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

• Market Cap: HK$621.49M
• Dividend Yield: 5.45%
• Average Volume (3M): 47.33K
• Price to Earnings (P/E): 10.9
• Beta (1Y): -0.13
• Revenue Growth: -1.76%
• EPS Growth: 6.11%
• Country: HK
• Employees: 156
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.03
• Shares Outstanding: 1,090,335,000
• 10 Day Avg. Volume: 58,000
• 30 Day Avg. Volume: 47,333
• PEG Ratio: 2.05
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 1.26
• P/FCF Ratio: -10.27
• 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: 64 Neutral
• Price Target: HK$0.50 ▼(-24.24% Downside)

The stock's overall score is primarily influenced by stable financial performance and reasonable valuation. However, technical indicators suggest potential bearish trends, and liquidity risks from cash flow volatility need attention. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Stable Profitability Margins

Consistent profitability margins indicate effective cost management and operational efficiency, contributing to long-term financial stability.

Sound Balance Sheet

A strong balance sheet with increasing equity and moderate leverage provides financial resilience and the ability to withstand economic fluctuations.

Improved Net Profit Margin

An improving net profit margin reflects enhanced profitability and efficiency, supporting sustainable growth and shareholder value.

Negative Factors

Cash Flow Volatility

Volatile cash flows and negative operating cash flow can hinder the company's ability to invest in growth and meet financial obligations.

Negative Free Cash Flow

Negative free cash flow suggests difficulties in generating sufficient cash to fund operations and growth, potentially impacting long-term viability.

Revenue Fluctuations

Revenue fluctuations can indicate instability in demand or market conditions, challenging consistent growth and financial planning.

China Huirong Financial Holdings Ltd. Business Overview & Revenue Model

Company Description

China Huirong Financial Holdings Ltd. (1290) is a financial services company based in Hong Kong, primarily engaged in providing a diverse range of financial solutions. The company operates in sectors including financial leasing, investment management, and financial advisory services. Its core products and services include consumer and commercial financing, wealth management solutions, and asset management services, catering to both individual and corporate clients.

How the Company Makes Money

China Huirong Financial Holdings Ltd. generates revenue through multiple key streams. The company earns income primarily from interest on loans and financial leases provided to customers. Additionally, it generates fees from its investment management services, which involve managing assets for clients and providing advisory services that may include capital raising and mergers and acquisitions. The company may also benefit from partnerships with other financial institutions that enhance its service offerings, as well as from strategic investments in various financial products. Overall, the revenue model hinges on both direct financing activities and the management of client assets, reflecting a diversified approach to income generation.

China Huirong Financial Holdings Ltd. Financial Statement Overview

Summary

China Huirong Financial Holdings Ltd. shows stable profitability margins and a sound balance sheet with moderate leverage. However, cash flow volatility and negative free cash flow pose liquidity risks, which need addressing for sustainable growth.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	646.38M	653.16M	654.93M	621.01M	485.67M	254.63M
Gross Profit	172.49M	224.06M	209.50M	184.81M	236.35M	123.71M
EBITDA	135.94M	156.15M	145.03M	120.75M	180.15M	78.81M
Net Income	52.64M	50.48M	46.45M	41.06M	87.17M	2.22M
Balance Sheet
Total Assets	3.32B	3.50B	3.30B	2.99B	2.84B	2.53B
Cash, Cash Equivalents and Short-Term Investments	261.66M	247.32M	142.34M	431.77M	576.39M	541.50M
Total Debt	959.25M	1.11B	942.22M	734.45M	603.11M	519.36M
Total Liabilities	1.12B	1.30B	1.14B	873.82M	742.46M	590.66M
Stockholders Equity	1.90B	1.91B	1.88B	1.87B	1.87B	1.78B
Cash Flow
Free Cash Flow	391.17M	-80.33M	-261.48M	-111.94M	69.59M	404.06M
Operating Cash Flow	391.70M	-77.77M	-254.19M	-102.49M	98.46M	410.78M
Investing Cash Flow	-171.27M	-59.05M	4.80M	-26.19M	-75.67M	-7.26M
Financing Cash Flow	-252.71M	136.05M	189.92M	89.58M	108.42M	-479.17M

China Huirong Financial Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1290, the sentiment is Negative. The current price of 0.66 is above the 20-day moving average (MA) of 0.57, above the 50-day MA of 0.60, and above the 200-day MA of 0.63, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of 92.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1290.

China Huirong Financial Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6866	69 Neutral	HK$336.30M	5.57	2.75%	4.88%	-12.94%	-15.93%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1290	64 Neutral	HK$621.49M	10.94	2.76%	5.45%	-1.76%	6.11%
1601	64 Neutral	HK$1.39B	3.83	9.89%	7.43%	1.11%	3.98%
1563	59 Neutral	HK$290.84M	21.50	0.49%	―	8.77%	-76.88%