Cherish Sunshine International Limited (1094) AI Stock Analysis

• Market Cap: HK$260.71M
• Dividend Yield: N/A
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -92.58%
• EPS Growth: -44916.67%
• Country: HK
• Employees: 88
• Sector: Industrials
• Sector Strength: 72
• Industry: Information Technology Services
• EPS (TTM): -0.06
• Shares Outstanding: 592,512,700
• 10 Day Avg. Volume: 195,116
• 30 Day Avg. Volume: 1,452,748
• PEG Ratio: <0.01
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 3.77
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$0.50 ▲(30.26% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held down primarily by weak financial performance, including a steep revenue drop and ongoing losses, despite improved free cash flow. Technicals are moderately supportive with price above major moving averages and a positive MACD, but an elevated RSI indicates stretched momentum. Valuation remains unattractive/uncertain due to a negative P/E and no dividend yield data.

Positive Factors

Free Cash Flow Improvement

A near tenfold increase in free cash flow is a durable operational improvement that provides liquidity cushion and flexibility. Over the next 2–6 months stronger FCF can fund working capital, reduce reliance on external financing, and support strategic investments during a revenue recovery.

High FCF-to-Net Income Conversion

A FCF-to-net income ratio around 0.99 indicates reported earnings largely convert into cash, improving earnings quality and resilience. This durable metric suggests management can generate cash from operations, supporting solvency and reinvestment even if revenue growth is uneven.

Manageable Leverage

A debt-to-equity ~0.84 implies leverage is moderate rather than excessive, giving the company room to finance a turnaround without immediate solvency pressure. This structural capacity to carry debt supports operational continuity and access to credit over the medium term.

Negative Factors

Severe Revenue Decline

An 85% revenue collapse is structurally damaging: it erodes scale economics, reduces pricing leverage, and can permanently impair customer relationships. Restoring top-line momentum typically takes multiple quarters and requires investment or product change, straining margins and strategic options.

Negative Profitability

Persistent negative EBIT/net margins and a negative ROE indicate the business is not generating returns on invested capital. Over months this undermines retained earnings, limits reinvestment, and increases dependence on external capital, constraining long-term competitive positioning.

Weak Operating Cash Conversion

OCF-to-net income of 0.14 shows earnings are poorly backed by operating cash, signaling working capital or accrual issues. This structural weakness raises the risk that reported improvements in FCF are transient and that core cash generation may lag, pressuring liquidity if revenue remains depressed.

Cherish Sunshine International Limited Business Overview & Revenue Model

Company Description

China Public Procurement Limited, an investment holding company, engages in the trading of various products in the People's Republic of China. It operates through five segments: Provision of Procurement Services, Trading Business, Provision of Corporate IT Solution, Rental Income, Energy Management Contracting Business. The company is involved in the provision of procurement services to governmental authorities, and private enterprises; and provides energy management contracting services. It also engages in the leasing of investment properties; and trades in various products. In addition, the company develops software and provides maintenance services. The company was formerly known as Sunny Global Holdings Limited and changed its name to China Public Procurement Limited in May 2009. China Public Procurement Limited was incorporated in 2002 and is headquartered in Hangzhou, Hong Kong.

How the Company Makes Money

Cherish Sunshine International Limited Financial Statement Overview

Summary

Financials are pressured by an 85.15% revenue decline and negative net/EBIT margins, indicating ongoing losses and unstable operations. Balance sheet leverage is moderate (debt-to-equity 0.84) but ROE is negative. Cash flow is a relative bright spot with sharply higher free cash flow (+968.47%) and strong FCF-to-net income (0.99), though operating cash flow vs. net income is low (0.14).

Income Statement

The income statement reveals significant challenges, with a drastic revenue decline of 85.15% in the latest period. The company has negative net and EBIT margins, indicating substantial losses. The gross profit margin is relatively low at 28.68%, and the revenue growth trajectory has been inconsistent over the years, reflecting volatility in the company's operations.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.84, suggesting manageable leverage. However, the return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio is not explicitly provided, but the overall financial health appears stable with a reasonable level of equity compared to assets.

Cash Flow

Cash flow analysis highlights a remarkable improvement in free cash flow growth, up by 968.47%. The operating cash flow to net income ratio is low at 0.14, suggesting limited cash generation relative to net income. However, the free cash flow to net income ratio is strong at 0.99, indicating efficient cash conversion from earnings.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.07M	98.25M	782.18M	271.72M	112.20M	93.56M
Gross Profit	16.76M	28.18M	59.51M	37.63M	19.38M	18.61M
EBITDA	-103.47M	-129.58M	-1.38M	3.12M	-27.94M	-4.21M
Net Income	-159.16M	-123.89M	656.00K	13.28M	-25.54M	1.64M
Balance Sheet
Total Assets	508.06M	538.01M	727.93M	593.42M	369.22M	360.00M
Cash, Cash Equivalents and Short-Term Investments	21.69M	30.53M	6.31M	8.48M	27.59M	17.66M
Total Debt	173.88M	171.97M	124.11M	137.96M	26.94M	34.74M
Total Liabilities	341.85M	344.97M	432.62M	283.06M	174.56M	155.53M
Stockholders Equity	177.44M	204.72M	307.00M	321.87M	206.91M	214.38M
Cash Flow
Free Cash Flow	-28.20M	45.92M	11.80M	-222.47M	-25.67M	1.22M
Operating Cash Flow	-28.01M	46.11M	12.58M	-217.05M	-25.13M	1.61M
Investing Cash Flow	-10.63M	-95.33M	-146.00K	-764.00K	1.03M	-6.09M
Financing Cash Flow	7.45M	62.45M	-14.40M	200.86M	33.98M	-2.99M

Cherish Sunshine International Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1094, the sentiment is Positive. The current price of 0.38 is above the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.35, and below the 200-day MA of 0.44, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 70.41 is Negative, neither overbought nor oversold. The STOCH value of 56.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1094.

Cherish Sunshine International Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2700	51 Neutral	HK$376.14M	-21.76	-7.37%	―	11.32%	62.61%
0118	50 Neutral	HK$155.15M	26.19	0.53%	―	-9.32%	―
1222	49 Neutral	HK$261.45M	-0.28	-30.56%	―	30.86%	-67.89%
1094	48 Neutral	HK$260.71M	-2.06	-66.52%	―	-92.58%	-44916.67%
1282	41 Neutral	HK$575.00M	-1.61	-4.03%	―	55.27%	68.84%

Cherish Sunshine International Limited Corporate Events

Cherish Sunshine Drops Photovoltaic Inverter Joint Venture After PRC Policy Shift

Cherish Sunshine International Limited has terminated a previously announced plan to form a joint venture with Xinhui Yuanheng to invest in the photovoltaic inverter business in mainland China. Although the JV company had been incorporated, neither party had injected share capital, and, following recent changes in PRC policies affecting the photovoltaic industry in early January 2026, both sides agreed that launching the venture was no longer commercially justifiable and signed a termination agreement on 16 January 2026, with the JV to be deregistered. The board stated that ending the venture is not expected to have a material adverse impact on the group’s financial performance or operations and considers the decision to be in the overall interests of the company and its shareholders.

The most recent analyst rating on (HK:1094) stock is a Hold with a HK$0.33 price target. To see the full list of analyst forecasts on Cherish Sunshine International Limited stock, see the HK:1094 Stock Forecast page.