China Ruyi Holdings Limited (0136) AI Stock Analysis

• Market Cap: HK$37.47B
• Dividend Yield: N/A
• Average Volume (3M): 84.63M
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.37
• Revenue Growth: -13.62%
• EPS Growth: -8.47%
• Country: HK
• Employees: 553
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.09
• Shares Outstanding: 16,800,615,000
• 10 Day Avg. Volume: 51,667,688
• 30 Day Avg. Volume: 84,629,044
• PEG Ratio: 1.16
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 7.61
• P/FCF Ratio: 57.05
• 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: 51 Neutral
• Price Target: HK$2.50 ▲(10.62% Upside)

The overall stock score is primarily influenced by financial performance, which shows strong revenue growth but is offset by net income instability. Technical analysis indicates a bearish trend with oversold conditions, while valuation suggests moderate pricing. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Strong Revenue Growth

The company's strong revenue growth and improved gross margins highlight its ability to expand market reach and enhance profitability.

Sustainability Focus

A commitment to sustainability can drive long-term consumer loyalty and open new market opportunities, aligning with global environmental trends.

Robust Balance Sheet

A robust balance sheet with low financial leverage provides stability and flexibility to navigate economic uncertainties.

Negative Factors

Net Income Instability

Instability in net income can undermine investor confidence and affect the company's ability to invest in growth opportunities.

Declining Net Profit Margin

A declining net profit margin indicates challenges in cost management and pricing power, potentially impacting long-term profitability.

Inconsistent Free Cash Flow

Inconsistent free cash flow can limit the company's ability to reinvest in business operations and manage financial obligations effectively.

China Ruyi Holdings Limited Business Overview & Revenue Model

Company Description

China Ruyi Holdings Limited, an investment holding company, engages in content production and online streaming business in the People's Republic of China, Hong Kong, Europe, and internationally. It operates through three segments: Content Production and Online Streaming Business; Internet Community and Related Businesses; and Manufacture and Sales of Accessories. The company engages in radio television programme production, film and television programmes series production and distribution; commercial internet cultural activities; value-added telecommunication services. In addition, it manufactures, sells, and trades in accessories for photographic, electrical, and multimedia products; and provides data processing, technology development, promotion, and transfer consulting, services. The company was formerly known as HengTen Networks Group Limited and changed its name to China Ruyi Holdings Limited in January 2022. China Ruyi Holdings Limited was incorporated in 1997 and is headquartered in Wanchai, Hong Kong.

How the Company Makes Money

China Ruyi Holdings Limited generates revenue through multiple key streams. The primary revenue source is the sale of textiles and apparel to both domestic and international clients, including major fashion brands and retailers. The company benefits from strategic partnerships with well-known brands, which enhance its market presence and drive sales. Additionally, China Ruyi invests in research and development to innovate and improve its product offerings, which can lead to premium pricing and increased margins. The company's focus on sustainability and eco-friendly practices also attracts a growing segment of environmentally conscious consumers, contributing to its revenue growth.

China Ruyi Holdings Limited Financial Statement Overview

Summary

China Ruyi Holdings Limited shows strong revenue growth and improved gross margins, but net income instability and fluctuating cash flows pose risks. The balance sheet remains robust with good equity positions, providing a cushion against financial uncertainties.

Income Statement

The company has experienced significant revenue growth over the years, especially from 2020 to 2021, but the net profit margin has declined significantly, resulting in a net loss in 2024. The gross profit margin has improved, indicating better cost management, but the volatility in net income suggests instability.

Balance Sheet

The company maintains a strong equity position with a high equity ratio, indicating solid financial health. The debt-to-equity ratio is manageable, suggesting low financial leverage. However, fluctuations in net income affect return on equity negatively.

Cash Flow

The operating cash flow is positive and has improved compared to earlier years, but free cash flow growth is inconsistent. The company has managed to maintain positive free cash flow in recent years, yet the ratio of operating cash flow to net income is concerning due to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.04B	3.67B	3.63B	1.32B	2.32B	230.11M
Gross Profit	1.77B	1.91B	1.16B	261.62M	1.03B	110.22M
EBITDA	1.20B	1.29B	3.08B	-123.61M	1.81B	33.94M
Net Income	1.16B	-190.53M	689.76M	789.52M	1.18B	12.02M
Balance Sheet
Total Assets	27.45B	21.67B	16.68B	13.22B	10.62B	1.27B
Cash, Cash Equivalents and Short-Term Investments	8.46B	4.36B	680.74M	1.29B	1.18B	1.05B
Total Debt	3.05B	1.77B	1.81B	1.81B	1.56B	16.74M
Total Liabilities	7.11B	5.34B	5.65B	5.24B	5.00B	90.07M
Stockholders Equity	20.36B	16.35B	11.04B	7.97B	5.61B	1.18B
Cash Flow
Free Cash Flow	213.51M	489.46M	483.58M	-324.23M	-1.50B	-237.70M
Operating Cash Flow	223.67M	517.10M	543.23M	-322.56M	-1.47B	-234.82M
Investing Cash Flow	-2.83B	-396.48M	-3.34B	-1.35B	-134.98M	-16.94M
Financing Cash Flow	4.72B	2.78B	2.17B	1.68B	1.71B	13.58M

China Ruyi Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.26
• 50DMA: Negative
• 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:0136, the sentiment is Negative. The current price of 2.26 is above the 20-day moving average (MA) of 2.24, below the 50-day MA of 2.38, and below the 200-day MA of 2.54, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 34.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0136.

China Ruyi Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1981	61 Neutral	HK$1.72B	9.28	7.57%	5.71%	0.59%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1060	56 Neutral	HK$25.69B	43.00	3.30%	―	40.31%	212.50%
0136	51 Neutral	HK$37.47B	27.53	7.01%	―	-13.62%	-8.47%
0326	47 Neutral	HK$8.72B	-26.63	-14.75%	―	184.30%	3.58%
1003	46 Neutral	HK$1.08B	―	―	―	―	―
1132	45 Neutral	HK$187.58M	-6.38	24.24%	―	-7.90%	93.34%

China Ruyi Holdings Limited Corporate Events

China Ruyi Raises HK$2.21 Billion After Completing Second Tranche Share Subscription

China Ruyi Holdings Limited has completed the second tranche of a share subscription under its existing general mandate, solidifying a multi-stage equity fundraising exercise. The Hong Kong-listed company issued 400 million new shares at HK$2.60 each in the second tranche, bringing the total shares issued across both tranches to 790 million at an average price of HK$2.80 per share and raising gross proceeds of approximately HK$2.21 billion, which is expected to strengthen its capital base and financial flexibility for future corporate needs and strategic initiatives.

The most recent analyst rating on (HK:0136) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on China Ruyi Holdings Limited stock, see the HK:0136 Stock Forecast page.

China Ruyi Adjusts Subscription Shares Amid Price Concerns

China Ruyi Holdings Limited has entered into a fourth supplemental agreement to adjust the number of its 2nd Tranche Subscription Shares from 800 million to 400 million, with completion set for December 19, 2025. This decision comes as the company’s share price remains below the subscription price, and it aims to maintain a positive relationship with the Subscriber, who will become a key shareholder. The revised arrangement is deemed fair and beneficial for the company and its shareholders, with expected gross proceeds from the subscription totaling approximately HK$2,210 million.

The most recent analyst rating on (HK:0136) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on China Ruyi Holdings Limited stock, see the HK:0136 Stock Forecast page.

China Ruyi Revises Share Subscription Terms

China Ruyi Holdings Limited announced the entry into a third supplemental agreement to revise the terms of its share subscription and placing agreements. The company will aggregate and reduce the number of subscription shares, adjust the subscription price, and remove certain procedural requirements. These changes are aimed at aligning with market conditions and are considered fair and reasonable by the company’s directors, potentially impacting the company’s share capital and market positioning.

The most recent analyst rating on (HK:0136) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on China Ruyi Holdings Limited stock, see the HK:0136 Stock Forecast page.

China Ruyi Holdings Announces Supplemental Agreement for New Share Issuance

China Ruyi Holdings Limited has announced a supplemental agreement regarding the issuance of new shares under a General Mandate, involving Infini Global Master Fund, a reputable international multi-strategy fund. The company has applied for listing approval for the second tranche of subscription shares and is confident in its strong cash position to support its short-term operations, considering the subscription price satisfactory.

The most recent analyst rating on (HK:0136) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on China Ruyi Holdings Limited stock, see the HK:0136 Stock Forecast page.