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

• Market Cap: HK$1.75B
• Dividend Yield: 10.87%
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.56
• 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: 7,442,176,000
• 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 ▼(-3.91% Downside)

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 Co., Ltd. (0798) is a leading company in the electronics and optics sectors, primarily focusing on the development and manufacturing of high-tech products. The company operates within a diverse range of industries, including optical communication, electronic components, and precision instruments. Its core offerings include fiber optic cables, optical networking equipment, and various electronic devices, catering to both domestic and international markets.

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: Neutral
• Last Price: 0.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 0.23 is above the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.24, and below the 200-day MA of 0.23, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 58.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$814.23M	6.84	8.63%	8.36%	16.65%	-8.74%
6989	66 Neutral	HK$1.22B	3.86	7.55%	15.66%	-0.79%	-3.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2215	53 Neutral	HK$431.40M	12.63	4.11%	―	-7.17%	-22.01%
0798	52 Neutral	HK$1.75B	20.34	1.01%	10.87%	-19.65%	-81.68%
0183	45 Neutral	HK$95.24M	-1.43	-4.91%	―	30.19%	72.49%

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

China Electronics Optics Valley Union Reports Interim Results for 2025

China Electronics Optics Valley Union Holding Co., Ltd. announced its unaudited interim results for the six months ending June 30, 2025, reporting a slight increase in revenue to RMB 1,470,685,000 compared to the same period in 2024. Despite the revenue growth, the company’s profit for the period decreased to RMB 2,109,000, with a notable drop in profit attributable to owners of the company. The financial results indicate challenges in maintaining profitability, potentially impacting stakeholders’ confidence.

The most recent analyst rating on (HK:0798) stock is a Hold with a HK$0.50 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 Announces Upcoming Board Meeting

China Electronics Optics Valley Union Holding Co., Ltd. has announced a board meeting scheduled for August 26, 2025, to consider and approve the interim results for the first half of 2025 and discuss the potential payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns for shareholders.