Shuanghua Holdings Ltd. (1241) AI Stock Analysis

• Market Cap: HK$107.25M
• Dividend Yield: N/A
• Average Volume (3M): 134.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• Revenue Growth: -73.61%
• EPS Growth: -2.33%
• Country: HK
• Employees: 48
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 650,000,000
• 10 Day Avg. Volume: 54,600
• 30 Day Avg. Volume: 134,466
• PEG Ratio: -0.10
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 4.97
• 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$0.16 ▲(0.63% Upside)

The score is primarily constrained by weak financial performance (ongoing losses and a sharp 2024 revenue drop), despite a conservative, low-debt balance sheet and improved 2024 cash flow. Technicals are bearish with the stock below major moving averages and negative MACD, and valuation signals are not supportive because the company is loss-making and lacks a stated dividend yield.

Positive Factors

Balance Sheet Strength

A low-debt balance sheet provides financial stability and flexibility, allowing the company to navigate economic downturns and invest in growth opportunities without the burden of high interest obligations.

Improved Cash Flow

Positive cash flow indicates better operational efficiency and the ability to fund operations and potential investments internally, reducing reliance on external financing.

Equity Cushion

A strong equity base relative to assets offers a buffer against financial distress, supporting long-term solvency and potential for future growth.

Negative Factors

Ongoing Net Losses

Persistent net losses highlight challenges in achieving profitability, which may hinder reinvestment in the business and affect long-term sustainability.

Revenue Decline

Significant revenue decline suggests weakening market position or demand, which could impact the company's ability to compete and grow in the long term.

Negative Margins

Negative margins indicate inefficiencies and cost management issues, which can erode profitability and limit the company's ability to invest in strategic initiatives.

Shuanghua Holdings Ltd. Business Overview & Revenue Model

Company Description

Shuanghua Holdings Limited, an investment holding company, manufactures, imports, exports, and sells automobile air-conditioner parts and components in Mainland China, other Asian countries, and internationally. It also manufactures and sells heaters, intercoolers, oil-coolers, coolant reservoirs, water tanks, lubricant oil, etc. In addition, the company is involved in the sale of automotive lubricants. It offers its products under the Shuanghua brand names. The company was formerly known as Shanghai Shuanghua Autoparts Co., Ltd. Shuanghua Holdings Limited was founded in 1997 and is headquartered in Shanghai, the People's Republic of China.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.00M	82.78M	100.69M	20.41M	32.69M	63.79M
Gross Profit	-1.01M	2.31M	14.46M	3.23M	4.97M	9.60M
EBITDA	-9.07M	-8.94M	1.94M	-8.74M	-5.85M	-11.56M
Net Income	-15.83M	-16.90M	-12.11M	-19.95M	-18.58M	-5.15M
Balance Sheet
Total Assets	279.34M	278.32M	318.08M	303.53M	324.19M	382.82M
Cash, Cash Equivalents and Short-Term Investments	81.52M	79.93M	65.35M	89.28M	97.73M	74.59M
Total Debt	0.00	0.00	751.00K	0.00	878.00K	1.72M
Total Liabilities	20.76M	17.62M	40.48M	13.83M	14.54M	43.44M
Stockholders Equity	258.58M	260.69M	277.59M	289.70M	309.65M	333.33M
Cash Flow
Free Cash Flow	-13.55M	14.01M	-24.14M	-7.84M	-28.31M	-49.77M
Operating Cash Flow	-13.63M	15.23M	-21.41M	-5.06M	2.20M	-658.00K
Investing Cash Flow	-67.78M	-68.93M	-1.32M	-2.48M	81.64M	3.38M
Financing Cash Flow	-384.00K	-767.00K	-766.00K	-900.00K	-5.50M	-1.06M

Shuanghua Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.16 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.20, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 28.87 is Positive, neither overbought nor oversold. The STOCH value of 69.99 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
1571	76 Outperform	HK$3.84B	7.37	13.59%	13.26%	-3.80%	-27.62%
1760	64 Neutral	HK$2.16B	12.45	6.62%	3.20%	13.35%	-38.32%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1241	48 Neutral	HK$107.25M	-6.25	-5.93%	―	-73.61%	-2.33%
6830	44 Neutral	HK$442.30M	8.28	3.56%	1.22%	14.93%	19.84%
6162	44 Neutral	HK$600.00M	-1,475.00	-0.12%	―	23.71%	-112.50%
1991	37 Underperform	HK$149.65M	-2.11	-169.48%	―	-38.26%	35.05%