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

• Market Cap: HK$1.57B
• Dividend Yield: 11.06%
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.63
• Revenue Growth: -19.65%
• EPS Growth: -81.68%
• Country: HK
• Employees: 7,857
• Sector: Industrials
• Sector Strength: 72
• Industry: Real Estate - Services
• EPS (TTM): 0.00
• Shares Outstanding: 7,408,560,000
• 10 Day Avg. Volume: 4,624,400
• 30 Day Avg. Volume: 2,247,200
• PEG Ratio: -0.22
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.48
• P/FCF Ratio: -152.09
• 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: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.22 ▲(0.45% Upside)

The overall stock score reflects significant financial challenges, with declining revenue and profit margins, increased leverage, and weak cash flow generation. Technical indicators are mixed, and while the stock's high P/E ratio suggests potential overvaluation, the attractive dividend yield offers some compensation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Business Model Strength

The diversified business model across technology parks and real estate development provides a stable revenue base and potential for growth in tech-driven sectors.

Market Position

Strong market position in high-tech industrial parks supports long-term growth by attracting technology enterprises and fostering innovation.

Revenue Streams

Diverse revenue streams from leasing and property sales in technology parks provide resilience against economic fluctuations.

Negative Factors

Revenue Decline

Declining revenue indicates potential challenges in market demand or competitive pressures, affecting long-term growth prospects.

Increased Leverage

Higher leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Weak Cash Flow

Weak cash flow generation poses liquidity risks and may hinder the company's ability to sustain operations and invest in future growth.

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

The company generates revenue through multiple streams, primarily from the sale of its optical communication products and electronic components. Key revenue streams include direct sales to telecommunications companies, government contracts, and partnerships with other technology firms for joint product development. Additionally, China Electronics Optics Valley Union Holding Co., Ltd. benefits from long-term contracts and bulk orders, which provide a stable income base. Strategic collaborations with major players in the electronics sector further enhance its market presence and contribute to its financial performance.

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

Summary

The company is facing significant financial challenges with declining revenue and profit margins, increased leverage, and weak cash flow generation. These factors indicate 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.60B	3.59B	5.22B	5.52B	4.53B	3.05B
Gross Profit	1.10B	1.10B	1.56B	1.56B	1.30B	937.81M
EBITDA	752.66M	620.53M	1.39B	1.14B	839.47M	715.69M
Net Income	79.91M	95.75M	506.71M	536.09M	640.20M	464.34M
Balance Sheet
Total Assets	23.05B	23.34B	23.47B	22.38B	21.31B	19.43B
Cash, Cash Equivalents and Short-Term Investments	1.49B	1.65B	1.89B	2.27B	2.41B	2.17B
Total Debt	9.32B	8.61B	8.10B	7.77B	6.66B	6.51B
Total Liabilities	14.17B	14.47B	14.58B	13.50B	12.80B	11.43B
Stockholders Equity	7.99B	7.99B	8.07B	7.75B	7.39B	6.88B
Cash Flow
Free Cash Flow	184.06M	-11.36M	350.44M	103.46M	112.26M	77.04M
Operating Cash Flow	216.23M	29.39M	406.68M	194.79M	155.68M	98.69M
Investing Cash Flow	77.83M	15.89M	-104.58M	-19.43M	305.80M	-69.22M
Financing Cash Flow	-800.32M	-316.14M	-667.15M	-77.34M	-430.68M	460.14M

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

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0798, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.23, and below the 200-day MA of 0.23, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.06 is Neutral, neither overbought nor oversold. The STOCH value of 30.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1502	68 Neutral	HK$758.20M	6.37	8.63%	8.44%	16.65%	-8.74%
6989	66 Neutral	HK$1.00B	3.16	7.55%	16.21%	-0.79%	-3.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2215	53 Neutral	HK$266.19M	7.80	4.11%	―	-7.17%	-22.01%
0798	52 Neutral	HK$1.57B	18.31	1.01%	11.06%	-19.65%	-81.68%
0183	45 Neutral	HK$97.51M	-1.47	-4.91%	―	30.19%	72.49%

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

China Electronics Optics Valley Union Faces Temporary Governance Non-Compliance After INED Resignation

China Electronics Optics Valley Union Holding Company Limited announced that independent non-executive director Qi Liang has resigned from the board, as well as from his roles as chairman of the remuneration committee and member of the audit committee, effective 18 December 2025 due to changes in his work arrangements. His departure leaves the company temporarily non-compliant with Hong Kong Listing Rules on the minimum number and proportion of independent non-executive directors and on the required composition of its audit and remuneration committees, prompting the company to begin searching for a suitable replacement independent director and committee member to restore full compliance as soon as practicable, with further announcements to follow when an appointment is made.

The most recent analyst rating on (HK:0798) stock is a Hold with a HK$0.22 price target. To see the full list of analyst forecasts on China Electronics Optics Valley Union Holding Co., Ltd. stock, see the HK:0798 Stock Forecast page.

China Electronics Optics Valley Union Details Board and Committee Structure

China Electronics Optics Valley Union Holding Company Limited has announced the current composition of its board of directors, detailing the roles of non-executive, independent non-executive and executive members, with Liu Bo serving as chairman and Huang Liping as president and executive director. The company has also set out the membership of its three key board committees — audit, remuneration and nomination — indicating the chairpersons and members for each, a move that clarifies its corporate governance structure and delineates oversight responsibilities for investors and other stakeholders.

The most recent analyst rating on (HK:0798) stock is a Hold with a HK$0.22 price target. To see the full list of analyst forecasts on China Electronics Optics Valley Union Holding Co., Ltd. stock, see the HK:0798 Stock Forecast page.