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

• Market Cap: €269.91M
• Dividend Yield: N/A
• Average Volume (3M): 541.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: HK$0.10 ▼(-15.00% 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 gross profit and net profit margins, while cash flow analysis highlights negative operating and free cash flows. Despite a low debt-to-equity ratio, the negative return on equity and declining free cash flow growth raise concerns about 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	60.84M	86.04M	110.50M	63.01M	204.54M	1.78B
Gross Profit	-42.27M	-48.48M	-97.06M	-41.10M	134.22M	718.76M
EBITDA	-170.90M	-407.06M	-318.38M	-316.72M	406.15M	463.06M
Net Income	-287.91M	-394.94M	-320.74M	-328.69M	227.76M	419.04M
Balance Sheet
Total Assets	4.17B	3.62B	4.69B	5.38B	6.68B	7.31B
Cash, Cash Equivalents and Short-Term Investments	682.91M	491.80M	1.08B	1.47B	2.11B	2.00B
Total Debt	293.78M	171.19M	697.44M	826.24M	1.30B	1.86B
Total Liabilities	849.96M	629.88M	1.27B	1.47B	2.00B	2.76B
Stockholders Equity	3.24B	2.91B	3.34B	3.81B	4.56B	4.42B
Cash Flow
Free Cash Flow	-125.86M	-85.66M	-197.73M	191.56M	-50.77M	-732.44M
Operating Cash Flow	-125.73M	-85.57M	-197.59M	194.83M	-50.69M	-731.43M
Investing Cash Flow	-119.99M	93.54M	-21.64M	130.95M	1.50B	997.59M
Financing Cash Flow	-497.03M	-532.65M	-166.76M	-661.91M	-745.21M	-164.97M

Chuang's China Investments Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.12
• 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:0298, the sentiment is Neutral. The current price of 0.12 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.12, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.41 is Neutral, neither overbought nor oversold. The STOCH value of 69.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$314.28M	―	-9.81%	―	48.60%	-441.98%
0865	47 Neutral	HK$216.01M	―	-5.13%	―	-76.39%	-1142.86%
3616	47 Neutral	HK$348.00M	-4.56	―	―	―	―
2892	46 Neutral	HK$277.50M	-4.71	-9.07%	―	-72.10%	90.00%
2231	39 Underperform	HK$256.80M	―	―	―	-37.97%	87.04%
0298	38 Underperform	€269.91M	-0.68	-9.74%	―	173.15%	2.36%

Chuang's China Investments Limited Corporate Events

Chuang’s China Completes Kaisa Notes Exchange Amid Restructuring

Chuang’s China Investments Limited, along with Chuang’s Consortium, announced the successful exchange of their old Kaisa notes for new notes and mandatory convertible bonds as part of the Kaisa Restructuring. This exchange, effective from September 15, 2025, involves no cash transactions and aims to restructure the company’s debt profile by extending maturities and altering interest rates. The restructuring is expected to impact the company’s financial stability and market positioning positively, providing a more sustainable financial framework for future operations.

Chuang’s China Announces AGM Results and Board Changes

Chuang’s China Investments Limited announced the results of its Annual General Meeting held on September 15, 2025, where all proposed resolutions were passed. The company saw the retirement of Mr. Andrew Fan Chun Wah as an Independent Non-Executive Director, and the election of Mr. Yau Chi Ming to the same position, who will also join the audit, remuneration, and nomination committees. These changes are expected to impact the company’s governance structure positively.

Chuang’s China Investments Limited Announces Board and Committee Structure

Chuang’s China Investments Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The company has also established four committees, namely the Audit, Remuneration, Nomination, and Corporate Governance Committees, with specific directors assigned as chairmen or members of these committees. This announcement reflects the company’s commitment to structured governance and oversight, potentially impacting its strategic decision-making and stakeholder confidence.

Chuang’s China Receives Waiver for Circular Dispatch Delay

Chuang’s China Investments Limited has announced a delay in the dispatch of a circular related to a major transaction under Chapter 14 of the Listing Rules. The company has been granted a waiver by the Stock Exchange of Hong Kong to extend the deadline for dispatching this circular to shareholders until September 12, 2025, due to the need for additional time to prepare necessary information.

Chuang’s China Announces Major Debt Assignment Agreement

Chuang’s China Investments Limited has entered into a Debt Assignment Agreement involving its indirect wholly-owned subsidiaries, marking a significant transaction for the company. The agreement, valued at RMB95 million, relates to the company’s 51% interest in the Chengdu Project and is classified as a major transaction under the Hong Kong Stock Exchange’s Listing Rules. The transaction does not require a general meeting due to shareholder approval already obtained, and a circular with further details will be distributed to shareholders, pending regulatory compliance.