China Oriented International Holdings Ltd. (1871) AI Stock Analysis

• Market Cap: HK$213.00M
• Dividend Yield: N/A
• Average Volume (3M): 75.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -10.07%
• EPS Growth: -39.58%
• Country: HK
• Employees: 158
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): -0.01
• Shares Outstanding: 600,000,000
• 10 Day Avg. Volume: 39,600
• 30 Day Avg. Volume: 75,733
• PEG Ratio: 1.20
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 2.49
• P/FCF Ratio: -3.26
• 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$0.31 ▲(18.08% Upside)

The score is held down primarily by weak financial performance (declining revenue, shrinking margins, ongoing losses, and negative operating/free cash flow), only partially offset by a net-cash balance sheet. Technical indicators are comparatively supportive with strong uptrends and positive MACD, but momentum looks somewhat stretched. Valuation remains pressured due to negative earnings and no dividend yield data.

Positive Factors

Net cash position

A negative net debt position provides durable liquidity and a buffer against ongoing operating losses. This cash-rich stance supports near-term working capital needs, funds potential strategic investments or restructuring, and reduces immediate refinancing risk over the next several quarters.

Diversified revenue streams

Multiple business lines—property leasing, development sales, and fee-based asset management—lower single-segment dependence and create varied cash inflows. This structural diversification helps stabilize revenue through cycles and supports cross-selling and partnership-led growth over 2–6 months.

Low market sensitivity

A low beta indicates the company’s equity historically moves less with market swings, suggesting relative earnings and cash-flow stability. That structural lower volatility can ease capital access and planning, preserving strategic optionality during market stress over the medium term.

Negative Factors

Declining revenue

A sustained revenue decline undermines operating leverage and makes margin recovery harder without structural changes. Over months this reduces retained earnings and constrains reinvestment capacity, increasing pressure on pricing, cost cuts, or asset sales to restore growth.

Negative operating & free cash flow

Persistent negative operating and free cash flows erode cash reserves and limit the firm’s ability to self-fund growth or cover interest and capex. Without a durable cash-flow turnaround, management will face trade-offs between growth, asset disposals, or external financing.

Ongoing losses and shrinking equity

Continuous net losses and deteriorating gross margins shrink shareholders’ equity and reduce financial flexibility. Over a multi-month horizon this can impair credit metrics, raise cost of capital, and limit the company’s ability to invest or withstand prolonged market headwinds.

China Oriented International Holdings Ltd. Business Overview & Revenue Model

Company Description

China Oriented International Holdings Limited, an investment holding company, provides driving training services in the People's Republic of China. The company offers driving training services for the preparation of driving tests of large and small vehicles, such as driving skill written tests, on-site driving tests, on-road driving tests, and road safety written tests, as well as occupational training services. China Oriented International Holdings Limited was founded in 2012 and is headquartered in Zhumadian, the People's Republic of China.

How the Company Makes Money

China Oriented International Holdings Ltd. generates revenue through several key streams. The primary source comes from its property investment and management activities, where the company earns rental income from its portfolio of commercial and residential properties. Additionally, the company engages in real estate development, generating profits from the sale of developed properties. Another significant revenue stream is its asset management services, where it charges fees for managing investments on behalf of clients. Partnerships with local developers and financial institutions also augment its earnings by providing access to lucrative investment opportunities and expanding its service offerings.

China Oriented International Holdings Ltd. Financial Statement Overview

Summary

Weak fundamentals: declining revenue, materially lower gross margin, and persistent net losses with negative EBIT/EBITDA. Balance sheet benefits from net cash, but shrinking equity and consistently negative operating/free cash flow point to sustainability and liquidity-risk concerns.

Income Statement

The company's revenue has been declining over the years, with a negative revenue growth rate in the most recent periods. The gross profit margin has significantly decreased from previous years, and the company has consistently reported negative net income, indicating ongoing losses. The negative EBIT and EBITDA margins highlight operational inefficiencies and challenges in maintaining profitability.

Balance Sheet

The company maintains a strong cash position relative to its debt, indicated by a negative net debt. However, the overall stockholders' equity has been decreasing, reflecting potential financial instability. The debt-to-equity ratio remains relatively moderate, but shrinking equity may pose risks to financial stability.

Cash Flow

The company has experienced negative operating and free cash flows in recent years, highlighting issues with generating cash from operations. The absence of positive cash flow growth and a deteriorating free cash flow position indicate challenges in liquidity and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.21M	32.30M	39.88M	47.73M	67.15M	67.96M
Gross Profit	3.15M	3.93M	8.56M	11.30M	22.66M	29.79M
EBITDA	-1.91M	-1.90M	6.95M	6.99M	13.22M	17.29M
Net Income	-10.80M	-8.36M	-8.44M	-8.67M	-3.45M	6.83M
Balance Sheet
Total Assets	257.92M	266.33M	288.35M	305.23M	309.81M	315.51M
Cash, Cash Equivalents and Short-Term Investments	120.33M	120.91M	152.36M	182.33M	175.24M	167.59M
Total Debt	47.09M	48.66M	57.70M	58.98M	44.01M	40.27M
Total Liabilities	75.89M	79.51M	98.78M	107.22M	103.14M	105.39M
Stockholders Equity	182.03M	186.82M	189.57M	198.01M	206.68M	210.13M
Cash Flow
Free Cash Flow	-28.20M	-24.73M	-24.61M	-1.22M	4.68M	-2.58M
Operating Cash Flow	-5.96M	-2.27M	-3.11M	-164.00K	8.99M	18.07M
Investing Cash Flow	-21.20M	-20.77M	-20.37M	-339.00K	-1.19M	-22.21M
Financing Cash Flow	-2.52M	-8.40M	-6.48M	7.59M	-151.00K	-19.09M

China Oriented International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1871, the sentiment is Positive. The current price of 0.26 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.27, and above the 200-day MA of 0.23, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 76.74 is Negative, neither overbought nor oversold. The STOCH value of 76.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1871.

China Oriented International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1752	69 Neutral	HK$179.16M	11.67	6.55%	6.52%	15.98%	75.61%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1758	51 Neutral	HK$65.93M	-0.47	-95.59%	―	-11.92%	-227.64%
1775	49 Neutral	HK$223.87M	-8.54	-60.77%	―	22.97%	1.03%
1871	48 Neutral	HK$213.00M	-13.62	-5.74%	―	-10.07%	-39.58%