China Tangshang Holdings Limited. (0674) AI Stock Analysis

• Market Cap: HK$270.85M
• Dividend Yield: N/A
• Average Volume (3M): 257.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.21
• Revenue Growth: 10.80%
• EPS Growth: 70.76%
• Country: HK
• Employees: 21
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): >-0.01
• Shares Outstanding: 3,428,466,600
• 10 Day Avg. Volume: 88,000
• 30 Day Avg. Volume: 257,666
• PEG Ratio: 0.23
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.79
• P/FCF Ratio: -27.90
• 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: 44 Neutral
• Price Target: HK$0.07 ▼(-10.00% Downside)
• Action: Reiterated Date: 01/10/26
• Date: Action: Reiterated 01/10/26

The score is primarily weighed down by weak financial quality (loss-making operations, negative ROE, and sharply deteriorating free cash flow) and bearish technical signals (below major moving averages with negative MACD). Valuation provides limited support because the company is unprofitable (negative P/E) and no dividend yield is available.

Positive Factors

Revenue Growth

Sustained 24.09% revenue growth indicates durable top-line momentum and market demand. Over a 2-6 month horizon this supports scale benefits and provides a runway for management to convert volume into improved margins and operational leverage if cost structure is controlled.

Gross Margin Improvement

An improving gross profit margin points to better unit economics, pricing power, or cost efficiencies. This structural improvement is a key precursor to restoring EBIT and net margins and, if maintained, can sustainably enhance cash generation and profitability over the medium term.

Leverage Management Progress

A modest improvement in debt-to-equity and a stable equity ratio signal progress on leverage management and a balanced asset base. This strengthens financial flexibility, reduces near-term refinancing pressure, and supports strategic options like targeted investment or deleveraging over the coming months.

Negative Factors

Profitability Deficit

Negative net and EBIT margins and a negative ROE show the company is not converting revenue into sustainable profits or shareholder returns. Persisting profitability shortfalls undermine equity value, limit reinvestment capacity, and require substantive operational or strategic fixes to restore long-term viability.

Free Cash Flow Decline

A steep -71.02% decline in free cash flow and negative operating cash flow to net income indicate weak cash generation. This structural cash shortfall restricts capital expenditures, debt servicing, and strategic investments, raising reliance on external financing and heightening medium-term liquidity risk.

High Leverage Remains

Even with slight deleveraging, the company's leverage is still relatively high, increasing fixed obligations and interest sensitivity. Elevated debt levels constrain capital allocation, reduce resilience to revenue shocks, and raise refinancing and solvency risk in adverse market conditions.

China Tangshang Holdings Limited. Business Overview & Revenue Model

Company Description

China Tangshang Holdings Limited, an investment holding company, engages in the property investment, development, and sub-leasing activities in Hong Kong and the People's Republic of China. The company develops real estate properties; and sub-leases and leases investment properties. It also provides loans to customers, including individuals and corporations. The company was formerly known as Culture Landmark Investment Limited and changed its name to China Tangshang Holdings Limited in August 2017. China Tangshang Holdings Limited is headquartered in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

China Tangshang Holdings Limited generates revenue through multiple key streams primarily centered around the production and sale of ceramic tiles. The company sells its products to various distributors and retailers, contributing significantly to its income. Additionally, it earns revenue from property development projects and investments in the hospitality sector, which further diversify its income sources. Strategic partnerships with construction firms and real estate developers also play a crucial role in driving sales and expanding market reach. The company benefits from economies of scale in manufacturing and distribution, ensuring competitive pricing and profitability.

China Tangshang Holdings Limited. Financial Statement Overview

Summary

Strong revenue growth (24.09%) is a positive, but negative profitability (net and EBIT margins), negative ROE, high leverage, and a steep decline in free cash flow growth (-71.02%) indicate meaningful operational and cash generation weakness.

Income Statement

The company has shown a positive revenue growth rate of 24.09% in the latest year, indicating a strong top-line performance. However, profitability metrics such as the net profit margin and EBIT margin are negative, reflecting operational challenges and inefficiencies. The gross profit margin has improved compared to the previous year, but the overall profitability remains a concern.

Balance Sheet

The debt-to-equity ratio has improved slightly, indicating better leverage management, but it remains relatively high, suggesting potential financial risk. The return on equity is negative, highlighting the company's struggle to generate profits from shareholders' equity. The equity ratio is stable, indicating a balanced asset structure.

Cash Flow

The company experienced a significant decline in free cash flow growth, with a negative growth rate of -71.02%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Despite these issues, the free cash flow to net income ratio remains stable at 1.0, suggesting that the company is managing its cash flow relative to its net income effectively.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	132.02M	580.82M	877.47M	650.77M	256.89M	56.16M
Gross Profit	136.63M	110.53M	103.96M	198.77M	101.27M	31.91M
EBITDA	-60.06M	-80.26M	-130.82M	157.46M	84.28M	-24.04M
Net Income	-62.08M	-89.06M	-115.06M	30.37M	8.02M	-13.35M
Balance Sheet
Total Assets	2.11B	2.30B	3.12B	4.29B	1.96B	1.90B
Cash, Cash Equivalents and Short-Term Investments	94.92M	39.08M	152.66M	429.09M	213.78M	175.94M
Total Debt	496.45M	497.92M	619.03M	652.36M	639.11M	839.46M
Total Liabilities	1.29B	1.47B	2.21B	3.25B	1.36B	1.33B
Stockholders Equity	567.86M	570.64M	665.52M	801.83M	386.46M	364.95M
Cash Flow
Free Cash Flow	38.59M	-16.34M	-221.84M	357.21M	354.86M	-38.03M
Operating Cash Flow	38.59M	-16.34M	-221.84M	357.21M	355.10M	-31.18M
Investing Cash Flow	-24.61K	1.10K	25.66M	69.54M	6.77M	-236.51M
Financing Cash Flow	-67.29M	-86.54M	-59.97M	-154.35M	-280.89M	174.79M

China Tangshang Holdings Limited. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0674, the sentiment is Neutral. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.35 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0674.

China Tangshang Holdings Limited. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2165	74 Outperform	HK$537.09M	1.78	11.34%	―	5.01%	-31.83%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3662	63 Neutral	HK$294.13M	3.65	3.28%	6.60%	-14.43%	-77.55%
2107	51 Neutral	HK$269.25M	4.01	-4.06%	15.45%	6.30%	-128.34%
0674	44 Neutral	HK$270.85M	-5.32	-11.63%	―	10.80%	70.76%
9608	43 Neutral	HK$192.00M	7.72	2.06%	―	0.88%	-25.81%