Chuang's China Investments Limited (0298) AI Stock Analysis

• Market Cap: HK$276.95M
• Dividend Yield: N/A
• Average Volume (3M): 541.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 173.15%
• EPS Growth: 2.36%
• Country: HK
• Employees: 79
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.03
• Shares Outstanding: 2,347,035,400
• 10 Day Avg. Volume: 784,000
• 30 Day Avg. Volume: 541,071
• PEG Ratio: -0.03
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 3.19
• P/FCF Ratio: -3.21
• 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: 38 Underperform
• Price Target: HK$0.10 ▼(-7.27% Downside)

The overall stock score is primarily influenced by significant financial challenges, including persistent losses and negative cash flows. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and in oversold territory. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score.

Positive Factors

Low Debt-to-Equity Ratio

A low debt-to-equity ratio indicates that the company has manageable leverage, which can provide financial stability and flexibility in the long term.

Strategic Partnerships

Strategic partnerships and joint ventures can enhance the company's investment portfolio, potentially leading to increased revenue streams and market expansion.

Diverse Revenue Streams

Diverse revenue streams from property sales, rentals, and securities investments can provide stability and reduce dependency on a single income source.

Negative Factors

Negative Cash Flows

Negative cash flows indicate potential liquidity issues, which can limit the company's ability to invest in growth opportunities and meet financial obligations.

Persistent Losses

Persistent losses and negative margins can undermine financial stability, making it challenging to achieve sustainable profitability and shareholder returns.

Volatile Revenue Growth

Volatile revenue growth reflects market uncertainties and operational challenges, potentially affecting long-term business planning and investor confidence.

Chuang's China Investments Limited Business Overview & Revenue Model

Company Description

Chuang's China Investments Limited, an investment holding company, engages in property development, investment, and trading activities in the People's Republic of China, Hong Kong, and Malaysia. The company's property portfolio includes commercial and residential properties. It is also involved in the operation and management of hotels; sale of goods and merchandise, including art pieces; provision of securities investment and trading services; money lending activities; manufacture of yachts; and development, construction, and operation of cemeteries, as well as provision of related management services. The company was founded in 1980 and is based in Central, Hong Kong. Chuang's China Investments Limited is a subsidiary of Profit Stability Investments Limited.

How the Company Makes Money

Chuang's China Investments generates revenue primarily through rental income from its real estate properties, which include commercial and residential units. The company also earns income from property sales and development projects. Additionally, it has a revenue stream from investments in securities, where it gains from capital appreciation and dividends. The firm has established strategic partnerships and joint ventures to enhance its investment portfolio, which further contributes to its earnings. Market conditions, property values, and demand for rental properties significantly influence its revenue generation.

Chuang's China Investments Limited Financial Statement Overview

Summary

Chuang's China Investments Limited faces significant financial challenges, with persistent losses impacting profitability and cash flow. The income statement reveals negative margins, and cash flow analysis highlights negative operating and free cash flows. Despite a low debt-to-equity ratio, the company's inability to generate positive returns raises concerns about its financial stability.

Income Statement

The income statement reveals significant challenges, with negative gross profit and net profit margins indicating substantial losses. Revenue growth is volatile, with a recent increase following a previous decline. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, suggesting manageable leverage. However, the negative return on equity indicates that the company is not generating returns for shareholders. The equity ratio is stable, but overall financial health is weakened by persistent losses.

Cash Flow

Cash flow analysis highlights negative operating and free cash flows, with a concerning trend of declining free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow issues. Despite this, the free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and accounting profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	166.18M	86.04M	110.50M	63.01M	204.54M	1.78B
Gross Profit	-46.37M	-48.48M	-97.06M	-41.10M	134.22M	718.76M
EBITDA	-262.41M	-407.06M	-318.38M	-316.72M	406.15M	463.06M
Net Income	-281.06M	-394.94M	-320.74M	-328.69M	227.76M	419.04M
Balance Sheet
Total Assets	3.46B	3.62B	4.69B	5.38B	6.68B	7.31B
Cash, Cash Equivalents and Short-Term Investments	587.70M	491.80M	1.08B	1.47B	2.11B	2.00B
Total Debt	59.15M	171.19M	697.44M	826.24M	1.30B	1.86B
Total Liabilities	499.00M	629.88M	1.27B	1.47B	2.00B	2.76B
Stockholders Equity	2.87B	2.91B	3.34B	3.81B	4.56B	4.42B
Cash Flow
Free Cash Flow	142.54M	-85.66M	-197.73M	191.56M	-50.77M	-732.44M
Operating Cash Flow	142.63M	-85.57M	-197.59M	194.83M	-50.69M	-731.43M
Investing Cash Flow	-86.21M	93.54M	-21.64M	130.95M	1.50B	997.59M
Financing Cash Flow	-185.29M	-532.65M	-166.76M	-661.91M	-745.21M	-164.97M

Chuang's China Investments Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 100DMA: Positive
• 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:0298, the sentiment is Positive. The current price of 0.11 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.11, and below the 200-day MA of 0.12, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.79 is Neutral, neither overbought nor oversold. The STOCH value of 67.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0298.

Chuang's China Investments 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%
0216	53 Neutral	HK$347.36M	-0.48	-9.81%	―	48.60%	-441.98%
0865	48 Neutral	HK$216.01M	-5.07	-5.13%	―	-76.39%	-1142.86%
2892	46 Neutral	HK$262.50M	-4.46	-9.07%	―	-72.10%	90.00%
3616	44 Neutral	HK$258.00M	―	―	―	―	―
2231	40 Underperform	HK$123.46M	-0.51	―	―	-37.97%	87.04%
0298	38 Underperform	HK$276.95M	-0.98	-9.74%	―	173.15%	2.36%

Chuang's China Investments Limited Corporate Events

Chuang’s China Swaps Sunac Debt Holdings for New Mandatory Convertible Bonds Under Restructuring

Chuang’s China Investments Limited and its affiliate Chuang’s Consortium International Limited have announced that, pursuant to the debt restructuring of Chinese developer Sunac, they have exchanged their existing Sunac notes and a 1.00% convertible bond for new mandatory convertible bonds issued by Sunac. For Chuang’s China, this involves swapping a series of US dollar notes maturing between 2025 and 2030, plus accrued but unsettled interest of about US$0.2 million and the old convertible bond, into approximately US$2.8 million short-term mandatory convertible bonds due June 2026 and about US$2.1 million long-term mandatory convertible bonds due June 2028, with no cash consideration changing hands. The transaction crystallises the group’s exposure to Sunac into equity-linked instruments rather than conventional notes, aligning it with the broader restructuring of China’s distressed property sector and potentially affecting the timing and nature of recovery for the company and its stakeholders.

The most recent analyst rating on (HK:0298) stock is a Sell with a HK$0.10 price target. To see the full list of analyst forecasts on Chuang’s China Investments Limited stock, see the HK:0298 Stock Forecast page.

Chuang’s China Announces Times China Notes Exchange Amid Restructuring

Chuang’s China Investments Limited, in conjunction with Chuang’s Consortium, has announced a voluntary exchange of their existing Times China Notes as part of a restructuring effort. The exchange involves swapping old notes for new ones with different terms, including lower interest rates and mandatory convertible bonds. This restructuring is aimed at addressing outstanding interests and optimizing the financial instruments held by both groups, potentially impacting their financial stability and market positioning.

The most recent analyst rating on (HK:0298) stock is a Sell with a HK$0.10 price target. To see the full list of analyst forecasts on Chuang’s China Investments Limited stock, see the HK:0298 Stock Forecast page.

Chuang’s China Reports Improved Financial Position Amidst Ongoing Challenges

Chuang’s China Investments Limited reported its interim results for the six months ended September 30, 2025, highlighting a strategic debt assignment related to a Chengdu project, which bolstered its financial position with a net cash proceed of approximately HK$103 million. Despite a reduction in losses attributable to equity holders to HK$62.3 million and an improved net cash position of HK$431 million, the company continues to face challenges, as indicated by a loss per share of 2.65 HK cents, reflecting ongoing efforts to stabilize its operations and enhance shareholder value.

Chuang’s China Investments Limited Schedules Key Board Meeting for Interim Results

Chuang’s China Investments Limited has announced a board meeting scheduled for November 26, 2025, to discuss and approve the interim results for the six months ending September 30, 2025, and to consider the payment of dividends. This meeting is significant as it will provide insights into the company’s financial health and potential returns for stakeholders, impacting its market positioning and investor relations.

Chuang’s China Investments Reports Significant Loss Reduction

Chuang’s China Investments Limited announced a significant reduction in its financial losses for the six months ending September 30, 2025. The expected loss is projected to be between HK$45 million and HK$75 million, a notable decrease from the HK$176 million loss in the same period last year. This improvement is primarily attributed to a decrease in the fair value loss of the Group’s investment properties. The company is in the process of finalizing its interim results, which have not yet been audited.