China Parenting Network Holdings Limited (1736) AI Stock Analysis

• Market Cap: HK$23.33M
• Dividend Yield: N/A
• Average Volume (3M): 51.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: -1.46%
• EPS Growth: 71.80%
• Country: HK
• Employees: 50
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.55
• Shares Outstanding: 43,207,794
• 10 Day Avg. Volume: 117,610
• 30 Day Avg. Volume: 51,253
• PEG Ratio: 0.05
• Price to Book (P/B): -4.41
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -2.08
• 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: 46 Neutral
• Price Target: HK$0.60 ▲(10.74% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, which is the most significant factor. Technical analysis provides some neutral to slightly positive signals, but the negative valuation metrics further weigh down the score. The absence of earnings call data and corporate events leaves the financial and technical aspects as the primary drivers of the score.

Positive Factors

Business Model Strength

A diversified revenue model with advertising, subscriptions, and e-commerce provides resilience against market fluctuations and enhances revenue stability.

Market Position

Being a leading player in a niche market allows the company to leverage its brand recognition and user base for sustained growth and competitive advantage.

Partnerships

Strong partnerships with established brands enhance the company's market reach and credibility, supporting long-term revenue generation and strategic growth.

Negative Factors

Revenue Decline

A consistent decline in revenue indicates challenges in maintaining market share and competitiveness, potentially impacting long-term financial health.

Negative Profitability

Negative profitability suggests inefficiencies and cost management issues, which can hinder the company's ability to invest in growth and innovation.

Financial Distress

Negative equity and financial distress can lead to solvency issues, limiting the company's ability to secure financing and invest in future opportunities.

China Parenting Network Holdings Limited Business Overview & Revenue Model

Company Description

China Parenting Network Holdings Limited (1736) is a prominent player in the parenting and family-focused online services sector in China. The company operates a comprehensive platform that provides resources, information, and community support for parents, covering various aspects such as child development, education, and health. Its core offerings include online content, parenting advice, and e-commerce services for baby and childcare products, aimed at enhancing the parenting experience for families across the country.

How the Company Makes Money

The company generates revenue primarily through a multi-faceted model that includes advertising income from brands targeting parents, subscription fees for premium content and services, and e-commerce sales from its online platform. Key revenue streams consist of partnerships with brands that promote their products through the company's platform, commission from sales made via its e-commerce channels, and income from sponsored content and advertisements tailored to its user base. Significant partnerships with established brands in the parenting and childcare industries further bolster its earnings, allowing the company to leverage its large user base for targeted marketing and sales opportunities.

China Parenting Network Holdings Limited Financial Statement Overview

Summary

The company is facing severe financial challenges, with declining revenues, negative profitability, and increasing leverage. The income statement, balance sheet, and cash flow all indicate financial instability, liquidity issues, and potential solvency problems.

Income Statement

The company's income statement shows a declining trend in revenue and profitability. The gross profit margin decreased significantly from previous years, and both EBIT and net income are negative, indicating operational challenges. Revenue has also been declining over the years, with a significant drop from 2020 to 2024. These factors highlight financial instability and potential issues in cost management.

Balance Sheet

The balance sheet reflects financial distress, with stockholders' equity turning negative in 2024, indicating potential solvency issues. The debt-to-equity ratio is concerning due to negative equity, and the equity ratio has drastically declined. These aspects suggest a weakened financial position and leverage challenges.

Cash Flow

Cash flow analysis reveals struggles in generating positive cash flow, with operating and free cash flows being consistently negative in recent years. The inability to convert revenue into cash indicates liquidity issues. The lack of positive free cash flow limits the company's ability to reinvest and grow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.38M	56.44M	57.44M	84.97M	93.74M	92.27M
Gross Profit	16.69M	15.60M	2.50M	18.39M	5.20M	30.12M
EBITDA	-1.17M	-4.96M	-42.06M	-17.89M	-50.27M	-56.64M
Net Income	-16.94M	-5.28M	-48.18M	-42.24M	-51.45M	-96.52M
Balance Sheet
Total Assets	34.92M	44.83M	115.05M	166.93M	345.39M	371.73M
Cash, Cash Equivalents and Short-Term Investments	9.47M	8.43M	14.83M	23.54M	67.67M	49.05M
Total Debt	24.30M	22.31M	38.45M	34.04M	52.25M	21.11M
Total Liabilities	47.85M	50.34M	78.97M	65.67M	77.16M	45.92M
Stockholders Equity	-12.93M	-5.52M	36.08M	101.25M	268.47M	322.36M
Cash Flow
Free Cash Flow	-3.28M	-11.69M	-16.06M	-762.00K	-44.81M	-12.52M
Operating Cash Flow	-3.28M	-11.63M	-8.98M	6.34M	-44.75M	-1.91M
Investing Cash Flow	342.00K	23.54M	-3.86M	-5.59M	3.58M	21.21M
Financing Cash Flow	1.16M	-18.25M	13.71M	-21.81M	27.49M	-32.86M

China Parenting Network Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1736, the sentiment is Negative. The current price of 0.54 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.58, and below the 200-day MA of 0.57, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 37.25 is Neutral, neither overbought nor oversold. The STOCH value of 17.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1736.

China Parenting Network Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1716	58 Neutral	HK$153.90M	54.81	5.47%	―	37.70%	―
8121	55 Neutral	HK$25.51M	―	-7.45%	―	34.13%	-139.87%
8429	54 Neutral	HK$28.32M	-6.55	-7.87%	―	7.97%	53.72%
1736	46 Neutral	HK$23.33M	-1.29	―	―	-1.46%	71.80%
1753	45 Neutral	HK$225.06M	-4.68	-3.55%	―	-5.89%	-330.91%
8238	31 Underperform	HK$20.73M	-1.04	―	―	22.85%	76.33%

China Parenting Network Holdings Limited Corporate Events

China Parenting Network Updates 2024 Annual Report with Share Award Details

China Parenting Network Holdings Limited has issued a supplementary announcement regarding its 2024 Annual Report, specifically providing additional details about its share award plan. The announcement clarifies the closing price of shares vested on January 11, 2024, and confirms that this supplemental information does not alter any other details in the report. This update is part of the company’s compliance with listing rules and aims to maintain transparency with its stakeholders.