JiaHua Stores Holdings Limited (0602) AI Stock Analysis

• Market Cap: HK$62.25M
• Dividend Yield: N/A
• Average Volume (3M): 3.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -13.59%
• EPS Growth: 76.48%
• Country: HK
• Employees: 582
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Department Stores
• EPS (TTM): >-0.01
• Shares Outstanding: 1,037,500,000
• 10 Day Avg. Volume: 730,750
• 30 Day Avg. Volume: 3,686,416
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score reflects significant financial challenges, with negative equity and ongoing losses being major concerns. Despite positive technical indicators suggesting short-term bullish momentum, the lack of profitability and unattractive valuation metrics weigh heavily on the stock's attractiveness.

Positive Factors

Cash Flow Improvement

Improved cash flow indicates better cash generation capabilities, which can support operations and investments, enhancing long-term stability.

Gross Profit Margin

An improved gross profit margin reflects better cost management, which can contribute to long-term profitability if sustained.

Revenue Growth

Positive revenue growth suggests increasing market demand and potential for expansion, which is crucial for long-term success.

Negative Factors

Negative Equity

Negative equity highlights financial instability, posing risks to long-term viability and limiting the company's ability to raise capital.

Profitability Challenges

Ongoing profitability issues indicate operational inefficiencies, which can hinder growth and sustainability if not addressed.

High Leverage

High leverage increases financial risk, potentially limiting strategic flexibility and increasing vulnerability to economic downturns.

JiaHua Stores Holdings Limited Business Overview & Revenue Model

Company Description

Jiahua Stores Holdings Limited, an investment holding company, operates and manages retail stores and other related businesses in the People's Republic of China. It also provides commercial factoring and supply chain financing services, as well as operates and manages shopping malls. In addition, the company operates and manages online sale. The company is headquartered in Kowloon, Hong Kong.

How the Company Makes Money

JiaHua Stores Holdings Limited generates revenue primarily through the sale of consumer products in its retail stores. The company's revenue model is centered around direct retail sales, where it profits from markups on products sold to consumers. Key revenue streams include the sale of groceries, toiletries, and other household items. Additionally, JiaHua Stores may engage in promotional partnerships with suppliers, which can provide additional income through co-marketing initiatives or supplier funding for promotional events. The company also benefits from economies of scale in procurement and logistics, enabling it to maintain competitive pricing and improve its profit margins.

JiaHua Stores Holdings Limited Financial Statement Overview

Summary

JiaHua Stores Holdings Limited faces significant financial challenges. Despite some revenue growth and improved cash flow, the company struggles with profitability and financial stability, evidenced by consistent net losses and negative equity. High leverage and insolvency risks are major concerns.

Income Statement

The company has shown some improvement in revenue growth, with a 7.05% increase from 2023 to 2024. However, profitability remains a significant concern as the net profit margin is negative, and EBIT is consistently negative, indicating operational challenges. The gross profit margin has improved to 60.11% in 2024, suggesting some efficiency in cost management, but the overall financial health is hampered by consistent net losses.

Balance Sheet

The balance sheet reveals a precarious financial position with negative stockholders' equity, indicating insolvency risks. The debt-to-equity ratio is not calculable due to negative equity, but the high total debt level relative to assets suggests significant leverage. The equity ratio is negative, further emphasizing financial instability. These factors highlight the company's vulnerability to financial distress.

Cash Flow

The cash flow statement shows a positive trend in operating cash flow, which increased to 142.28 million in 2024. Free cash flow has also improved significantly, indicating better cash generation capabilities. However, the free cash flow to net income ratio is not meaningful due to negative net income. While cash flow from operations is strong, the company faces challenges in translating this into profitability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	378.90M	353.97M	335.27M	434.24M	428.06M
Gross Profit	227.78M	178.42M	166.39M	199.75M	218.80M
EBITDA	74.29M	6.41M	48.74M	71.63M	-9.40M
Net Income	-55.73M	-152.58M	-107.90M	-100.11M	-194.46M
Balance Sheet
Total Assets	809.75M	897.38M	896.43M	1.03B	1.19B
Cash, Cash Equivalents and Short-Term Investments	25.09M	40.00M	66.17M	26.11M	76.62M
Total Debt	586.94M	632.48M	574.82M	566.89M	605.78M
Total Liabilities	878.64M	910.54M	765.02M	786.04M	852.71M
Stockholders Equity	-68.89M	-13.17M	131.41M	239.31M	339.42M
Cash Flow
Free Cash Flow	108.95M	76.31M	62.81M	23.96M	-1.50M
Operating Cash Flow	142.28M	107.67M	72.41M	69.84M	77.77M
Investing Cash Flow	-32.13M	-34.65M	-10.74M	-41.88M	-58.45M
Financing Cash Flow	-125.06M	-99.19M	-21.61M	-78.47M	-40.43M

JiaHua Stores Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.06
• 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:0602, the sentiment is Neutral. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.06, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.17 is Neutral, neither overbought nor oversold. The STOCH value of 29.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0602.

JiaHua Stores Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
0602	52 Neutral	HK$62.25M	―	-489.64%	―	-13.59%	76.48%
NWM	―	€55.51M	26.00	0.43%	―	―	―
AVK1	―	€12.39M	―		―	―	―
0162	41 Neutral	HK$57.48M	―	-110.16%	―	-17.63%	-13.10%
0244	―	HK$486.17M	―	-103.51%	―	―	―
0312	45 Neutral	HK$254.45M	―	-2.41%	―	-0.83%	93.83%

JiaHua Stores Holdings Limited Corporate Events

JiaHua Stores Holdings to Review Interim Results and Dividend

JiaHua Stores Holdings Limited has announced a forthcoming board meeting scheduled for August 28, 2025. The meeting will address the approval of the company’s unaudited interim results for the first half of the year and consider the payment of an interim dividend. This announcement indicates the company’s ongoing financial management and potential shareholder returns.

JiaHua Stores Secures Shareholder Approval at AGM

JiaHua Stores Holdings Limited announced the successful approval of all resolutions proposed at its Annual General Meeting held on June 11, 2025. The resolutions included the approval of the company’s audited financial statements for the year ending December 31, 2024, and the re-election of several directors. This outcome reflects strong shareholder support and is expected to provide stability in the company’s governance, potentially enhancing its market position and stakeholder confidence.