Central Development Holdings Limited (0475) AI Stock Analysis

• Market Cap: HK$259.61M
• Dividend Yield: N/A
• Average Volume (3M): 1.87K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.22
• Revenue Growth: -9.07%
• EPS Growth: -55.96%
• Country: HK
• Employees: 69
• Sector: Energy
• Sector Strength: 51
• Industry: Solar
• EPS (TTM): -0.02
• Shares Outstanding: 412,081,000
• 10 Day Avg. Volume: 3,600
• 30 Day Avg. Volume: 1,866
• PEG Ratio: 0.80
• Price to Book (P/B): 4.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.53
• 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

• Rating: 43 Neutral
• Price Target: ―

Central Development Holdings Limited exhibits significant financial difficulties, with high leverage and negative cash flow as key concerns. Despite positive short-term technical momentum, the overbought indicators suggest caution. The valuation is weak due to negative earnings, limiting appeal.

Central Development Holdings Limited Business Overview & Revenue Model

Company Description

Central Development Holdings Limited, an investment holding company, engages in the design, manufacture, and wholesale of fine jewelry products primarily in the People's Republic of China and Hong Kong. The company operates through Jewelry Business and Energy Business segments. It also manufactures and sells solar cooling intelligent technology products using thermal cooling-stored pipes; sells solar photovoltaic modules and components, as well as new energy smart direct current inverters and power optimizers; and sells refined oil and liquefied natural gas. The company offers its jewelry products to jewelry distributors and retailers. The company was formerly known as Zhong Fa Zhan Holdings Limited and changed its name to Central Development Holdings Limited in October 2019. The company is headquartered in Wan Chai, Hong Kong. Central Development Holdings Limited is a subsidiary of Resources Rich Capital Limited.

How the Company Makes Money

Central Development Holdings Limited generates revenue primarily through its three main business segments: jewelry trading, energy, and property investment. The jewelry segment involves the design, sourcing, and sale of jewelry products, contributing a significant portion of the company's earnings through retail and wholesale channels. In the energy sector, the company engages in projects related to renewable energy and energy storage, earning income from the sale of energy solutions and services. The property investment segment generates revenue through rental income and capital appreciation from its portfolio of real estate investments. Strategic partnerships and investments in these sectors also play a crucial role in the company's overall revenue generation.

Central Development Holdings Limited Financial Statement Overview

Summary

Central Development Holdings Limited is experiencing significant financial challenges. The company faces revenue volatility, substantial losses, high leverage, and negative cash flow, indicating a need for strategic financial restructuring.

Income Statement

Central Development Holdings Limited has experienced significant revenue fluctuations, with a notable decline in 2024 compared to 2023. The gross profit margin remains low, highlighting operational inefficiencies. The TTM period shows negative EBIT and EBITDA margins, indicating ongoing operational losses. The net profit margin is substantially negative, reflecting continued financial struggles.

Balance Sheet

The company exhibits a high debt-to-equity ratio, indicating significant leverage and financial risk. Stockholders' equity has decreased sharply, leading to a low equity ratio, which raises concerns about financial stability. The return on equity is negative, reflecting the company's inability to generate positive returns for shareholders.

Cash Flow

Operating cash flow has turned negative in recent periods, which, combined with negative free cash flow, suggests liquidity challenges. The ratio of operating cash flow to net income is unfavorable, indicating that cash generation from operations is insufficient to cover net losses.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	184.58M	188.55M	247.89M	193.11M	56.22M	110.64M
Gross Profit	10.05M	7.74M	4.64M	8.21M	2.18M	3.84M
EBITDA	-23.45M	-13.45M	-455.00K	-1.90M	-15.67M	-28.39M
Net Income	-28.43M	-31.05M	-11.91M	-13.98M	-24.61M	-33.48M
Balance Sheet
Total Assets	282.03M	259.32M	256.01M	242.04M	235.12M	151.87M
Cash, Cash Equivalents and Short-Term Investments	20.46M	16.29M	13.12M	20.09M	37.30M	37.32M
Total Debt	189.97M	170.43M	149.79M	149.46M	140.94M	105.71M
Total Liabilities	246.41M	231.49M	201.60M	187.12M	181.80M	130.22M
Stockholders Equity	10.77M	3.94M	29.86M	24.20M	22.79M	27.62M
Cash Flow
Free Cash Flow	-32.67M	-10.10M	8.40M	-28.50M	-3.40M	-17.13M
Operating Cash Flow	-32.61M	-9.98M	9.14M	-28.17M	-1.01M	-16.79M
Investing Cash Flow	-8.00K	-70.00K	-1.65M	-94.00K	-22.39M	-33.10M
Financing Cash Flow	32.91M	13.71M	-13.17M	9.65M	19.76M	24.35M

Central Development Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0475, the sentiment is Positive. The current price of 0.58 is above the 20-day moving average (MA) of 0.55, above the 50-day MA of 0.55, and above the 200-day MA of 0.54, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 82.55 is Negative, neither overbought nor oversold. The STOCH value of 63.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0475.

Central Development Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0836	72 Outperform	$98.36B	6.41	15.59%	7.27%	1.89%	29.67%
0991	71 Outperform	HK$54.92B	11.15	17.92%	0.41%	-1.05%	―
2883	68 Neutral	$55.82B	9.09	7.81%	3.87%	7.72%	2.35%
0386	67 Neutral	$701.56B	11.09		3.70%	-7.72%	-26.66%
0357	54 Neutral	$5.05B	―	-9.14%	―	2.04%	-176.61%
Sector *	52 Neutral	C$2.91B	-0.88	-3.26%	6.30%	2.20%	-43.43%
0475	43 Neutral	HK$259.61M	―	-212.93%	―	-9.07%	-55.96%

Central Development Holdings Limited Corporate Events

Central Development Holdings Appoints New Auditor Amid Fee Dispute

Central Development Holdings Limited, listed on the Stock Exchange of Hong Kong, has announced a change in its auditing firm. Deloitte Touche Tohmatsu resigned as the company’s auditor due to a disagreement over audit fees, with no other disputes cited. Prism Hong Kong Limited has been appointed as the new auditor, with the Board and Audit Committee confident that Prism’s experience and proposed audit fee are suitable for the company’s needs. The change is not expected to impact the annual audit for the financial year ending March 2025.