Liu Chong Hing Investment Limited (0194) AI Stock Analysis

• Market Cap: HK$1.76B
• Dividend Yield: 6.02%
• Average Volume (3M): 44.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: 54.72%
• EPS Growth: 59.72%
• Country: HK
• Employees: 546
• Sector: Financial
• Sector Strength: 73
• Industry: Real Estate - Development
• EPS (TTM): 0.04
• Shares Outstanding: 378,583,440
• 10 Day Avg. Volume: 43,406
• 30 Day Avg. Volume: 44,935
• 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: HK$4.50
• Price Target Upside: -3.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: HK$4.50 ▼(-3.23% Downside)

The overall stock score is driven primarily by the technical analysis, which indicates a positive price trend, and the valuation component, which highlights an attractive dividend yield despite profitability concerns. Financial performance poses significant risks due to negative earnings and weak cash flows, underscoring the need for operational improvements.

Liu Chong Hing Investment Limited Business Overview & Revenue Model

Company Description

Liu Chong Hing Investment Limited, an investment holding company, engages in the investment, development, sale, management, and letting of properties in Hong Kong, the People's Republic of China, and Thailand. The company operates through Property Investment, Property Development, Property Management, Treasury Investment, Trading and Manufacturing, and Hotel Operation segments. Its projects primarily include offices, commercial buildings, residential buildings, industrial buildings, and shopping centers, as well as retail stores. The company also provides money lending, nominee, and interior decoration services; operates and manages budget hotel under the Hanting brand name, as well as 183-room hotel and serviced residences; manufactures and sells magnetic materials; and deals and invests in securities and other financial instruments. In addition, it is involved in the food and beverage business. The company was incorporated in 1970 and is based in Central, Hong Kong.

How the Company Makes Money

Liu Chong Hing Investment Limited makes money through multiple revenue streams. Its primary revenue source is the development and sale of residential and commercial properties, which involves acquiring land, constructing buildings, and selling units to buyers. Another significant revenue stream is property investment, where the company earns rental income by leasing out its portfolio of commercial and residential properties. Additionally, the company's hospitality segment generates revenue through its hotel operations, which include room bookings, food and beverage sales, and other guest services. Treasury investment activities, including the management of financial assets and securities, provide another avenue for income, although they contribute less significantly compared to the property-related activities. Strategic partnerships and joint ventures in property development projects may also enhance revenue generation and contribute to the company's financial growth.

Liu Chong Hing Investment Limited Financial Statement Overview

Summary

Liu Chong Hing Investment Limited faces profitability and cash flow challenges, with negative net income and inadequate cash flow generation in recent years. While the company maintains a low leverage ratio and a stable equity position, its ability to generate consistent profits and cash flows remains a key concern. The financial trajectory suggests a need for operational improvements to stabilize earnings and enhance liquidity.

Income Statement

The company has shown fluctuating revenues with a recent uptrend, from HKD 732 million in 2023 to HKD 933 million in 2024. However, net profit margins have been negative, with a significant net loss in 2024, indicating profitability challenges. EBIT and EBITDA margins have also been volatile, reflecting unstable operating performance.

Balance Sheet

The balance sheet shows a strong equity base, with a debt-to-equity ratio of 0.32 for 2024, indicating low leverage. However, stockholders' equity has decreased from HKD 12.6 billion in 2022 to HKD 10.5 billion in 2024, suggesting a decline in shareholder wealth. The equity ratio remains robust, reflecting a stable financial position relative to total assets.

Cash Flow

Cash flow operations are concerning, as operating cash flow was zero in 2024, and free cash flow was negative in 2023. The operating cash flow to net income ratio cannot be assessed due to zero operating cash flow in 2024, highlighting potential liquidity issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	933.03M	732.31M	715.24M	835.16M	771.62M
Gross Profit	495.60M	-142.49M	389.73M	472.90M	446.94M
EBITDA	215.79M	-360.19M	354.80M	772.55M	370.95M
Net Income	-837.06M	-814.94M	86.15M	427.30M	162.56M
Balance Sheet
Total Assets	14.89B	15.00B	15.83B	16.18B	14.94B
Cash, Cash Equivalents and Short-Term Investments	2.24B	1.22B	1.65B	2.03B	1.96B
Total Debt	3.37B	2.41B	2.21B	1.87B	1.48B
Total Liabilities	4.35B	3.39B	3.17B	2.95B	2.27B
Stockholders Equity	10.51B	11.57B	12.60B	13.15B	12.58B
Cash Flow
Free Cash Flow	291.14M	126.83M	-270.17M	151.88M	275.36M
Operating Cash Flow	307.84M	169.12M	-227.75M	169.61M	285.08M
Investing Cash Flow	-79.35M	-532.43M	-128.29M	83.34M	-183.95M
Financing Cash Flow	656.26M	-62.14M	125.36M	-268.52M	-302.83M

Liu Chong Hing Investment Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.65
• 50DMA: Positive
• 100DMA: Positive
• 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:0194, the sentiment is Positive. The current price of 4.65 is below the 20-day moving average (MA) of 4.68, above the 50-day MA of 4.45, and above the 200-day MA of 4.03, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 59.58 is Neutral, neither overbought nor oversold. The STOCH value of 75.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0194.

Liu Chong Hing Investment Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.89B	12.03	10.28%	3.73%	9.80%	1.66%
0194	60 Neutral	HK$1.76B	―	-3.74%	6.02%	54.72%	59.72%
ONF	―	€136.48M	―	-114.48%	―	―	―
CS4	―	€134.93M	―		―	―	―
C7B	―	€146.32M	12.76	1.84%	―	―	―
0563	52 Neutral	HK$1.63B	2.80	-4.51%	8.53%	23.54%	-204.92%
1238	44 Neutral	HK$1.39B	―	-16.13%	―	10.08%	-118.45%

Liu Chong Hing Investment Limited Corporate Events

Liu Chong Hing Investment Limited Reports Turnaround in Interim Results

Liu Chong Hing Investment Limited reported its unaudited interim results for the six months ended June 30, 2025, showing a significant turnaround with a profit of HK$13.7 million compared to a loss of HK$418.5 million in the same period the previous year. The improvement was driven by increased revenue across various streams and a notable reduction in other losses, positioning the company more favorably within the industry and providing a positive outlook for stakeholders.

Liu Chong Hing Investment Declares Interim Dividend for 2025

Liu Chong Hing Investment Limited announced an interim dividend of HKD 0.11 per share for the six months ending June 30, 2025. This announcement reflects the company’s continued commitment to providing returns to its shareholders and may influence investor sentiment positively, given the stable dividend payout.

Liu Chong Hing Investment Schedules Board Meeting for Interim Results

Liu Chong Hing Investment Limited has announced a board meeting scheduled for August 7, 2025, to approve the unaudited interim results for the first half of the year and consider an interim dividend. This meeting could impact the company’s financial strategy and provide insights into its performance, potentially affecting stakeholders’ interests.

Liu Chong Hing Investment Limited AGM Approves Key Resolutions

Liu Chong Hing Investment Limited held its Annual General Meeting on May 22, 2025, where all proposed resolutions were approved by shareholders. Key resolutions included the adoption of financial statements, approval of a final cash dividend, re-election of directors, and re-appointment of auditors, reflecting strong shareholder support and stability in the company’s governance.