Lianhua Supermarket Holdings Co (0980) AI Stock Analysis

• Market Cap: HK$503.06M
• Dividend Yield: N/A
• Average Volume (3M): 241.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• 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: 246,800
• 30 Day Avg. Volume: 241,798
• 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: 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: 40 Neutral
• Price Target: HK$0.50 ▲(47.06% Upside)

Lianhua Supermarket Holdings Co's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and persistent losses. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to a negative P/E ratio. The absence of earnings call data and corporate events leaves these areas unaddressed.

Lianhua Supermarket Holdings Co Business Overview & Revenue Model

Company Description

Lianhua 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 Money

Lianhua 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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.40B	19.71B	21.84B	24.68B	24.76B	26.33B
Gross Profit	2.26B	2.37B	2.78B	3.38B	3.06B	3.54B
EBITDA	-403.34M	-304.53M	979.96M	1.65B	1.46B	261.63M
Net Income	-261.71M	-358.76M	-791.32M	-206.53M	-422.78M	-319.29M
Balance Sheet
Total Assets	17.58B	19.66B	20.99B	22.93B	22.83B	23.22B
Cash, Cash Equivalents and Short-Term Investments	3.83B	4.94B	4.37B	5.85B	4.00B	2.44B
Total Debt	3.96B	4.33B	5.14B	6.00B	6.65B	7.12B
Total Liabilities	17.10B	19.59B	20.54B	21.74B	21.58B	21.47B
Stockholders Equity	112.33M	-286.64M	72.13M	818.14M	1.03B	1.45B
Cash Flow
Free Cash Flow	-395.38M	1.12B	628.65M	1.50B	574.97M	1.61B
Operating Cash Flow	-266.71M	1.26B	831.98M	1.74B	995.60M	1.93B
Investing Cash Flow	-106.94M	-760.97M	-904.31M	34.55M	-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: Negative
• Last Price: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 0.34 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.37, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 26.92 is Positive, neither overbought nor oversold. The STOCH value of 19.39 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6808	55 Neutral	HK$16.89B	213.10	0.37%	24.00%	-6.17%	―
0984	46 Neutral	HK$102.70M	-0.26	―	―	-3.03%	-36.45%
0162	43 Neutral	HK$48.29M	-0.08	-110.16%	―	-17.63%	-13.10%
0980	40 Neutral	HK$503.06M	-1.28	-404.43%	―	-12.42%	62.88%
0312	39 Underperform	HK$122.24M	-6.08	-2.41%	―	-0.83%	93.83%
0602	39 Underperform	HK$51.88M	-1.53	―	―	-13.59%	76.48%

Lianhua Supermarket Holdings Co Corporate Events

Lianhua Supermarket to Hold EGM for Strategic Resolutions

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.

Lianhua Supermarket Announces Book Closure for December EGM

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.

Lianhua Supermarket Announces Disposal of Subsidiary and Management Agreement

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.

Lianhua Supermarket Announces Strategic Disposal and Management Arrangement

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.

Lianhua Supermarket Reports Nine-Month Financial Results with Revenue Decline

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.

Lianhua Supermarket Proposes Key Amendments to Articles of Association

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.