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Lianhua Supermarket Holdings Co Ltd Class H (HK:0980)
:0980

Lianhua Supermarket Holdings Co (0980) AI Stock Analysis

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HK:0980

Lianhua Supermarket Holdings Co

(0980)

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Neutral 41 (OpenAI - 5.2)
Rating:41Neutral
Price Target:
HK$0.35
▲(9.06% Upside)
The score is primarily pressured by very weak financial performance—declining revenues, ongoing losses, negative equity, and lack of operating/free cash flow. Technicals are mixed with only short-term support and a negative MACD, while valuation is also constrained by a negative P/E and no indicated dividend yield.
Positive Factors
Market position and scale
Established presence across supermarkets and hypermarkets gives durable competitive advantage via brand recognition, supplier access and customer footfall. Scale supports buying power, network effects and resilience to local disruptions, aiding multi-month strategic initiatives.
Diversified revenue channels and supplier partnerships
Long-term supplier relationships, private labels, promotions and exploration of online retail create multiple revenue levers and margin management options. Such structural diversification supports recovery efforts and sustained competitive pricing over a multi-month horizon.
Operational scale (employee base)
A sizable workforce and implied store footprint underpin logistics, merchandising and omnichannel execution. This operational capacity enables rollout of efficiency programs, supply-chain improvements and e‑commerce integration that can materially affect performance over several months.
Negative Factors
Negative shareholders' equity
Negative equity signals structural solvency stress, limiting ability to raise debt or equity on favorable terms. Over months this constrains capital spending, strategic initiatives, and makes the company vulnerable to creditor actions or refinancing risk, impairing recovery options.
No operating or free cash flow
Absence of operating cash generation undermines internal funding for inventory, capex and debt service. Persisting cash-flow deficits force reliance on external financing or asset sales, increasing execution risk and reducing runway for strategic investments over the coming months.
Declining revenue and persistent losses
Ongoing revenue declines and negative margins indicate structural demand or competitive challenges. Sustained losses erode pricing power and supplier confidence, raising the bar for any turnaround and increasing the likelihood that remedial measures will be required over the medium term.

Lianhua Supermarket Holdings Co (0980) vs. iShares MSCI Hong Kong ETF (EWH)

Lianhua Supermarket Holdings Co Business Overview & Revenue Model

Company DescriptionLianhua Supermarket Holdings Co., Ltd., together with its subsidiaries, operates supermarkets, hypermarkets, and convenience stores primarily in the eastern region of the People's Republic of China. The company operates its stores under the Century Mart, Lianhua Supermarket, Hualian Supermarket, and Lianhua Quik brands. It is also involved in the sale of merchandise to wholesalers; provision of logistic services for wholesale business; sale of products through internet; and franchise of stores, as well as offers catering services. As of December 31, 2021, the company operated 3,279 stores. Lianhua Supermarket Holdings Co., Ltd. was founded in 1991 and is based in Shanghai, the People's Republic of China.
How the Company Makes MoneyLianhua Supermarket generates revenue through the sale of a broad array of consumer goods in its supermarkets and hypermarkets. The primary revenue stream comes from direct sales of groceries and household products, which are sourced from both domestic and international suppliers. The company also benefits from strategic partnerships with various suppliers and manufacturers, allowing it to negotiate favorable pricing and expand its product offerings. Additionally, Lianhua has been exploring online retail channels, which contribute to its earnings by tapping into the growing e-commerce market. Seasonal promotions, loyalty programs, and private label products further enhance customer retention and boost sales, contributing positively to the company's overall financial performance.

Lianhua Supermarket Holdings Co Financial Statement Overview

Summary
Lianhua Supermarket Holdings Co faces significant financial challenges, including declining revenues, persistent losses, high leverage, and cash flow difficulties. These factors indicate potential risks to financial stability and operational sustainability.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.40B19.71B21.84B24.68B24.76B26.33B
Gross Profit2.26B2.37B2.78B3.38B3.06B3.54B
EBITDA-403.34M-304.53M979.96M1.65B1.46B261.63M
Net Income-261.71M-358.76M-791.32M-206.53M-422.78M-319.29M
Balance Sheet
Total Assets17.58B19.66B20.99B22.93B22.83B23.22B
Cash, Cash Equivalents and Short-Term Investments3.83B4.94B4.37B5.85B4.00B2.44B
Total Debt3.96B4.33B5.14B6.00B6.65B7.12B
Total Liabilities17.10B19.59B20.54B21.74B21.58B21.47B
Stockholders Equity112.33M-286.64M72.13M818.14M1.03B1.45B
Cash Flow
Free Cash Flow-395.38M1.12B628.65M1.50B574.97M1.61B
Operating Cash Flow-266.71M1.26B831.98M1.74B995.60M1.93B
Investing Cash Flow-106.94M-760.97M-904.31M34.55M-354.90M-982.52M
Financing Cash Flow-1.11B-1.32B-679.00M-773.60M-457.52M-1.13B

Lianhua Supermarket Holdings Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.32
Price Trends
50DMA
0.36
Positive
100DMA
0.38
Negative
200DMA
0.38
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
64.43
Neutral
STOCH
41.33
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 0.32 is below the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.36, and below the 200-day MA of 0.38, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 64.43 is Neutral, neither overbought nor oversold. The STOCH value of 41.33 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
55
Neutral
HK$16.51B205.950.37%23.73%-6.17%
46
Neutral
HK$106.60M-0.28-3.03%-36.45%
43
Neutral
HK$51.74M-0.09-110.16%-17.63%-13.10%
42
Neutral
HK$236.99M-12.03-2.41%-0.83%93.83%
41
Neutral
HK$562.25M-1.45-404.43%-12.42%62.88%
39
Underperform
HK$53.95M-1.47-13.59%76.48%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0980
Lianhua Supermarket Holdings Co
0.38
0.01
2.70%
HK:6808
Sun Art Retail Group
1.73
0.17
10.76%
HK:0984
AEON Stores (Hong Kong) Co., Limited
0.41
0.03
9.33%
HK:0162
Century Ginwa Retail Holdings Limited
0.05
-0.03
-43.04%
HK:0312
Shirble Department Store Holdings (China) Ltd.
0.10
0.06
171.43%
HK:0602
JiaHua Stores Holdings Limited
0.05
0.02
67.74%

Lianhua Supermarket Holdings Co Corporate Events

Lianhua Supermarket Executive Director Zhu Ding-ping Resigns
Jan 5, 2026

Lianhua Supermarket Holdings Co., Ltd. announced that executive director and executive deputy general manager Zhu Ding-ping has resigned from his positions, effective 5 January 2026, citing other work commitments. The company stated that Zhu has no disagreement with the board and that there are no matters related to his departure requiring shareholder attention, while the board expressed gratitude for his contributions, signaling an orderly senior management transition with no indicated governance dispute or operational disruption.

The most recent analyst rating on (HK:0980) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Lianhua Supermarket Holdings Co stock, see the HK:0980 Stock Forecast page.

Lianhua Supermarket Sets Out Board Composition and Committee Roles
Jan 5, 2026

Lianhua Supermarket Holdings Co., Ltd. has announced the current composition of its board of directors, listing its executive, non-executive, and independent non-executive directors, with Pu Shao-hua serving as chairman and Wang Xiao-yan as vice chairman. The company has also detailed the membership of its five key board committees—Audit, Remuneration and Appraisal, Strategic, Nomination, and Environmental, Social and Governance—clarifying leadership roles and committee assignments, a move that underscores its corporate governance structure and may provide greater transparency and oversight for shareholders and other stakeholders.

The most recent analyst rating on (HK:0980) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Lianhua Supermarket Holdings Co stock, see the HK:0980 Stock Forecast page.

Lianhua Supermarket Strengthens Governance With New Audit Committee Mandate
Dec 18, 2025

Lianhua Supermarket Holdings Co., Ltd. has established an Audit Committee under its board of directors and adopted detailed terms of reference aimed at strengthening its corporate governance framework in line with PRC Company Law, Hong Kong Listing Rules and its Articles of Association. The committee, composed solely of non-executive directors with a majority of independent members and at least one director with accounting or financial management expertise, will oversee the company’s financial reporting system, internal control principles and relationship with external auditors, and will exercise the powers typically held by a supervisory committee under Chinese law. The new terms also formalise rules on membership, tenure, leadership by an independent accounting professional, restrictions on recent audit firm partners, and empower the committee to investigate group activities, obtain independent professional advice and report suspected fraud, internal control failures or legal infringements directly to the board, signalling a tighter control environment and enhanced protection for shareholders and other stakeholders.

The most recent analyst rating on (HK:0980) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Lianhua Supermarket Holdings Co stock, see the HK:0980 Stock Forecast page.

Lianhua Supermarket Discloses EGM Voting Results on Equity Transfer and Disposal
Dec 18, 2025

Lianhua Supermarket Holdings Co., Ltd. announced the voting results of its extraordinary general meeting held in Shanghai on 18 December 2025, convened in accordance with PRC Company Law and the company’s articles of association, where most board members, including chairman Pu Shao-hua, were in attendance. At the meeting, shareholders voted on an ordinary resolution related to Equity Transfer Agreements and a disposal transaction, with controlling shareholder Bailian Group, Shanghai Bailian and their concert parties, who collectively hold about 59.06% of Lianhua’s issued share capital, abstaining from voting as required, leaving 605.73 million shares eligible to vote on the ordinary resolution and 1.48 billion on the special resolution; no other shareholders were required to abstain or vote only against the resolutions, indicating a procedurally compliant approval process that clarifies governance around the disposal and related equity transfer arrangements.

The most recent analyst rating on (HK:0980) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Lianhua Supermarket Holdings Co stock, see the HK:0980 Stock Forecast page.

Lianhua Supermarket to Hold EGM for Strategic Resolutions
Dec 3, 2025

Lianhua Supermarket Holdings Co., Ltd. has announced an extraordinary general meeting scheduled for December 18, 2025, to discuss key resolutions including the approval of an Equity Transfer Agreement and amendments to the Articles of Association. These changes, including the abolishment of the supervisory committee, are part of the company’s strategic efforts to streamline operations and enhance governance, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (HK:0980) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Lianhua Supermarket Holdings Co stock, see the HK:0980 Stock Forecast page.

Lianhua Supermarket Announces Book Closure for December EGM
Dec 2, 2025

Lianhua Supermarket Holdings Co., Ltd. has announced the book closure period for its upcoming extraordinary general meeting (EGM) scheduled for December 18, 2025. The closure will occur from December 16 to December 18, 2025, during which no transfer of H Shares will be processed. Shareholders must ensure their registration by December 15, 2025, to participate and vote in the EGM. This announcement underscores the company’s commitment to maintaining transparent shareholder communications and could impact shareholder engagement and decision-making processes.

The most recent analyst rating on (HK:0980) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Lianhua Supermarket Holdings Co stock, see the HK:0980 Stock Forecast page.

Lianhua Supermarket Announces Disposal of Subsidiary and Management Agreement
Nov 19, 2025

Lianhua Supermarket Holdings Co has announced a significant transaction involving the disposal of its entire equity interest in its subsidiary, Yangpu Century Lianhua. This transaction, valued at approximately RMB78.2860 million, will result in Yangpu Century Lianhua ceasing to be a subsidiary of the company. Additionally, Lianhua intends to enter into an Entrustment Management Agreement with Shanghai Dongran to provide operating management and resource support services to Yangpu Century Lianhua for three years. These transactions are subject to the reporting, announcement, and Independent Shareholders’ approval requirements under the Listing Rules due to their nature as connected transactions.

The most recent analyst rating on (HK:0980) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Lianhua Supermarket Holdings Co stock, see the HK:0980 Stock Forecast page.

Lianhua Supermarket Announces Strategic Disposal and Management Arrangement
Nov 5, 2025

Lianhua Supermarket Holdings Co., Ltd. has announced a possible transaction involving the disposal of its entire equity interest in its subsidiary, Shanghai Century Lianhua Supermarket Yangpu Co., Ltd., to Shanghai Dongran Industrial Co., Ltd., a subsidiary of Bailian Group Co., Ltd. This move is part of a strategic shift, and the disposal’s terms will be finalized based on an independent valuation. Additionally, Lianhua plans to enter into an entrustment management arrangement with Shanghai Dongran, providing operational management and support services to the disposed subsidiary. These strategic decisions could potentially impact Lianhua’s operational focus and market positioning.

The most recent analyst rating on (HK:0980) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Lianhua Supermarket Holdings Co stock, see the HK:0980 Stock Forecast page.

Lianhua Supermarket Reports Nine-Month Financial Results with Revenue Decline
Oct 30, 2025

Lianhua Supermarket Holdings Co., Ltd. reported its unaudited financial results for the nine months ending September 30, 2025, revealing an operating revenue of approximately RMB14.86 billion and a net loss of RMB106.59 million. The company’s operations include hypermarkets, supermarkets, and convenience stores, with a noted decrease in revenue across all segments compared to the previous year. The report highlights the company’s strategic outlet development, with a net decrease in the number of outlets, particularly in the convenience store segment, which may impact its market positioning and operational efficiency.

The most recent analyst rating on (HK:0980) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Lianhua Supermarket Holdings Co stock, see the HK:0980 Stock Forecast page.

Lianhua Supermarket Proposes Key Amendments to Articles of Association
Oct 15, 2025

Lianhua Supermarket Holdings Co., Ltd. has announced proposed amendments to its Articles of Association, which include abolishing the Supervisory Committee and transferring its duties to the Audit Committee. These changes are in response to new guidelines and regulations, including the introduction of electronic voting and hybrid shareholder meetings, ensuring compliance with updated laws and enhancing operational efficiency.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 08, 2026