Shuanghua Holdings Ltd. (1241) AI Stock Analysis

• Market Cap: HK$66.30M
• Dividend Yield: N/A
• Average Volume (3M): 72.27K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.15
• Revenue Growth: -18.60%
• EPS Growth: -40.30%
• Country: HK
• Employees: 48
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Parts
• EPS (TTM): -0.03
• Shares Outstanding: 650,000,000
• 10 Day Avg. Volume: 2,400
• 30 Day Avg. Volume: 72,266
• PEG Ratio: -0.32
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.00
• 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

• Rating: 48 Neutral
• Price Target: ―

Shuanghua Holdings Ltd. has a challenging financial performance with declining revenues and profitability, which significantly impacts its stock score. The technical analysis shows some positive momentum, but high RSI indicates potential overbought conditions. The valuation is unattractive due to negative earnings and no dividend yield. Overall, the company needs to enhance its financial health to improve the stock's attractiveness.

Shuanghua Holdings Ltd. Business Overview & Revenue Model

Company Description

Shuanghua Holdings Ltd. (1241) is an investment holding company primarily engaged in the development, manufacture, and sales of automotive components. The company specializes in producing automotive air-conditioning systems, focusing on providing high-quality thermal management solutions for vehicles. Shuanghua Holdings Ltd. operates mainly in the automotive sector, catering to both domestic and international markets.

How the Company Makes Money

Shuanghua Holdings Ltd. generates revenue primarily through the sale of its automotive components, particularly air-conditioning systems, to car manufacturers and aftermarket suppliers. The company's key revenue streams include OEM (Original Equipment Manufacturer) contracts with automotive companies and the distribution of parts to the aftermarket segment. Additionally, Shuanghua Holdings may engage in strategic partnerships and collaborations with automotive brands to enhance its market reach and product offerings. Factors contributing to its earnings include its ability to innovate and deliver reliable products that meet industry standards, as well as maintaining strong relationships with key clients in the automotive industry.

Shuanghua Holdings Ltd. Financial Statement Overview

Summary

Shuanghua Holdings Ltd. faces significant financial challenges, with declining revenues, persistent net losses, and a lack of positive cash flow. Despite a strong equity position and zero debt, these positives are overshadowed by ongoing operational difficulties. The company needs to address revenue generation and profitability to improve its financial health.

Income Statement

Shuanghua Holdings Ltd. has experienced a significant decline in revenue from 2023 to 2024, with total revenue dropping from 100.69 million to 82.78 million, indicating a negative revenue growth rate. The company also reported negative net income and EBIT, resulting in negative net and EBIT margins. Despite a slight improvement in gross profit margin compared to 2023, overall profitability remains a concern due to persistent losses.

Balance Sheet

The company maintains a strong equity position with zero total debt in 2024, resulting in a favorable debt-to-equity ratio. However, the stockholders' equity has decreased slightly over the past year. The equity ratio is robust, indicating financial stability. Despite these strengths, the continued net losses impact the return on equity negatively.

Cash Flow

Shuanghua Holdings Ltd. reported zero operating cash flow and free cash flow for 2024, a significant decline from negative operating and free cash flow in 2023. The absence of positive cash flow from operations raises concerns about liquidity and sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
82.78M	100.69M	20.41M	32.69M	63.79M
	Gross Profit
2.31M	14.46M	3.23M	4.97M	9.60M
	EBIT
-19.95M	-6.87M	-19.52M	-22.28M	-18.87M
	EBITDA
-8.94M	1.94M	-8.74M	-5.85M	-11.56M
	Net Income Common Stockholders
-16.90M	-12.11M	-19.95M	-18.58M	-5.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
79.93M	65.35M	89.28M	97.73M	74.59M
	Total Assets
278.32M	318.08M	303.53M	324.19M	382.82M
	Total Debt
0.00	751.00K	0.00	878.00K	1.72M
	Net Debt
-79.93M	-64.60M	-89.28M	-96.85M	-17.87M
	Total Liabilities
17.62M	40.48M	13.83M	14.54M	43.44M
	Stockholders Equity
260.69M	277.59M	289.70M	309.65M	333.33M
Cash Flow		Free Cash Flow
0.00	-24.14M	-7.84M	-28.31M	-49.77M
	Operating Cash Flow
0.00	-21.41M	-5.06M	2.20M	-658.00K
	Investing Cash Flow
0.00	-1.32M	-2.48M	81.64M	3.38M
	Financing Cash Flow
0.00	-766.00K	-900.00K	-5.50M	-1.06M

Shuanghua Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1241, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.12, and above the 200-day MA of 0.10, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 26.80 is Positive, neither overbought nor oversold. The STOCH value of 34.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1241.

Shuanghua Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2328	79 Outperform	$332.31B	9.53	13.15%	6.08%	3.52%	26.44%
1211	74 Outperform	$970.77B	22.46	23.91%	1.15%	33.89%	45.52%
3898	68 Neutral	$45.82B	10.63	9.62%	2.78%	11.54%	16.09%
Sector *	62 Neutral	$6.76B	11.06	2.80%	6.66%	2.68%	-24.89%
1114	61 Neutral	$15.29B	4.55	8.00%	567.66%	-3.96%	-60.66%
1958	58 Neutral	$15.23B	14.69	1.66%	7.51%	-4.64%	-69.72%
1241	48 Neutral	HK$66.30M	―	-6.29%	―	-18.60%	-40.30%

Shuanghua Holdings Ltd. Corporate Events

Shuanghua Holdings Ltd. Announces 2025 AGM with Key Resolutions

Shuanghua Holdings Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for June 30, 2025, in Shanghai. During the AGM, the company will address several key resolutions, including the consideration of audited financial statements for the year ending December 31, 2024, the reappointment of BDO Limited as the company’s auditor, and the re-election of certain directors. Additionally, the meeting will discuss authorizing the directors to allot and issue new shares, with limitations set on the aggregate number of shares to be issued.

Shuanghua Holdings Reports Increased Losses for 2024

Shuanghua Holdings Ltd. announced its annual results for the year ending December 31, 2024, reporting a significant decrease in revenue from RMB 100,685,000 in 2023 to RMB 82,778,000 in 2024. The company also experienced a comprehensive loss of RMB 16,896,000, compared to a loss of RMB 12,107,000 in the previous year, indicating financial challenges that may impact its market positioning and stakeholders.

Shuanghua Holdings Issues Profit Warning Amid Economic Challenges

Shuanghua Holdings Ltd. has issued a profit warning for the fiscal year ending December 31, 2024. The company anticipates a decrease in revenue to approximately RMB 82.3 million from RMB 100.7 million in the previous year, and an increase in net loss after tax to around RMB 16.9 million from RMB 12.1 million. This decline is attributed to a sluggish economic outlook and weak demand in China, prompting the company to adjust its product and service portfolio. Additionally, the strategic reduction in gross margin to offer cost-effective products and services has contributed to the increased net loss.