Shuanghua Holdings Ltd. (1241) AI Stock Analysis

• Market Cap: HK$121.55M
• Dividend Yield: N/A
• Average Volume (3M): 134.47K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.01
• 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$0.19 ▲(15.62% 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

Conservative balance sheet with near-zero debt

Near-zero leverage and a sizable equity cushion give the company lasting financial flexibility to withstand industry cycles, avoid interest burdens, and fund operations or opportunistic investments without urgent refinancing, supporting stability over the next several months.

Operating and free cash flow turned positive in 2024

A material improvement in operating and free cash flow signals improving cash conversion and internal funding capacity. If sustained, this reduces reliance on external capital, enables cash-funded working capital or modest capex, and meaningfully improves medium-term resilience.

Losses smaller than 2019–2022 extremes

A reduction in loss severity versus prior years suggests operational stabilization and potential progress toward break-even. This trend, if maintained alongside cost discipline, improves the probability of durable margin recovery and long-term viability.

Negative Factors

Persistent net losses and deeply negative margins

Sustained losses and large negative margins erode equity and limit reinvestment capacity, making it harder to fund growth or recover market share. Without durable margin improvement, the company faces structural profitability risk over the medium term.

Sharp revenue contraction in 2024

A steep revenue decline undermines operating leverage and raises questions about demand and market positioning. Persistent top-line weakness makes margin recovery and consistent cash generation more difficult, posing a structural headwind for 2–6 months ahead.

Historically volatile cash generation

Large swings in cash flow create planning uncertainty and increase the risk of future funding needs despite 2024 improvement. If the cash recovery proves intermittent, the company may require external financing or curtail investment, weakening long-term stability.

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

Balance sheet strength is a key positive (very low leverage and sizable equity cushion), but operating performance remains weak with ongoing net losses and a sharp ~38% revenue decline in 2024. Cash flow improved in 2024 with positive operating and free cash flow, yet multi-year volatility and continued losses keep the financial score capped.

Income Statement

Profitability remains weak with net losses in every year provided, and margins are deeply negative in 2024 (net margin about -20% and EBIT margin about -24%). Revenue also contracted sharply in 2024 (down ~38% YoY), reversing the modest growth in 2023. A positive is that losses are smaller than the extreme levels seen in 2019–2022, but the business still has not demonstrated sustainable earnings power.

Balance Sheet

The balance sheet is conservatively financed with essentially no leverage (debt-to-equity near zero across the period, and total debt at or near zero in most years). Equity remains sizable versus assets, providing a cushion despite ongoing losses. The main weakness is continued negative returns on equity (around -4% to -7% in recent years), which signals that capital is not currently generating profits.

Cash Flow

Cash generation is volatile: operating cash flow swung from materially negative in 2023 to strongly positive in 2024 (about HK$15.2M), and free cash flow also turned positive in 2024 (about HK$14.0M). However, prior years show inconsistent and often negative free cash flow (including large outflows in 2020–2021), and the company still reported a net loss in 2024, so the recent improvement needs to prove durable.

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: Positive
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1241, the sentiment is Positive. The current price of 0.16 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.19, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.34 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$3.88B	7.44	13.59%	13.26%	-3.80%	-27.62%
1760	64 Neutral	HK$2.05B	11.76	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$121.55M	-7.08	-5.93%	―	-73.61%	-2.33%
1991	44 Neutral	HK$142.77M	-1.92	-169.48%	―	-38.26%	35.05%
6830	44 Neutral	HK$398.07M	7.45	3.56%	1.22%	14.93%	19.84%
6162	42 Neutral	HK$498.00M	-1,205.00	-0.12%	―	23.71%	-112.50%