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Lianhua Supermarket Holdings Co Ltd Class H (HK:0980)
:0980
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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 - 4o)
Rating:41Neutral
Price Target:
HK$0.50
▲(25.00% Upside)
Lianhua Supermarket Holdings Co's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and persistent losses. The technical analysis provides a neutral outlook, while the valuation remains unattractive due to a negative P/E ratio and lack of dividend yield.

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. is a major player in China's retail sector, primarily operating in the supermarket and hypermarket segments. The company offers a wide range of products including groceries, fresh produce, household goods, and personal care items, catering to the diverse needs of consumers. With a vast network of retail outlets across various regions, Lianhua aims to provide quality products at competitive prices, enhancing the shopping experience for its customers.
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, 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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue19.71B21.84B24.68B24.76B26.33B
Gross Profit2.37B2.78B3.38B3.06B3.54B
EBITDA-304.53M979.96M1.65B1.46B261.63M
Net Income-358.76M-791.32M-206.53M-422.78M-319.29M
Balance Sheet
Total Assets19.66B20.99B22.93B22.83B23.22B
Cash, Cash Equivalents and Short-Term Investments4.94B4.37B5.85B4.00B2.44B
Total Debt4.33B5.14B6.00B6.65B7.12B
Total Liabilities19.59B20.54B21.74B21.58B21.47B
Stockholders Equity-286.64M72.13M818.14M1.03B1.45B
Cash Flow
Free Cash Flow1.12B628.65M1.50B574.97M1.61B
Operating Cash Flow1.26B831.98M1.74B995.60M1.93B
Investing Cash Flow-760.97M-904.31M34.55M-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
Negative
Last Price0.40
Price Trends
50DMA
0.41
Negative
100DMA
0.40
Negative
200DMA
0.38
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
45.67
Neutral
STOCH
4.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0980, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.41, and above the 200-day MA of 0.38, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 4.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
57
Neutral
$16.98B38.861.96%18.18%-2.44%
41
Neutral
$577.04M-404.43%-12.42%62.88%
41
Neutral
HK$229.50M-2.41%-0.83%93.83%
41
Neutral
HK$55.19M-110.16%-17.63%-13.10%
40
Neutral
HK$67.44M-13.59%76.48%
40
Underperform
HK$104.00M-3.03%-36.45%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0980
Lianhua Supermarket Holdings Co
0.40
0.05
14.49%
HK:6808
Sun Art Retail Group
1.87
0.05
2.47%
HK:0984
AEON Stores (Hong Kong) Co., Limited
0.40
0.00
0.00%
HK:0162
Century Ginwa Retail Holdings Limited
0.05
-0.02
-28.57%
HK:0312
Shirble Department Store Holdings (China) Ltd.
0.09
0.05
125.00%
HK:0602
JiaHua Stores Holdings Limited
0.06
0.03
100.00%

Lianhua Supermarket Holdings Co Corporate Events

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.

Lianhua Supermarket Sees Profit Surge Despite Revenue Decline in H1 2025
Aug 28, 2025

Lianhua Supermarket Holdings Co reported a revenue decline of 12% year-on-year for the first half of 2025, with significant decreases in same-store sales across its hypermarket, supermarket, and convenience store segments. Despite the revenue drop, the company achieved a substantial increase in operating profit by 466.6% year-on-year, attributed to improved profit margins and strategic expansion with the opening of 95 new outlets, primarily supermarkets and convenience stores. This strategic growth and profitability improvement may enhance the company’s market position and stakeholder confidence.

Lianhua Supermarket Holdings Announces Upcoming Board Meeting for Interim Results
Aug 15, 2025

Lianhua Supermarket Holdings Co., Ltd. has announced a board meeting scheduled for August 28, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also address the profit distribution proposal and the potential declaration of interim dividends, reflecting the company’s ongoing commitment to shareholder value and financial transparency.

Lianhua Supermarket Announces Positive Profit Outlook for 2025
Aug 1, 2025

Lianhua Supermarket Holdings Co., Ltd. has issued a positive profit alert, indicating an expected net profit of RMB25.0 million to RMB55.0 million for the first half of 2025, a significant turnaround from a net loss of RMB54.809 million in the same period of 2024. This improvement is attributed to strategic adjustments, the sale of certain subsidiary equity interests, and optimized resource allocation, signaling a positive shift in the company’s financial health and strategic direction.

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: Oct 17, 2025