Liu Chong Hing Investment Limited (0194) AI Stock Analysis

• Market Cap: HK$1.68B
• Dividend Yield: 6.35%
• Average Volume (3M): 57.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: 54.72%
• EPS Growth: 59.72%
• Country: HK
• Employees: 546
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.04
• Shares Outstanding: 378,583,440
• 10 Day Avg. Volume: 28,400
• 30 Day Avg. Volume: 57,066
• PEG Ratio: -0.66
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 5.28
• 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: 49 Neutral
• Price Target: HK$4.50 ▲(1.35% Upside)

The overall stock score is primarily impacted by financial performance challenges, including negative net income and cash flow issues. Technical analysis indicates bearish momentum, while valuation shows a high dividend yield but negative P/E ratio, reflecting profitability concerns.

Positive Factors

Revenue Growth

The revenue growth trend indicates expanding business operations and market presence, which is crucial for long-term sustainability and competitiveness.

Low Leverage

A low leverage ratio provides financial flexibility and reduces risk, enabling the company to navigate economic fluctuations and invest in growth opportunities.

Profit Turnaround

The turnaround to profitability reflects successful operational adjustments and improved financial health, enhancing investor confidence and future growth potential.

Negative Factors

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies and market challenges, which may hinder long-term financial stability and growth.

Cash Flow Concerns

Inadequate cash flow generation can restrict the company's ability to reinvest in its business, pay down debt, or return capital to shareholders, affecting long-term viability.

Decline in Shareholder Equity

A decline in shareholder equity suggests reduced asset value and potential financial strain, impacting investor perception and the company's capacity to fund future growth.

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

The company generates revenue primarily through rental income from its property portfolio, which includes commercial and residential properties in prime locations. Additionally, Liu Chong Hing Investment Limited earns income from its hotel operations and management services. Key revenue streams also include capital gains from the development and sale of properties. The company may engage in strategic partnerships with other real estate developers and financial institutions to enhance its investment opportunities and operational efficiencies, further contributing to its earnings.

Liu Chong Hing Investment Limited Financial Statement Overview

Summary

The company faces profitability and cash flow challenges, with negative net income and inadequate cash flow generation. Despite a low leverage ratio and stable equity position, the need for operational improvements is evident 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	933.03M	732.31M	715.24M	835.16M	771.62M
Gross Profit	544.48M	495.60M	456.20M	389.73M	472.90M	446.94M
EBITDA	195.00M	215.79M	-360.19M	163.36M	337.59M	268.44M
Net Income	-403.74M	-837.06M	-814.94M	86.15M	427.30M	162.56M
Balance Sheet
Total Assets	14.67B	14.89B	15.00B	15.83B	16.18B	14.94B
Cash, Cash Equivalents and Short-Term Investments	2.17B	2.24B	1.22B	1.65B	2.03B	1.96B
Total Debt	3.27B	3.37B	2.41B	2.21B	1.87B	1.48B
Total Liabilities	4.10B	4.35B	3.39B	3.17B	2.95B	2.27B
Stockholders Equity	10.53B	10.51B	11.57B	12.60B	13.15B	12.58B
Cash Flow
Free Cash Flow	241.73M	291.14M	126.83M	-270.17M	151.88M	275.36M
Operating Cash Flow	257.75M	307.84M	169.12M	-227.75M	169.61M	285.08M
Investing Cash Flow	5.22M	-79.35M	-532.43M	-128.29M	83.34M	-183.95M
Financing Cash Flow	-302.46M	656.26M	-62.14M	125.36M	-268.52M	-302.83M

Liu Chong Hing Investment Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.44
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 4.44 is above the 20-day moving average (MA) of 4.43, above the 50-day MA of 4.41, and above the 200-day MA of 4.25, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.59 is Neutral, neither overbought nor oversold. The STOCH value of 25.98 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 *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1321	61 Neutral	HK$1.09B	12.02	1.84%	―	-54.44%	120.18%
0563	52 Neutral	HK$1.51B	-2.54	-4.51%	―	23.54%	-204.92%
0194	49 Neutral	HK$1.68B	-4.17	-3.74%	6.35%	54.72%	59.72%
0230	46 Neutral	HK$3.25B	-1.06	-114.48%	―	-26.58%	-40.96%
1668	41 Neutral	HK$1.22B	-0.14	―	―	―	―
1238	38 Underperform	HK$1.10B	-0.18	-17.55%	―	-11.33%	-7.70%