Hongkong Chinese Limited (0655) AI Stock Analysis

• Market Cap: HK$569.51M
• Dividend Yield: 3.33%
• Average Volume (3M): 405.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: 1.62%
• EPS Growth: -63.95%
• Country: HK
• Employees: 23
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.10
• Shares Outstanding: 1,998,280,000
• 10 Day Avg. Volume: 392,946
• 30 Day Avg. Volume: 405,336
• PEG Ratio: <0.01
• Price to Book (P/B): 0.06
• Price to Sales (P/S): 7.82
• P/FCF Ratio: -19.08
• 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: 49 Neutral
• Price Target: HK$0.50 ▲(66.67% Upside)

The overall stock score is primarily impacted by financial performance challenges, including fluctuating revenue and negative cash flows. Technical analysis provides some positive momentum signals, but valuation concerns with a negative P/E ratio weigh heavily. The attractive dividend yield offers some compensation for the risks.

Hongkong Chinese Limited Business Overview & Revenue Model

Company Description

Hongkong Chinese Limited, an investment holding company, engages in property investment and development, project management, healthcare services, and hotel operations. Its Property Investment segment engages in the letting and resale of properties. The company's Property Development segment develops and sells properties. Its Treasury Investment segment invests in money markets. The company's Securities Investment segment is involved in the investment in securities held for trading. Its Other segment engages in the provision of project management services. The company also owns a motor yacht. It has operations in Hong Kong, Mainland China, Singapore, Indonesia, and internationally. The company was founded in 1992 and is based in Hong Kong, Hong Kong. Hongkong Chinese Limited is a subsidiary of Hennessy Holdings Limited.

How the Company Makes Money

Hongkong Chinese Limited generates revenue through multiple streams, primarily from the sale of its food products to retailers and food service providers. The company has established partnerships with various supermarkets and restaurants, enabling the distribution of its products across a broad customer base. Additionally, the company engages in export activities, sending its products to international markets, which further diversifies its revenue sources. The focus on innovation, such as the development of new product lines and investment in marketing initiatives, also plays a crucial role in driving sales and enhancing brand visibility, contributing to the overall financial performance of the company.

Hongkong Chinese Limited Financial Statement Overview

Summary

The company's financial performance is challenged by fluctuating revenue and profitability. Despite a strong equity position, increasing leverage and negative cash flows indicate potential financial instability.

Income Statement

The company has experienced fluctuating revenue with a decline from 2020 to recent years. Despite a strong gross profit margin consistently above 90%, the net profit margin is volatile, with significant losses in certain years. Recent EBIT and EBITDA margins show profitability, but the overall declining revenue and net losses pose risks.

Balance Sheet

The company's balance sheet demonstrates strong equity, with a very high equity ratio indicating financial stability. However, the debt-to-equity ratio has been increasing, suggesting rising leverage which could pose future risks if not managed carefully.

Cash Flow

The cash flow situation appears concerning, with consistent negative free cash flow and operating cash flow over recent years. This indicates potential liquidity issues and challenges in generating cash internally to sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.21M	72.84M	74.79M	71.77M	81.09M	121.03M
Gross Profit	71.96M	70.61M	71.91M	70.03M	76.75M	67.45M
EBITDA	43.94M	40.27M	24.80M	508.85M	672.77M	19.08M
Net Income	-578.82M	-1.20B	157.12M	488.77M	670.30M	-1.11B
Balance Sheet
Total Assets	10.37B	9.55B	11.16B	11.22B	11.57B	11.09B
Cash, Cash Equivalents and Short-Term Investments	98.44M	97.39M	145.68M	207.68M	132.90M	209.61M
Total Debt	533.47M	501.47M	465.94M	456.64M	272.81M	275.94M
Total Liabilities	594.39M	563.30M	529.09M	522.96M	349.42M	401.05M
Stockholders Equity	9.76B	8.97B	10.61B	10.68B	11.20B	10.67B
Cash Flow
Free Cash Flow	-80.58M	-29.86M	-44.17M	-34.59M	12.72M	-35.23M
Operating Cash Flow	-80.01M	-27.01M	-42.41M	-33.83M	13.26M	-34.77M
Investing Cash Flow	-370.00K	-2.65M	-1.46M	-1.76M	-41.32M	352.26M
Financing Cash Flow	44.87M	-16.86M	-17.09M	127.35M	-50.26M	-260.24M

Hongkong Chinese Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0655, the sentiment is Negative. The current price of 0.3 is above the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.30, and above the 200-day MA of 0.29, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.15 is Neutral, neither overbought nor oversold. The STOCH value of 17.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0655.

Hongkong Chinese 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%
0225	52 Neutral	HK$664.38M	-3.08	-4.79%	6.05%	6.17%	63.88%
1036	51 Neutral	HK$701.15M	-5.68	-2.93%	3.33%	178.97%	-2829.91%
0089	51 Neutral	HK$667.39M	-1.77	-4.58%	3.60%	-4.31%	19.29%
0655	49 Neutral	HK$569.51M	-0.98	-6.19%	3.33%	1.62%	-63.95%
0727	45 Neutral	HK$286.16M	-42.65	-7.00%	―	-49.07%	94.90%
0367	39 Underperform	HK$551.94M	-0.93	-7.61%	―	-7.97%	19.98%

Hongkong Chinese Limited Corporate Events

Hongkong Chinese Limited Updates Audit Committee Terms

Hongkong Chinese Limited has revised the terms of reference for its Audit Committee, which is composed of non-executive directors, emphasizing the importance of independent oversight. The committee is tasked with key responsibilities such as recommending the appointment and removal of external auditors, ensuring their independence, and monitoring the integrity of financial statements. This revision aims to enhance the governance framework and ensure rigorous financial oversight, potentially impacting the company’s transparency and accountability to stakeholders.

The most recent analyst rating on (HK:0655) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hongkong Chinese Limited stock, see the HK:0655 Stock Forecast page.

Hongkong Chinese Limited Updates Nomination Committee Terms

Hongkong Chinese Limited has revised the terms of reference for its Nomination Committee, which is responsible for reviewing and recommending changes to the company’s board structure, size, and composition. The committee also identifies and assesses candidates for board positions, ensuring alignment with the company’s Board Diversity Policy and compliance with the Listing Rules. This revision aims to enhance corporate governance by focusing on board diversity, succession planning, and the effective contribution of directors.

The most recent analyst rating on (HK:0655) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hongkong Chinese Limited stock, see the HK:0655 Stock Forecast page.