Cinese International Group Holdings Limited (1620) AI Stock Analysis

• Market Cap: HK$128.40M
• Dividend Yield: N/A
• Average Volume (3M): 686.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: -19.12%
• EPS Growth: -7.24%
• Country: HK
• Employees: 82
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): -0.01
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 802,000
• 30 Day Avg. Volume: 686,333
• PEG Ratio: <0.01
• Price to Book (P/B): 124.73
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 22.19
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: HK$0.08 ▼(-26.36% Downside)

Cinese International Group Holdings Limited is facing significant financial difficulties, with declining revenue, high leverage, and weak cash flow performance. Technical analysis indicates bearish momentum, and valuation metrics reflect a challenging financial situation. These factors contribute to a low overall stock score, highlighting the need for substantial improvements in financial health and operational efficiency.

Positive Factors

Diversified Revenue Streams

Cinese's diversified revenue streams from construction materials, property investment, and collaborations provide a buffer against sector volatility, supporting long-term stability.

Market Focus

By tailoring offerings to the construction sector, Cinese leverages its expertise to maintain a competitive edge and meet industry-specific demands, aiding sustained business relevance.

Strategic Partnerships

Strategic partnerships expand market reach and improve operational efficiency, positioning Cinese to capitalize on industry opportunities and drive long-term growth.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting Cinese's ability to invest in growth opportunities and manage economic downturns, impacting long-term stability.

Declining Revenue

Declining revenue growth suggests challenges in maintaining market share or pricing power, which could hinder long-term profitability and competitive positioning.

Weak Cash Flow

Weak cash flow limits Cinese's ability to reinvest in business operations, pay down debt, or weather financial challenges, posing a risk to long-term financial health.

Cinese International Group Holdings Limited Business Overview & Revenue Model

Company Description

Cinese International Group Holdings Limited, an investment holding company, provides travel products and services in Canada and the United States. The company operates through four segments: Air Ticket Distribution, Travel Business Process Management, Travel Products and Services, and Other Business Process Management. The Air Ticket Distribution segment sells air tickets to travel agents and travelers; and issues air tickets on behalf of airlines. The Travel Business Process Management segment provides mid-office and back-office support services comprising air ticket transaction processing, customer contact, BSP/ARC settlement and reconciliation, software development, travel licensing, compliance, and other administrative services to travel agents. The Travel Products and Services segment designs, develops, and sells package tours, as well as other travel products and services to travel agents and travelers. The Other Business Process Management segment provides translation, customer contact, software support, agent, and other administrative services on behalf of a healthcare company. The company was formerly known as Cteh Inc. and changed its name to Cinese International Group Holdings Limited in November 2021. Cinese International Group Holdings Limited was founded in 1976 and is headquartered in Kowloon, Hong Kong.

How the Company Makes Money

Cinese International Group Holdings Limited generates revenue primarily through the trading of construction materials, which constitutes a significant portion of its business model. The company sources various building materials and sells them to contractors and construction firms, earning profit margins on these transactions. In addition to trading, Cinese also engages in property investment, generating rental income from its real estate holdings. The company may also have partnerships with suppliers and contractors that enhance its market reach and operational efficiency. Overall, its revenue streams are bolstered by a combination of material sales, rental income, and strategic collaborations in the construction sector.

Cinese International Group Holdings Limited Financial Statement Overview

Summary

Cinese International Group Holdings Limited faces significant financial challenges across all verticals. The income statement shows declining revenue and profitability, while the balance sheet highlights high leverage and financial risk. Cash flow performance is weak, with negative growth and limited cash conversion. The company needs to address operational inefficiencies and improve financial stability to enhance its financial health.

Income Statement

The income statement reveals significant challenges, with a negative revenue growth rate of -17.07% in the latest year and declining profitability margins. Gross profit margin decreased from 42.70% to 33.27%, and net profit margin turned negative at -46.34%. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies. These trends suggest a struggling business environment with declining revenue and profitability.

Balance Sheet

The balance sheet shows a concerning debt-to-equity ratio of 6.74, indicating high leverage and potential financial risk. Return on equity is negative at -79.70%, reflecting poor profitability relative to shareholder investment. The equity ratio is low, suggesting limited financial stability. Overall, the balance sheet highlights significant financial leverage and risk.

Cash Flow

Cash flow analysis indicates a negative free cash flow growth rate of -112.49%, suggesting deteriorating cash generation capabilities. The operating cash flow to net income ratio is low at 0.03, indicating weak cash conversion. However, the free cash flow to net income ratio is relatively stable at 0.97, showing some ability to generate cash relative to net income. Overall, cash flow performance is weak, with declining free cash flow and limited cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.76M	95.97M	103.51M	45.78M	55.82M	51.60M
Gross Profit	22.55M	31.93M	44.20M	18.79M	10.55M	16.22M
EBITDA	-12.48M	-25.71M	8.06M	-10.85M	-53.55M	-46.44M
Net Income	-22.05M	-44.48M	2.92M	-13.80M	-75.77M	-48.06M
Balance Sheet
Total Assets	174.33M	110.83M	141.80M	132.95M	155.42M	139.46M
Cash, Cash Equivalents and Short-Term Investments	60.89M	32.24M	26.43M	45.21M	48.75M	35.97M
Total Debt	2.77M	4.92M	7.16M	8.11M	8.64M	7.64M
Total Liabilities	183.57M	110.27M	91.52M	85.13M	90.90M	25.59M
Stockholders Equity	-9.24M	558.00K	50.28M	47.82M	64.52M	113.86M
Cash Flow
Free Cash Flow	-1.15M	3.14M	-24.88M	-11.31M	12.89M	-47.20M
Operating Cash Flow	-1.11M	3.25M	-24.84M	-11.23M	15.60M	-46.54M
Investing Cash Flow	-92.00K	-509.00K	137.00K	10.35M	3.33M	12.34M
Financing Cash Flow	-546.00K	3.04M	7.26M	-1.70M	-348.00K	-6.29M

Cinese International Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 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:1620, the sentiment is Positive. The current price of 0.11 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 69.04 is Neutral, neither overbought nor oversold. The STOCH value of 105.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1620.

Cinese International Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1701	64 Neutral	HK$121.00M	4.46	16.79%	―	80.68%	131.62%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1235	55 Neutral	HK$84.13M	165.00	0.79%	4.55%	32.99%	-94.85%
8668	51 Neutral	HK$126.00M	-27.63	-18.19%	―	1.28%	60.00%
8069	50 Neutral	HK$35.12M	-6.83	-7.99%	―	-17.40%	51.54%
1901	46 Neutral	HK$429.31M	-15.99	-29.79%	―	68.29%	41.90%
1620	39 Underperform	HK$128.40M	-4.51	-574.47%	―	-19.12%	-7.24%

Cinese International Group Holdings Limited Corporate Events

Cinese International Announces Board Restructuring

Cinese International Group Holdings Limited announced changes in its board structure, specifically the appointment of Mr. Lo as an independent non-executive director and adjustments in board committee compositions. Mr. Lo has confirmed his independence in accordance with the relevant listing rules, ensuring no conflicts of interest, which is crucial for maintaining governance standards and stakeholder trust.

The most recent analyst rating on (HK:1620) stock is a Sell with a HK$0.08 price target. To see the full list of analyst forecasts on Cinese International Group Holdings Limited stock, see the HK:1620 Stock Forecast page.

Cinese International Announces Board Changes with New Appointment

Cinese International Group Holdings Limited, a company incorporated in Ontario, Canada and continued in the Cayman Islands, has announced a change in its board composition. Ms. Suen Yin Wah Chloe has resigned as an independent non-executive director to focus on personal matters, and Mr. Lo Ying Kit, an experienced entrepreneur in the child education and publishing industry, has been appointed to the role. This change is expected to bring new insights and strategic direction to the company’s board, potentially impacting its operations and market positioning.

The most recent analyst rating on (HK:1620) stock is a Sell with a HK$0.08 price target. To see the full list of analyst forecasts on Cinese International Group Holdings Limited stock, see the HK:1620 Stock Forecast page.

Cinese International Group Holdings Announces Board Composition and Roles

Cinese International Group Holdings Limited, incorporated in Ontario, Canada and continued in the Cayman Islands, has announced the composition of its board of directors and their respective roles and functions. The board consists of executive directors and independent non-executive directors, with three committees: Audit, Remuneration, and Nomination. This announcement provides clarity on the governance structure of the company, which may influence its strategic decision-making and enhance transparency for stakeholders.

The most recent analyst rating on (HK:1620) stock is a Sell with a HK$0.08 price target. To see the full list of analyst forecasts on Cinese International Group Holdings Limited stock, see the HK:1620 Stock Forecast page.