Lianhua Supermarket Holdings Co (0980) AI Stock Analysis

• Market Cap: $614.03M
• Dividend Yield: N/A
• Average Volume (3M): 225.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -12.42%
• EPS Growth: 62.88%
• Country: HK
• Employees: 13,594
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 0.03
• Shares Outstanding: 372,600,000
• 10 Day Avg. Volume: 166,824
• 30 Day Avg. Volume: 225,331
• PEG Ratio: 0.02
• Price to Book (P/B): -1.19
• Price to Sales (P/S): 0.02
• P/FCF Ratio: 0.31
• Enterprise Value/Market Cap: 2.02
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.52
• Enterprise Value/Ebitda: -4.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: ―

Lianhua Supermarket Holdings Co has a low overall stock score driven by poor financial performance, including declining revenues and high leverage, which pose significant risks to its financial stability. While there is some positive technical momentum, the negative valuation metrics and lack of profitability further weigh down the stock's attractiveness.

Lianhua Supermarket Holdings Co Business Overview & Revenue Model

Company Description

Lianhua Supermarket Holdings Co (0980) is a prominent retail company in China, operating multiple supermarket chains across the country. The company is involved in the retail of a wide range of consumer goods, including groceries, fresh produce, household items, and personal care products. Lianhua Supermarket is known for its diverse store formats, ranging from hypermarkets to community stores, catering to various consumer needs and preferences.

How the Company Makes Money

Lianhua Supermarket Holdings Co primarily generates revenue through the sale of consumer goods in its retail stores. The company's key revenue streams include direct sales from its supermarkets, hypermarkets, and convenience stores. Lianhua may also engage in partnerships with suppliers and brands to optimize product offerings and pricing strategies. Additionally, the company might implement loyalty programs, promotions, and marketing initiatives to attract and retain customers, thereby driving sales volume. While specific financial data and partnership details are not available, the company's earnings are largely influenced by consumer spending patterns, supply chain efficiency, and competitive pricing strategies in the retail sector.

Lianhua Supermarket Holdings Co Financial Statement Overview

Summary

Lianhua Supermarket Holdings Co faces significant financial challenges, characterized by declining revenues, persistent losses, high leverage, and cash flow difficulties. These factors indicate potential risks to financial stability and operational sustainability, necessitating strategic interventions for improvement.

Income Statement

Lianhua Supermarket Holdings Co has been experiencing a declining revenue trend over the past few years, with a significant revenue drop from 2022 to 2023. The company also reports persistent net losses, leading to negative net profit margins. Gross profit margins have been decreasing, indicating potential cost management issues or pricing pressures. EBIT and EBITDA margins are negative, reflecting operational inefficiencies.

Balance Sheet

The company's balance sheet shows a negative stockholders' equity in the most recent year, indicating potential financial distress. The debt-to-equity ratio is not calculable due to negative equity, but the high level of debt relative to assets suggests leverage concerns. The equity ratio is negative, further highlighting the company's financial instability.

Cash Flow

Lianhua Supermarket Holdings Co's cash flow statements show no operating cash flow or free cash flow in the latest year, which is concerning for liquidity. Previous years show declining free cash flow trends, and the inability to generate positive cash flow from operations in recent periods raises sustainability issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.71B	21.84B	24.68B	24.76B	26.33B
Gross Profit	2.37B	2.78B	3.38B	3.06B	3.54B
EBITDA	-304.53M	979.96M	1.65B	1.46B	261.63M
Net Income	-358.76M	-791.32M	-206.53M	-422.78M	-319.29M
Balance Sheet
Total Assets	19.66B	20.99B	22.93B	22.83B	23.22B
Cash, Cash Equivalents and Short-Term Investments	4.94B	4.37B	5.85B	4.00B	2.44B
Total Debt	4.33B	5.14B	6.00B	6.65B	7.12B
Total Liabilities	19.59B	20.54B	21.74B	21.58B	21.47B
Stockholders Equity	-286.64M	72.13M	818.14M	1.03B	1.45B
Cash Flow
Free Cash Flow	1.12B	628.65M	1.50B	574.97M	1.61B
Operating Cash Flow	1.26B	831.98M	1.74B	995.60M	1.93B
Investing Cash Flow	-760.97M	-904.31M	34.55M	-354.90M	-982.52M
Financing Cash Flow	-1.32B	-679.00M	-773.60M	-457.52M	-1.13B

Lianhua Supermarket Holdings Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.42
• 50DMA: Negative
• 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:0980, the sentiment is Positive. The current price of 0.42 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.42, and above the 200-day MA of 0.37, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.19 is Neutral, neither overbought nor oversold. The STOCH value of 75.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0980.

Lianhua Supermarket Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0331	78 Outperform	HK$2.56B	5.75	―	3.71%	-3.41%	-9.72%
0709	75 Outperform	HK$2.46B	11.32	10.81%	8.88%	3.78%	-21.19%
1252	55 Neutral	HK$1.08B	2.93	1.78%	―	0.18%	―
0932	53 Neutral	HK$102.56M	-2.82	-26.53%	―	-12.96%	-5950.00%
0980	41 Neutral	$614.03M	―	-404.43%	―	-12.42%	62.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Lianhua Supermarket Holdings Co Corporate Events

Lianhua Supermarket Renews Agreements with Bailian Group, Revises Annual Caps

Lianhua Supermarket Holdings Co has renewed its agreements with Bailian Group to continue its procurement, supply, and warehouse leasing transactions until 2028. The company aims to enhance its performance and development by revising annual caps due to increased cooperation with Bailian Group and expected market growth, following the disposal of certain subsidiaries to Bailian Group.

Lianhua Supermarket Reports Q1 2025 Financial Results Amid Market Challenges

Lianhua Supermarket Holdings Co., Ltd announced its unaudited financial results for the first quarter of 2025, reporting an operating revenue of approximately RMB5.97 billion and a net profit of RMB179.61 million. The company experienced a decline in revenue across its segments compared to the previous year, reflecting challenges in the retail market. Despite the decrease, the company continued its outlet development strategy, opening 34 new outlets while closing 37, indicating a strategic shift in its operational focus.

Lianhua Supermarket Announces Lease Agreement for Xie Tu Property

Lianhua Supermarket Holdings Co has announced a discloseable transaction involving its subsidiary, Century Lianhua Luwan, entering into a lease agreement for the Xie Tu Property with Shenda Group and Xinghai Fashion. The property will be used as a hypermarket and underground parking garage from May 2025 to April 2030. This transaction requires the company to recognize a right-of-use asset in its financial statements, as it is considered an acquisition of an asset under the Hong Kong Listing Rules. The transaction’s value, based on the right-of-use asset, falls between 5% and 25%, necessitating disclosure and reporting under the Listing Rules.

Lianhua Supermarket Holdings Co Reports Revenue Decline and Operating Loss for 2024

Lianhua Supermarket Holdings Co reported a revenue decrease of 9.7% to approximately RMB19,710 million for the year ended December 31, 2024, with declines across its hypermarket, supermarket, and convenience store segments. Despite opening 257 new outlets, the company faced an operating loss of approximately RMB257 million, although the loss attributable to owners decreased by approximately RMB432 million compared to the previous year, indicating some improvement in financial management.

Lianhua Supermarket Holdings Announces Board Meeting for Annual Results

Lianhua Supermarket Holdings Co., Ltd. has announced a board meeting scheduled for March 28, 2025, to discuss and approve the company’s annual results for the year ended December 31, 2024. The meeting will also address the profit distribution proposal and the potential declaration of final dividends, which could have implications for the company’s financial strategy and shareholder returns.

Lianhua Supermarket Completes Domestic Share Subscription for Business Transformation

Lianhua Supermarket Holdings Co., Ltd. announced the completion of a connected transaction involving the subscription of new domestic shares, with 360 million shares issued to Bailian Group. The transaction raised approximately RMB357 million, which will be used primarily for business ecological transformation, including upgrading supermarket and hypermarket outlets, and enhancing digital systems and supply chain management.

Lianhua Supermarket Signs Strategic Management Agreement with Shanghai Dongran

Lianhua Supermarket Holdings Co., Ltd. has signed an Entrustment Management Agreement with Shanghai Dongran, effective until December 2027. Under this agreement, Lianhua will provide operating management and resource support services to the target companies, with an annual service fee cap of RMB4,000,000. This agreement considers personnel costs, brand royalty, and proportional revenue share from the target companies, indicating a strategic move to enhance operational efficiency and expand its market presence.