Lianhua Supermarket Holdings Co (0980) AI Stock Analysis

• Market Cap: $577.04M
• 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: 2.15
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• 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 Business Overview & Revenue Model

Company Description

Lianhua 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 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, 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: Negative
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 0.4 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

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	57 Neutral	$16.98B	38.86	1.96%	18.18%	-2.44%	―
0980	41 Neutral	$577.04M	―	-404.43%	―	-12.42%	62.88%
0312	41 Neutral	HK$229.50M	―	-2.41%	―	-0.83%	93.83%
0162	41 Neutral	HK$55.19M	―	-110.16%	―	-17.63%	-13.10%
0602	40 Neutral	HK$67.44M	―	―	―	-13.59%	76.48%
0984	40 Underperform	HK$104.00M	―	―	―	-3.03%	-36.45%

Lianhua Supermarket Holdings Co Corporate Events

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.

Lianhua Supermarket Sees Profit Surge Despite Revenue Decline in H1 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

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

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.