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

• Market Cap: HK$3.13B
• Dividend Yield: 5.66%
• Average Volume (3M): 5.04M
• Price to Earnings (P/E): 5.3
• Beta (1Y): 1.19
• Revenue Growth: -22.20%
• EPS Growth: -14.43%
• Country: HK
• Employees: 470
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): 0.14
• Shares Outstanding: 2,029,872,000
• 10 Day Avg. Volume: 5,955,000
• 30 Day Avg. Volume: 5,040,575
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 74 Outperform
• Price Target: HK$1.50 ▼(-5.66% Downside)

China Electronics Huada Technology demonstrates strong technical momentum and attractive valuation with low P/E and high dividend yield. However, concerns about declining revenue and lack of cash flow data slightly impact its financial performance score, which remains the most significant factor.

China Electronics Huada Technology Company Limited Business Overview & Revenue Model

Company Description

China Electronics Huada Technology Company Limited (0085) is a leading technology firm based in China, operating primarily within the electronics and semiconductor sectors. The company focuses on the design, development, and manufacturing of integrated circuits and electronic components, which are crucial in various applications across different industries, including telecommunications, consumer electronics, and industrial automation.

How the Company Makes Money

The company generates revenue through the sale of its semiconductor products and integrated circuits to a broad range of industries that require advanced electronic components. Key revenue streams include direct sales to manufacturers and collaborations with strategic partners in the electronics sector. The company's earnings are further supported by its ongoing investment in research and development, which enables it to maintain a competitive edge through innovation and the introduction of new and improved products. Additionally, China Electronics Huada Technology Company Limited may engage in joint ventures and strategic alliances to enhance its market presence and expand its customer base.

China Electronics Huada Technology Company Limited Financial Statement Overview

Summary

Financial statements reveal a mixed performance with strong profitability and low leverage. However, the decline in revenue and absence of cash flow data are concerning, indicating potential challenges in revenue generation and cash management.

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: Positive
• Last Price: 1.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0085, the sentiment is Positive. The current price of 1.59 is above the 20-day moving average (MA) of 1.44, above the 50-day MA of 1.40, and above the 200-day MA of 1.30, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 67.73 is Neutral, neither overbought nor oversold. The STOCH value of 82.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
0085	74 Outperform	HK$3.13B	5.32	25.76%	5.66%	-22.20%	-14.43%
Sector *	69 Neutral	¥233.77B	14.28	7.64%	2.58%	9.19%	5.32%
1967	67 Neutral	HK$168.00M	76.81	0.60%	―	6.98%	―
8257	65 Neutral	HK$70.00M	11.67	3.01%	―	-32.47%	-74.03%
1912	49 Neutral	HK$87.85M	―	-42.18%	―	-6.19%	18.71%
1679	48 Neutral	HK$62.40M	―		―	27.19%	54.51%
8490	45 Neutral	HK$98.06M	68.18	-21.90%	―	-8.34%	-8828.57%

China Electronics Huada Technology Company Limited Corporate Events

China Electronics Huada Technology Enhances Governance with New Committee Structure

China Electronics Huada Technology Company Limited has outlined the terms of reference for its Remuneration and Nomination Committee, emphasizing a structure that includes a majority of independent non-executive directors and gender diversity. The committee is tasked with making recommendations on remuneration policies, determining executive compensation, and ensuring transparency and fairness in compensation practices. This move aims to strengthen governance and align executive compensation with corporate goals, potentially enhancing the company’s industry positioning and stakeholder trust.

China Electronics Huada Technology Sets Remuneration and Nomination Committee Guidelines

China Electronics Huada Technology Company Limited has outlined the composition and duties of its Remuneration and Nomination Committee. The committee will consist of at least three directors, with a majority being independent non-executive directors, and is tasked with advising on remuneration policies and the structure for directors and senior management. This move is aimed at ensuring transparency and fairness in compensation, aligning with corporate goals, and maintaining a balanced board composition.

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.