Chinese People Holdings Co. Ltd. (0681) AI Stock Analysis

• Market Cap: HK$312.71M
• Dividend Yield: N/A
• Average Volume (3M): 4.69M
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.56
• Revenue Growth: -3.63%
• EPS Growth: N/A
• Country: HK
• Employees: 5,000
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): <0.01
• Shares Outstanding: 8,934,561,000
• 10 Day Avg. Volume: 5,879,300
• 30 Day Avg. Volume: 4,692,401
• PEG Ratio: -0.13
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 16.25
• 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: 62 Neutral
• Price Target: HK$0.04 ▼(-5.00% Downside)

The overall stock score of 62 reflects a balanced view of Chinese People Holdings Co. Ltd. The company's strong balance sheet and reasonable valuation are positive factors. However, financial performance is mixed with profitability and cash flow challenges. Technical analysis indicates strong momentum but warns of potential overbought conditions.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Solid Capital Structure

A high equity ratio indicates a robust capital structure, providing a cushion against financial distress and supporting long-term strategic initiatives.

Improved Net Profit Margin

An improved net profit margin reflects better cost management and operational efficiency, contributing to enhanced profitability over the long term.

Negative Factors

Profitability Challenges

Ongoing pressure on profitability margins may hinder the company's ability to generate sustainable earnings, affecting long-term financial health.

Cash Flow Challenges

Zero free cash flow indicates potential liquidity issues, which could limit the company's ability to fund operations and growth initiatives without external financing.

Declining Gross Profit Margin

A declining gross profit margin suggests increased cost pressures or pricing challenges, potentially impacting long-term profitability and competitive positioning.

Chinese People Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

Chinese People Holdings Company Limited, an investment holding company, engages in the piped gas transmission and distribution, cylinder gas supply, gas distribution, and FMCG and food ingredients supply businesses in the People's Republic of China. The company's Piped Gas Transmission and Distribution segment sells piped gas and construction of gas pipeline networks under gas connection contracts. Its Cylinder Gas Supply segment distributes and sells gas using tank containers to end-user households, and industrial and commercial customers. The company's Gas Distribution segment sells natural gas to industrial and commercial customers. Its FMCG and Food Ingredients Supply segment wholesales and retails merchandise, including rice, meat, and fresh food, as well as FMCG through supermarkets and convenience stores. The company was formerly known as Chinese People Gas Holdings Company Limited and changed its name to Chinese People Holdings Company Limited in 2007. Chinese People Holdings Company Limited was incorporated in 1996 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

The company generates revenue through multiple streams, including investment returns from its portfolio of financial assets, rental income from its real estate holdings, and service fees from technology solutions provided to clients. Key revenue streams include capital appreciation from equities and securities, consistent cash flow from leasing properties, and earnings from technology consulting services. Significant partnerships with financial institutions and technology firms enhance its market reach and operational capabilities, contributing to stable earnings.

Chinese People Holdings Co. Ltd. Financial Statement Overview

Summary

Chinese People Holdings Co. Ltd. shows a mixed financial performance. Positive elements include strong equity and low leverage providing financial stability. However, profitability margins are under pressure, and recent cash flow challenges pose liquidity risks. Revenue growth is moderate, and while there's an improvement over last year's losses, the company needs to address margin and cash flow issues to strengthen its financial health further.

Income Statement

The company demonstrated a mixed performance in its income statement. The gross profit margin for 2024 was approximately 11.5%, reflecting a decrease compared to earlier years. The net profit margin improved to 0.58%, recovering from negative figures in 2023. However, the revenue growth rate was 4.8% from 2023 to 2024, indicating moderate growth. EBIT and EBITDA margins were 1.78% and 4.07%, respectively, showing a decline from previous years. Overall, the company is recovering from a challenging year in 2023 but still faces margin pressure.

Balance Sheet

The balance sheet remains strong with a debt-to-equity ratio of 0.04, indicating low leverage. The equity ratio is 74.8%, showcasing a solid capital structure with high equity relative to total assets. Return on equity for 2024 was 0.61%, highlighting an improvement from negative returns in 2023. The company maintains a healthy financial position with strong equity and low debt levels, providing stability despite recent profitability challenges.

Cash Flow

The cash flow statement reflects challenges, as free cash flow was reported at zero for 2024, indicating no cash generation from operations after capital expenditures. The previous period saw a significant drop in free cash flow, and no operating cash flow was available for 2024. This could pose liquidity risks if the situation persists. The operating cash flow to net income ratio was unavailable for the latest year, reflecting potential operational inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.50B	2.63B	2.51B	2.87B	2.73B	2.33B
Gross Profit	284.92M	303.06M	312.59M	290.01M	382.65M	382.17M
EBITDA	96.96M	107.17M	-132.21M	91.57M	153.75M	172.39M
Net Income	36.11M	15.32M	-231.75M	35.66M	167.78M	143.87M
Balance Sheet
Total Assets	3.39B	3.37B	3.35B	3.60B	3.58B	3.54B
Cash, Cash Equivalents and Short-Term Investments	741.44M	704.61M	621.10M	555.12M	576.57M	614.87M
Total Debt	92.01M	102.93M	101.67M	100.82M	118.42M	124.15M
Total Liabilities	586.19M	622.72M	634.55M	620.61M	642.46M	710.31M
Stockholders Equity	2.58B	2.52B	2.50B	2.75B	2.70B	2.59B
Cash Flow
Free Cash Flow	13.97M	13.43M	89.40M	17.86M	31.61M	211.48M
Operating Cash Flow	59.03M	108.86M	194.92M	86.47M	163.80M	327.39M
Investing Cash Flow	-17.80M	104.65M	-325.37M	-62.74M	-153.12M	230.84M
Financing Cash Flow	-28.47M	-27.63M	-31.63M	-43.77M	-50.38M	-107.47M

Chinese People Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 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:0681, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.20 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0681.

Chinese People Holdings Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2886	67 Neutral	HK$1.58B	7.68	8.96%	6.91%	-16.94%	-22.17%
9908	66 Neutral	HK$1.14B	6.06	15.50%	5.30%	3.23%	2.73%
1940	66 Neutral	HK$1.16B	7.13	9.25%	―	-3.67%	38.19%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
0681	62 Neutral	HK$312.71M	8.14	1.42%	―	-3.63%	―
6828	48 Neutral	HK$773.03M	8.68	6.00%	―	4.42%	-24.00%
1265	45 Neutral	HK$334.75M	-5.87	-3.93%	―	-11.42%	65.17%

Chinese People Holdings Co. Ltd. Corporate Events

Chinese People Holdings Renews Natural Gas Supply Agreement

Chinese People Holdings Co. Ltd. has announced the renewal of its Natural Gas Supply Agreement with Shaanxi Natural Gas for the period of 2026-2028. The agreement outlines pricing policies based on government-prescribed or guided prices, tendering processes, and market prices, ensuring that transactions are conducted on normal commercial terms. The company has implemented internal control procedures to monitor these transactions, aiming to maintain fairness and compliance with relevant agreements. This renewal is expected to reinforce the company’s operational stability and strengthen its market position in the natural gas sector.

The most recent analyst rating on (HK:0681) stock is a Hold with a HK$0.04 price target. To see the full list of analyst forecasts on Chinese People Holdings Co. Ltd. stock, see the HK:0681 Stock Forecast page.

Chinese People Holdings Renews Natural Gas Supply Agreement for 2026-2028

Chinese People Holdings Co. Ltd. has announced the renewal of its Natural Gas Supply Agreement with Shaanxi Natural Gas for the period of 2026-2028. This agreement, which involves the purchase of natural gas by Xi’an Civigas, a subsidiary of Chinese People Holdings, is set to continue the existing connected transactions under normal commercial terms. The agreement is exempt from certain regulatory requirements due to its nature as a transaction between connected persons at the subsidiary level. This renewal ensures the continuation of natural gas supply, providing stability and predictability for the company’s operations and stakeholders.

Chinese People Holdings Announces Asset Acquisition with Significant Discount

Chinese People Holdings Company Limited has announced a discloseable transaction involving the acquisition of assets valued at RMB23,800,000. The purchase price reflects a negotiated discount of approximately 23.4% from the assets’ net book value, which was RMB31,271,000. The company believes this acquisition is in the best interests of its shareholders, despite not being able to provide specific financial information related to the assets due to allocation challenges.

Chinese People Holdings Co. Ltd. Announces Acquisition of Gas Assets in Chongqing

Chinese People Holdings Co. Ltd. announced that its subsidiary, Chongqing Civigas Co, Ltd, has entered into an agreement to acquire pipeline gas transmission and distribution assets from Chongqing Tongnan District Huimin Gas Co, Ltd. for RMB23,800,000. This acquisition, classified as a discloseable transaction under the Hong Kong Listing Rules, involves assets located in Tongnan District, Chongqing, and is expected to enhance the company’s operational capabilities in the region.