JiaHua Stores Holdings Limited (0602) AI Stock Analysis

• Market Cap: HK$53.95M
• Dividend Yield: N/A
• Average Volume (3M): 167.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -13.59%
• EPS Growth: 76.48%
• Country: HK
• Employees: 582
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): >-0.01
• Shares Outstanding: 1,037,500,000
• 10 Day Avg. Volume: 129,500
• 30 Day Avg. Volume: 167,833
• PEG Ratio: <0.01
• Price to Book (P/B): -0.50
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 0.31
• 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: 39 Underperform
• Price Target: HK$0.05 ▼(-25.00% Downside)

The overall stock score reflects significant financial challenges, including negative equity and consistent net losses. Technical indicators suggest a bearish trend, and valuation metrics are poor due to negative earnings. These factors collectively result in a low stock score.

Positive Factors

Cash Generation Ability

Improved operating cash flow indicates strong cash generation capabilities, which can support ongoing operations and potential investments.

Revenue Growth

Positive revenue growth suggests the company is expanding its market presence and product offerings, which could enhance long-term profitability.

Cost Management

Improved gross profit margin reflects better cost management, which can lead to enhanced profitability and competitive pricing strategies.

Negative Factors

Financial Stability

Negative equity and net losses indicate financial instability, posing risks to long-term viability and limiting strategic flexibility.

Profitability Challenges

Negative profit margins and EBIT suggest ongoing operational challenges, which could hinder future growth and investment capacity.

Balance Sheet Health

A weak balance sheet with negative equity indicates potential solvency issues, affecting the company's ability to secure financing and invest in growth.

JiaHua Stores Holdings Limited Business Overview & Revenue Model

Company Description

JiaHua Stores Holdings Limited (0602) is a retail company based in Hong Kong that operates a diverse portfolio of stores, primarily focusing on the sale of household goods, personal care products, and food items. The company targets the daily needs of consumers through its various retail formats, including convenience stores and supermarkets, and aims to provide quality products at competitive prices to enhance customer satisfaction.

How the Company Makes Money

JiaHua Stores Holdings Limited generates revenue through the sale of a wide range of consumer products in its retail outlets. The company's primary revenue stream comes from the direct sale of goods, including household essentials, grocery items, and personal care products. Additionally, the company may benefit from supplier partnerships that provide promotional allowances or incentives for featuring specific products in their stores. The strategic selection of store locations in high-traffic areas also contributes to increased footfall and sales volume, enhancing overall profitability. Seasonal promotions and loyalty programs may further drive customer retention and spending, solidifying the company's financial performance.

JiaHua Stores Holdings Limited Financial Statement Overview

Summary

JiaHua Stores Holdings Limited faces significant financial challenges, with negative net profit margins and negative equity indicating insolvency risks. Despite some revenue growth and improved cash flow, the high leverage and consistent net losses highlight financial instability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	348.72M	378.90M	353.97M	335.27M	434.24M	428.06M
Gross Profit	224.30M	227.78M	178.42M	166.39M	199.75M	218.80M
EBITDA	72.48M	74.29M	6.41M	48.74M	71.63M	-9.40M
Net Income	-33.84M	-55.73M	-152.58M	-103.92M	-100.11M	-194.46M
Balance Sheet
Total Assets	779.60M	809.75M	897.38M	896.43M	1.03B	1.19B
Cash, Cash Equivalents and Short-Term Investments	40.83M	25.09M	40.00M	66.17M	26.11M	76.62M
Total Debt	562.31M	586.94M	632.48M	574.82M	566.89M	605.78M
Total Liabilities	852.08M	878.64M	910.54M	765.02M	786.04M	852.71M
Stockholders Equity	-72.48M	-68.89M	-13.17M	131.41M	239.31M	339.42M
Cash Flow
Free Cash Flow	131.58M	108.95M	76.31M	62.81M	23.96M	-1.50M
Operating Cash Flow	156.96M	142.28M	107.67M	72.41M	69.84M	77.77M
Investing Cash Flow	-22.87M	-32.13M	-34.65M	-10.74M	-41.88M	-58.45M
Financing Cash Flow	-130.60M	-125.06M	-99.19M	-21.61M	-78.47M	-40.43M

JiaHua Stores Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 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:0602, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.26 is Neutral, neither overbought nor oversold. The STOCH value of 39.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0825	50 Neutral	HK$455.26M	18.67	0.76%	―	-12.99%	89.87%
0984	46 Neutral	HK$106.60M	-0.28	―	―	-3.03%	-36.45%
0162	43 Neutral	HK$51.74M	-0.08	-110.16%	―	-17.63%	-13.10%
0312	42 Neutral	HK$236.99M	-10.76	-2.41%	―	-0.83%	93.83%
0602	39 Underperform	HK$53.95M	-1.42	―	―	-13.59%	76.48%

JiaHua Stores Holdings Limited Corporate Events

JiaHua Stores Signs Connected Lease to Monetise Surplus Shenzhen Office Space

JiaHua Stores Holdings Limited has entered into a three-year lease agreement under which its subsidiary BJH Department Stores will lease a portion of office premises in Shenzhen to related party JH Real Estate from 1 January 2026 to 31 December 2028, at a monthly rent of RMB67,072.43, with proposed annual caps of RMB1 million for each of the three years. Classified as a de minimis continuing connected transaction under Hong Kong listing rules, the arrangement is subject only to reporting and announcement requirements, and management emphasizes that the deal was negotiated at arm’s length, is in the ordinary course of business, optimizes underutilized office space, and provides incremental rental income and cash flow while being overseen by an independent board committee to safeguard minority shareholders’ interests.

The most recent analyst rating on (HK:0602) stock is a Sell with a HK$0.04 price target. To see the full list of analyst forecasts on JiaHua Stores Holdings Limited stock, see the HK:0602 Stock Forecast page.