China Electronics Optics Valley Union Holding Co., Ltd. (0798) AI Stock Analysis

• Market Cap: HK$1.84B
• Dividend Yield: 10%
• Average Volume (3M): 4.31M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.52
• Revenue Growth: -32.35%
• EPS Growth: -81.02%
• Country: HK
• Employees: 7,857
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Services
• EPS (TTM): 0.01
• Shares Outstanding: 7,512,324,000
• 10 Day Avg. Volume: 8,658,833
• 30 Day Avg. Volume: 4,310,811
• PEG Ratio: 1.08
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.28
• 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: 51 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score of 51 reflects significant financial challenges, including declining revenue and profit margins, increased leverage, and weak cash flow generation. While technical indicators show some short-term upward momentum, the overbought condition suggests caution. The valuation is attractive due to a reasonable P/E ratio and high dividend yield, providing some upside potential despite the financial difficulties.

China Electronics Optics Valley Union Holding Co., Ltd. Business Overview & Revenue Model

Company Description

China Electronics Optics Valley Union Holding Company Limited engages in the property development business in the People's Republic of China. It operates through three segments: Industrial Park Development Services, Industrial Park Operation Services, and Industrial Investment. The Industrial Park Development Services segment develops and sells industrial parks and ancillary residential properties. The Industrial Park Operation Services segment constructs office and residential buildings; provides design and construction services for the projects under construction; and offers property management, energy, financing, and other services for industrial parks. The Industrial Investment segment invests in various theme parks. The company also provides energy-saving technique development, investment fund, and exhibition related services. The company was formerly known as Optics Valley Union Holding Company Limited and changed its name to China Electronics Optics Valley Union Holding Company Limited in October 2016. China Electronics Optics Valley Union Holding Company Limited was incorporated in 2013 and is headquartered in Wuhan, the People's Republic of China.

How the Company Makes Money

China Electronics Optics Valley Union Holding Co., Ltd. generates its revenue primarily through its real estate operations, which include leasing and selling industrial and commercial properties. The company capitalizes on the strategic positioning of its industrial parks, attracting technology companies and startups that benefit from the proximity to innovation hubs. Additionally, the company benefits from partnerships with local governments and technology firms, which enhance its ability to attract high-quality tenants and maintain high occupancy rates. Revenue is further supplemented by property management services and ancillary services provided to tenants within its industrial parks.

China Electronics Optics Valley Union Holding Co., Ltd. Financial Statement Overview

Summary

The company is facing significant financial challenges with fluctuating revenue and declining profit margins. Increasing leverage and negative cash flow are additional concerns, indicating a need for improved operational efficiency and balance sheet management.

Income Statement

The company's revenue has fluctuated over the past few years, with a notable decline in 2024 compared to 2023. The gross profit margin remains relatively stable, but the net profit margin has decreased significantly, signaling potential challenges in cost management or revenue generation. EBIT and EBITDA margins have also declined, indicating weakened operational efficiency.

Balance Sheet

The company maintains a fair equity ratio, with stockholders' equity consistently representing a significant portion of total assets. However, the debt-to-equity ratio has increased, reflecting higher leverage and potential risk. ROE has declined, suggesting reduced profitability relative to shareholder investment.

Cash Flow

The cash flow situation is concerning, with negative free cash flow in 2024 suggesting challenges in generating sufficient cash from operations. The operating cash flow to net income ratio has been poor, indicating difficulties in converting income into cash. This highlights potential liquidity risks.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.59B	5.22B	5.52B	4.53B	3.05B
Gross Profit	1.10B	1.56B	1.56B	1.30B	937.81M
EBITDA	620.53M	1.39B	1.14B	839.47M	715.69M
Net Income	95.75M	506.71M	536.09M	640.20M	464.34M
Balance Sheet
Total Assets	23.34B	23.47B	22.38B	21.31B	19.43B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.89B	2.27B	2.41B	2.19B
Total Debt	8.61B	8.10B	7.77B	6.03B	6.51B
Total Liabilities	14.47B	14.58B	13.50B	12.80B	11.43B
Stockholders Equity	7.99B	8.07B	7.75B	7.39B	6.88B
Cash Flow
Free Cash Flow	-11.36M	350.44M	103.46M	112.26M	77.04M
Operating Cash Flow	29.39M	406.68M	194.79M	155.68M	98.69M
Investing Cash Flow	15.89M	-104.58M	-19.43M	305.80M	-69.22M
Financing Cash Flow	-316.14M	-667.15M	-77.34M	-430.68M	460.14M

China Electronics Optics Valley Union Holding Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0798, the sentiment is Positive. The current price of 0.25 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.21, and above the 200-day MA of 0.24, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 77.51 is Negative, neither overbought nor oversold. The STOCH value of 94.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0798.

China Electronics Optics Valley Union Holding Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6989	80 Outperform	HK$1.78B	5.27	8.56%	8.60%	5.84%	0.84%
1502	74 Outperform	HK$870.25M	6.92	9.14%	7.35%	13.57%	-11.39%
2215	61 Neutral	HK$624.16M	17.45	5.41%	―	-4.12%	-38.34%
0183	57 Neutral	HK$172.91M	―	-12.61%	―	11.40%	-9.26%
Sector *	53 Neutral	$1.19B	3.45	0.13%	7.12%	-2.13%	-128.06%
0798	51 Neutral	HK$1.84B	17.73	1.19%	10.00%	-32.35%	-81.02%
1755		HK$2.44B	4.88	15.76%	8.04%	―	―

China Electronics Optics Valley Union Holding Co., Ltd. Corporate Events

China Electronics Optics Valley Union Approves Key Resolutions at AGM

China Electronics Optics Valley Union Holding Co., Ltd. held its Annual General Meeting on June 19, 2025, where all proposed resolutions were passed by a significant majority. Key resolutions included the re-election of directors, authorization for the board to fix directors’ remuneration, and granting mandates for share repurchase and issuance. The appointment of Daxin Global (HK) CPA Limited as the new auditor was also approved. These decisions are expected to impact the company’s governance and operational strategies positively.

China Electronics Optics Valley Union Announces New Auditor Appointment

China Electronics Optics Valley Union Holding Co., Ltd. has announced a supplemental notice for its upcoming annual general meeting, adding a resolution to appoint Daxin Global (HK) CPA Limited as the new auditor. This move could potentially impact the company’s financial auditing processes and stakeholder confidence.

China Electronics Optics Valley Union Proposes Auditor Change to Enhance Governance

China Electronics Optics Valley Union Holding Co., Ltd. announced a proposed change of auditor, with PricewaterhouseCoopers set to retire and Daxin Global (HK) CPA Limited recommended as the new auditor. This change aims to enhance auditor independence, improve corporate governance, and reduce audit costs by consolidating audit services across platforms, benefiting the company and its shareholders.

China Electronics Optics Valley Union Announces 2025 AGM Agenda

China Electronics Optics Valley Union Holding Co., Ltd. has announced its upcoming Annual General Meeting scheduled for June 19, 2025, in Shenzhen, PRC. Key agenda items include the presentation of the audited financial statements for 2024, re-election of directors, and granting mandates to the board for share repurchase and issuance. These resolutions, if passed, could impact the company’s governance and financial strategies, potentially influencing shareholder value and market perception.