral	S$581.06M	13.98	0.69%	6.29%	2.72%	-27.37%
1967	60 Neutral	HK$118.50M	67.39	0.60%	―	6.98%	―
1679	46 Neutral	HK$41.68M	―		―	27.19%	54.51%
1912	45 Neutral	HK$84.56M	―	-42.18%	―	-6.19%	18.71%
8490	40 Underperform	HK$95.24M	68.18	-21.90%	―	-8.34%	-8828.57%

China Electronics Huada Technology Company Limited Corporate Events

China Electronics Huada Technology Reports Successful AGM Outcomes

China Electronics Huada Technology Company Limited announced the successful passing of all resolutions at its Annual General Meeting held on June 27, 2025. Key resolutions included the approval of financial statements, the declaration of a dividend, the re-election of directors, and the re-appointment of the independent auditor. The AGM also granted mandates for share buybacks and the issuance of additional shares, reflecting strong shareholder support and strategic positioning for future growth.

China Electronics Huada Issues Profit Warning Amidst Market Challenges

China Electronics Huada Technology Company Limited has issued a profit warning, anticipating a significant decline in profits for the first half of 2025 compared to the same period last year. The expected decrease is attributed to reduced revenue and gross profit margins due to sluggish demand for smart cards, increased competition, and falling prices in the industry, which have adversely affected the company’s financial performance.

China Electronics Huada Technology Announces AGM and Share Buyback Plan

China Electronics Huada Technology Company Limited has announced its upcoming annual general meeting scheduled for June 27, 2025, in Hong Kong. Key agenda items include the consideration of financial statements, declaration of a dividend, re-election of directors, and re-appointment of the independent auditor. Additionally, the company seeks approval for a share buyback program, allowing the purchase of up to 10% of its issued shares, which could impact its market positioning and shareholder value.