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

• Market Cap: HK$2.80B
• Dividend Yield: 6.98%
• Average Volume (3M): 6.53M
• Price to Earnings (P/E): 6.7
• Beta (1Y): 1.25
• Revenue Growth: -18.35%
• EPS Growth: -6.00%
• Country: HK
• Employees: 470
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.07
• Shares Outstanding: 2,029,872,000
• 10 Day Avg. Volume: 6,831,250
• 30 Day Avg. Volume: 6,527,272
• PEG Ratio: -0.29
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 13.78
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: HK$1.50 ▲(11.11% Upside)

The stock's overall score is driven by strong valuation metrics, indicating potential value for investors. However, concerns about cash flow management and bearish technical indicators weigh on the score. The company needs to address revenue growth and cash flow issues to improve its financial health.

Positive Factors

Strong Profitability

Strong profitability and low leverage indicate efficient operations and financial stability, providing a solid foundation for long-term growth.

Healthy Balance Sheet

A healthy balance sheet with low debt enhances financial flexibility and resilience, supporting sustainable business operations and growth.

High Gross Profit Margin

High gross and net profit margins reflect effective cost management and pricing power, contributing to long-term profitability and competitive advantage.

Negative Factors

Declining Revenue

A significant decline in revenue growth indicates potential challenges in market demand or competition, which could impact future earnings and market position.

Cash Flow Concerns

Absence of cash flow data raises concerns about liquidity and cash management, potentially affecting the company's ability to invest in growth and meet obligations.

Revenue Growth Challenges

Challenges in revenue growth and cash management could hinder the company's ability to sustain operations and invest in future opportunities, affecting long-term prospects.

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 multiple streams, primarily from the sale of semiconductor products and electronic components. The company manufactures and sells integrated circuits that cater to various industries, which constitutes a significant portion of its revenue. Additionally, Huada Technology offers customized electronic solutions and services, which help to further diversify its income. Strategic partnerships with major technology firms and collaborations in research and development projects also contribute to its earnings, enabling the company to leverage advanced technologies and expand its market reach.

China Electronics Huada Technology Company Limited Financial Statement Overview

Summary

The company exhibits strong profitability with a high gross profit margin and positive net profit margin. However, the decline in revenue growth and absence of cash flow data in 2024 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.54B	2.35B	3.02B	2.48B	1.68B	1.32B
Gross Profit	774.64M	1.13B	1.30B	1.06B	544.44M	417.04M
EBITDA	366.54M	637.30M	864.41M	720.58M	205.58M	-932.94M
Net Income	347.24M	587.50M	686.43M	531.43M	125.44M	-1.01B
Balance Sheet
Total Assets	4.23B	4.17B	4.33B	4.06B	2.84B	2.56B
Cash, Cash Equivalents and Short-Term Investments	1.68B	1.68B	1.79B	1.90B	1.01B	1.20B
Total Debt	419.65M	423.05M	508.81M	651.28M	731.57M	779.37M
Total Liabilities	1.76B	1.70B	2.18B	2.40B	1.57B	1.45B
Stockholders Equity	2.44B	2.44B	2.12B	1.63B	1.25B	1.09B
Cash Flow
Free Cash Flow	98.65M	184.07M	803.17M	976.54M	11.27M	229.66M
Operating Cash Flow	187.73M	274.41M	889.35M	1.01B	86.22M	255.75M
Investing Cash Flow	-153.56M	-268.55M	-636.98M	-192.56M	-55.91M	1.58B
Financing Cash Flow	-335.82M	-346.64M	-296.82M	-63.67M	-86.56M	-1.60B

China Electronics Huada Technology Company Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1.35 is above the 20-day moving average (MA) of 1.32, below the 50-day MA of 1.37, and below the 200-day MA of 1.44, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 77.08 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0085	61 Neutral	HK$2.80B	6.73	17.96%	6.98%	-18.35%	-6.00%
8257	59 Neutral	HK$237.00M	28.21	3.83%	―	-13.07%	-34.88%
1967	57 Neutral	HK$126.00M	-15.11	-2.32%	―	-6.45%	-596.43%
1912	43 Neutral	HK$90.92M	-0.83	―	―	―	―
8490	41 Neutral	HK$86.07M	-1.14	-41.46%	―	-26.02%	-4977.27%
1679	39 Underperform	HK$87.40M	-0.67	―	―	37.63%	56.51%

China Electronics Huada Technology Company Limited Corporate Events

China Electronics Huada Technology Announces Board Composition

China Electronics Huada Technology Company Limited, a company incorporated in the Cayman Islands and continued in Bermuda, has announced the composition of its board of directors. The board consists of eight directors, including non-executive, independent non-executive, and executive directors, each with specific roles and committee memberships. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic direction and decision-making processes.

The most recent analyst rating on (HK:0085) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Electronics Huada Technology Company Limited stock, see the HK:0085 Stock Forecast page.

Leadership Change at China Electronics Huada Technology

China Electronics Huada Technology Company Limited announced the resignation of Mr. Fu Dan as a non-executive director, effective December 15, 2025, due to a change in work arrangements. Mr. Qin Wei has been appointed as the new non-executive director. Mr. Qin brings a strong background in chemical engineering and technology, with extensive experience in various roles related to semiconductor operations and business development. This leadership change is expected to bring fresh perspectives to the company’s strategic direction, potentially impacting its operations and market positioning.

The most recent analyst rating on (HK:0085) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Electronics Huada Technology Company Limited stock, see the HK:0085 Stock Forecast page.