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China Huirong Financial Holdings Ltd. (HK:1290)
:1290
Hong Kong Market

China Huirong Financial Holdings Ltd. (1290) AI Stock Analysis

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HK

China Huirong Financial Holdings Ltd.

(1290)

Rating:63Neutral
Price Target:
HK$0.50
▼(-28.57%Downside)
The overall stock score reflects a moderate investment opportunity. Strong financial performance and sound valuation are key strengths, but liquidity risks from negative cash flows and technical analysis signals of potential overselling temper enthusiasm. No recent earnings call or corporate events data available to influence the score.

China Huirong Financial Holdings Ltd. (1290) vs. iShares MSCI Hong Kong ETF (EWH)

China Huirong Financial Holdings Ltd. Business Overview & Revenue Model

Company DescriptionChina Huirong Financial Holdings Limited, an investment holding company, provides financial services to small and medium enterprises (SMEs), and individuals in the People's Republic of China. It operates through two segments, Inclusive Finance Business Division and Ecology Finance Business Division. The company offers real estate backed loans, such as personal or corporate financing services to customers; personal property backed financing services for individuals; gold, jewelry, works of art, diamonds, watches, luxury goods, etc.; micro-finance services; turnover loan funds; art investment; equity investment, special asset investment, and insurance brokerage; and supply chain technology, loan facilitation, and factoring services. Further, it provides management and marketing consulting, pawnshop, micro-financing, factoring, technology development and consulting, supply chain management, and non-performing assets purchasing and disposal services. The company was founded in 1999 and is headquartered in Suzhou, the People's Republic of China.
How the Company Makes MoneyChina Huirong Financial Holdings Ltd. generates revenue primarily through interest income on the loans it provides. The company extends secured loans by using various types of collateral, including real estate, vehicles, and other personal property. This secured lending model reduces risk and allows the company to charge competitive interest rates. In addition to interest income, the company may earn fees associated with loan processing and other related financial services. China Huirong may also engage in strategic partnerships with other financial institutions to expand its reach and customer base, although specific partnerships are not detailed. The company's earnings are influenced by factors such as interest rate policies, regulatory environment, and economic conditions affecting its client base.

China Huirong Financial Holdings Ltd. Financial Statement Overview

Summary
The company demonstrates stable profitability margins and a sound balance sheet with moderate leverage. However, cash flow volatility and negative free cash flow present potential liquidity risks.
Income Statement
67
Positive
The company's revenue has shown fluctuations over the years, with a slight decrease in the most recent period. Gross Profit Margin remains stable around 34%, indicating consistent cost management. Net Profit Margin has improved year over year, rising to approximately 7.7% in the latest period. EBIT and EBITDA margins are strong, showing healthy operational efficiency despite revenue variability.
Balance Sheet
74
Positive
The balance sheet shows a stable equity base, with Stockholders' Equity increasing. The Debt-to-Equity ratio is moderate at 0.58, indicating balanced leverage. The Equity Ratio stands at about 55%, suggesting a solid equity buffer. Return on Equity has improved, reflecting better profitability relative to equity.
Cash Flow
62
Positive
Cash flows are somewhat volatile, with negative operating cash flows in recent years. Free Cash Flow remains negative, indicating challenges in covering capital expenditures and debt obligations from operational cash. However, improvements in financing activities are evident, which help in managing liquidity.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue653.16M654.93M621.01M485.67M254.63M
Gross Profit224.06M209.50M184.81M236.35M123.71M
EBITDA156.15M141.32M120.75M180.15M78.81M
Net Income50.48M46.45M41.06M87.17M2.22M
Balance Sheet
Total Assets3.50B3.30B2.99B2.84B2.53B
Cash, Cash Equivalents and Short-Term Investments247.32M258.00M431.77M576.39M541.50M
Total Debt1.11B942.22M734.45M603.11M519.36M
Total Liabilities1.30B1.14B873.82M742.46M590.66M
Stockholders Equity1.91B1.88B1.87B1.87B1.78B
Cash Flow
Free Cash Flow-80.33M-261.48M-111.94M69.59M404.06M
Operating Cash Flow-77.77M-254.19M-102.49M98.46M410.78M
Investing Cash Flow-59.05M4.80M-26.19M-75.67M-7.26M
Financing Cash Flow136.05M189.92M89.58M108.42M-479.17M

China Huirong Financial Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.70
Price Trends
50DMA
0.66
Positive
100DMA
0.62
Positive
200DMA
0.71
Negative
Market Momentum
MACD
0.02
Positive
RSI
54.18
Neutral
STOCH
71.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1290, the sentiment is Neutral. The current price of 0.7 is below the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.66, and below the 200-day MA of 0.71, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 54.18 is Neutral, neither overbought nor oversold. The STOCH value of 71.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1290.

China Huirong Financial Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$16.81B11.859.77%3.76%12.07%-8.35%
63
Neutral
HK$763.23M13.942.66%4.29%-0.23%6.13%
DE5HF
€83.98M8.330.58%
HK$321.27M11.401.12%
68
Neutral
HK$1.20B4.0810.90%7.18%2.47%2.27%
HK$159.00M-0.58%
68
Neutral
HK$330.40M7.821.97%4.96%-21.32%-63.98%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1290
China Huirong Financial Holdings Ltd.
0.67
-0.23
-25.56%
DE:5HF
Hanhua Financial Holding Co., Ltd. Class H
0.01
-0.01
-50.00%
HK:1563
International Alliance Financial Leasing Co., Ltd.
0.20
-0.25
-55.56%
HK:1601
Zhongguancun Science-Tech Leasing Co. Ltd. Class H
0.90
0.25
38.46%
HK:1915
Yangzhou Guangling District Taihe Rural Micro-finance Company Limited Class H
0.26
-0.30
-53.57%
HK:6866
Zuoli Kechuang Micro-finance Co. Ltd. Class H
0.28
-0.04
-12.50%

China Huirong Financial Holdings Ltd. Corporate Events

China Huirong Updates Board Leadership Roles
May 29, 2025

China Huirong Financial Holdings Limited has announced an update to its board of directors, clarifying that Mr. Tse Yat Hong is now the lead independent non-executive director, replacing Mr. Liang Jianhong. This change is part of an amended and restated list of directors and their roles, effective May 29, 2025. The update reflects the company’s commitment to maintaining clear governance structures and transparency in its leadership roles, which is crucial for its stakeholders and market positioning.

China Huirong Financial Holdings Ltd. AGM Resolutions Passed
May 28, 2025

China Huirong Financial Holdings Ltd. announced the results of its Annual General Meeting held on May 28, 2025, where all proposed resolutions were passed. These resolutions included the approval of financial statements, declaration of a final dividend, re-election of directors, and granting of mandates for share buybacks and issuance. The successful passage of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility.

China Huirong Financial Holdings Announces Board and Committee Roles
May 28, 2025

China Huirong Financial Holdings Ltd. has announced the composition of its board of directors and the roles within its board committees. This announcement outlines the leadership structure, which includes executive, non-executive, and independent non-executive directors, and details the members of the audit, remuneration, and nomination committees. This structured leadership is crucial for the company’s governance and operational strategy, potentially impacting its market positioning and stakeholder confidence.

China Huirong Financial Holdings Announces AGM and Key Resolutions
Apr 28, 2025

China Huirong Financial Holdings Ltd. has announced its upcoming annual general meeting scheduled for May 28, 2025, where key resolutions will be discussed. These include the approval of the 2024 financial statements, declaration of a final dividend, re-election of directors, and authorization for share buybacks and issuance, reflecting the company’s strategic focus on governance and shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 10, 2025