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

• Market Cap: HK$2.98B
• Dividend Yield: 7.14%
• Average Volume (3M): 2.64M
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.98
• Revenue Growth: -22.20%
• EPS Growth: -14.43%
• Country: HK
• Employees: 470
• Sector: Technology
• Sector Strength: 82
• Industry: Semiconductors
• EPS (TTM): 0.29
• Shares Outstanding: 2,029,872,000
• 10 Day Avg. Volume: 3,086,943
• 30 Day Avg. Volume: 2,640,272
• PEG Ratio: 0.02
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.85
• 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: 63 Neutral
• Price Target: ―

China Electronics Huada Technology presents a mix of strengths and challenges. The company's strong profitability and attractive valuation are key positives, with a low P/E ratio and high dividend yield enhancing its appeal. However, concerns over declining revenue and lack of cash flow data highlight potential risks. The technical indicators are mixed, with the stock showing moderate support levels but some bearish signals. Overall, the stock is slightly above average, driven by its valuation and financial stability, but caution is warranted due to revenue and cash flow concerns.

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 demonstrates strong profitability and a stable financial position with low leverage. However, the decline in revenue and absence of cash flow data in the latest year raise concerns about cash management and future growth potential. The company should focus on reviving revenue growth and ensuring consistent cash flow generation to maintain its financial health.

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
	EBIT
652.07M	757.26M	586.53M	105.80M	45.04M
	EBITDA
637.30M	864.41M	720.58M	205.58M	-932.94M
	Net Income Common Stockholders
587.50M	686.43M	531.43M	125.44M	-1.01B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.68B	1.79B	1.94B	1.01B	1.26B
	Total Assets
4.17B	4.33B	4.06B	2.84B	2.56B
	Total Debt
423.05M	508.81M	651.28M	731.57M	779.37M
	Net Debt
-319.98M	-598.70M	-555.33M	212.24M	252.73M
	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
0.00	803.17M	976.54M	11.27M	229.66M
	Operating Cash Flow
0.00	889.35M	1.01B	86.22M	255.75M
	Investing Cash Flow
0.00	-636.98M	-192.56M	-55.91M	1.50B
	Financing Cash Flow
0.00	-296.82M	-63.67M	-86.56M	-1.60B

China Electronics Huada Technology Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.48
• 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 1.48 is above the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.41, and above the 200-day MA of 1.32, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.17 is Neutral, neither overbought nor oversold. The STOCH value of 81.25 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	63 Neutral	HK$2.98B	5.08	25.76%	7.14%	-22.20%	-14.43%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%
CLPXF		$14.46B	9.20	7.93%	3.54%	―	―
CREQF		$234.51M	―	-5.26%	―	―	―
JLMKF		$4.14M	―	-132.74%	―	―	―
ZTCOF		$20.31B	12.45	11.39%	2.93%	―	―
GSZ		€3.34B	28.94	3.19%	―	―	―

China Electronics Huada Technology Company Limited Corporate Events

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.

China Electronics Huada Technology Announces 2024 Annual Results and Dividend

China Electronics Huada Technology Company Limited announced its annual results for the year ending December 31, 2024, including a final ordinary cash dividend of HKD 0.09 per share. The dividend is set to be paid on July 31, 2025, following shareholders’ approval on June 27, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

China Electronics Huada Technology Reports 2024 Financial Results and Registrar Change

China Electronics Huada Technology Company Limited announced its audited consolidated results for the year ended December 31, 2024, reporting a decrease in revenue from HK$3,019,120,000 in 2023 to HK$2,348,984,000 in 2024. Despite the revenue drop, the company maintained a gross profit of HK$1,134,963,000, supported by an increase in other income. The company also announced a change in its Hong Kong branch share registrar and transfer office, which could impact its operational efficiency and stakeholder interactions.

China Electronics Huada Technology Schedules Board Meeting for Annual Results

China Electronics Huada Technology Company Limited announced that its board of directors will meet on March 28, 2025, to approve and publish the annual results for the year ending December 31, 2024. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders and influencing market perceptions.