Guan Chao Holdings Limited (1872) AI Stock Analysis

• Market Cap: HK$3.66B
• Dividend Yield: N/A
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.18
• Revenue Growth: 71.00%
• EPS Growth: -579.14%
• Country: HK
• Employees: 108
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.04
• Shares Outstanding: 651,701,100
• 10 Day Avg. Volume: 649,600
• 30 Day Avg. Volume: 2,456,268
• PEG Ratio: 0.04
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 1.69
• 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: 51 Neutral
• Price Target: HK$6.00 ▲(1.69% Upside)

The overall stock score is primarily impacted by financial performance challenges, including inconsistent revenue growth and declining profitability. Technical analysis provides some support with moderate momentum, but valuation concerns due to a negative P/E ratio and lack of dividend yield weigh heavily on the score.

Positive Factors

Diversified Revenue Streams

Guan Chao's diversified revenue streams across manufacturing, trading, logistics, and real estate provide resilience against sector-specific downturns, supporting long-term stability and growth.

Strategic Partnerships

Strategic partnerships enhance Guan Chao's supply chain and market reach, fostering competitive advantages and supporting sustainable revenue growth over time.

Deleveraging Efforts

Improved debt-to-equity ratio indicates successful deleveraging efforts, enhancing financial stability and reducing long-term risk, which supports future financial flexibility.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth and declining profitability highlight challenges in maintaining stable financial performance, which could affect long-term business sustainability.

Negative Operating Cash Flow

Negative operating cash flow indicates potential liquidity issues, limiting the company's ability to reinvest in growth and manage operational expenses effectively over the long term.

Declining Profit Margins

Declining profit margins suggest pressure on operational efficiency, which could impact the company's ability to generate sustainable profits and maintain competitive pricing strategies.

Guan Chao Holdings Limited Business Overview & Revenue Model

Company Description

Guan Chao Holdings Limited (1872) is a diversified investment holding company based in Hong Kong, primarily engaged in the manufacturing and trading of metal and metal-related products. The company operates in various sectors, including industrial manufacturing, logistics, and property investment. Its core products encompass a range of metal components and hardware used in construction and industrial applications, catering to both domestic and international markets.

How the Company Makes Money

Guan Chao Holdings Limited generates revenue through several key streams. Primarily, the company profits from the manufacturing and sales of metal products, which constitute a significant portion of its operations. Additionally, the company engages in trading activities, importing and exporting various metal goods, which further contributes to its income. The logistics services offered by Guan Chao facilitate the distribution of its products, enhancing operational efficiency and generating additional revenue. Furthermore, the company invests in real estate, earning income from property leasing and capital appreciation. Strategic partnerships with suppliers and distributors in the metal industry also play a crucial role in expanding its market reach and optimizing its supply chain, thereby positively impacting its overall earnings.

Guan Chao Holdings Limited Financial Statement Overview

Summary

Guan Chao Holdings Limited is facing significant financial challenges. Revenue growth is inconsistent with declining profitability, and recent net losses have impacted financial stability. The balance sheet shows moderate leverage, but cash flow issues highlight the need for improved operational cash generation and cost management.

Income Statement

The income statement shows a mixed performance. The revenue growth has been inconsistent, with a decrease from 2021 to 2022, but a subsequent increase in 2023. Gross profit margin has decreased over the recent years, and the company reported a net loss in 2024. EBIT and EBITDA margins have also seen a decline, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet indicates moderate financial health. The debt-to-equity ratio has improved slightly, reflecting some deleveraging efforts, but remains a potential risk. Return on equity is negative in 2024 due to the net loss, while the equity ratio has been stable, suggesting a balanced use of equity financing.

Cash Flow

Cash flow performance is concerning as operating cash flow turned negative in 2024. There is no free cash flow growth due to zero capital expenditure, which suggests limited reinvestment in the business. The company needs to improve cash generation to support future growth and operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	250.89M	190.89M	180.88M	179.09M	246.44M	160.87M
Gross Profit	25.89M	21.30M	22.44M	23.75M	28.36M	18.41M
EBITDA	175.00K	2.60M	16.92M	9.70M	15.99M	7.19M
Net Income	-6.09M	-3.24M	7.75M	5.02M	9.99M	3.25M
Balance Sheet
Total Assets	179.21M	137.75M	153.94M	156.96M	114.77M	110.57M
Cash, Cash Equivalents and Short-Term Investments	21.22M	11.20M	12.97M	5.53M	6.61M	6.82M
Total Debt	55.94M	55.25M	71.58M	75.14M	44.30M	49.03M
Total Liabilities	77.26M	66.33M	81.94M	93.11M	55.92M	61.72M
Stockholders Equity	99.40M	70.86M	71.61M	63.85M	58.83M	48.84M
Cash Flow
Free Cash Flow	-11.37M	11.57M	4.49M	-34.30M	5.10M	3.66M
Operating Cash Flow	1.87M	16.45M	16.25M	-13.51M	10.49M	5.68M
Investing Cash Flow	-7.82M	575.00K	-2.44M	-17.72M	-4.72M	-1.28M
Financing Cash Flow	18.55M	-18.80M	-6.36M	30.15M	-5.98M	-7.24M

Guan Chao Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1872, the sentiment is Positive. The current price of 5.9 is above the 20-day moving average (MA) of 5.84, above the 50-day MA of 5.87, and above the 200-day MA of 3.85, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 51.55 is Neutral, neither overbought nor oversold. The STOCH value of 72.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1872.

Guan Chao Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1728	52 Neutral	HK$1.43B	-0.25	―	―	-9.07%	-26.94%
1872	51 Neutral	HK$3.66B	―	-8.58%	―	71.00%	-579.14%
3669	47 Neutral	$3.17B	-0.92	-26.57%	8.89%	-13.69%	-1296.59%
1268	45 Neutral	$2.30B	-0.70	-87.36%	3.15%	-14.04%	-4222.02%
3836	45 Neutral	HK$1.27B	―	-4.42%	4.25%	11.33%	56.94%
1771	45 Neutral	HK$153.00M	―	-8.81%	―	-24.42%	-115.68%

Guan Chao Holdings Limited Corporate Events

Guan Chao Holdings Limited Announces Change of Auditor

Guan Chao Holdings Limited announced a change in its auditing firm, with PricewaterhouseCoopers resigning due to a disagreement over audit fees for the financial year ending December 31, 2025. The company has appointed ZHONGHUI ANDA CPA Limited as the new auditor, effective November 21, 2025, after a thorough evaluation by the Audit Committee. This transition is not expected to impact the preparation of the company’s consolidated financial statements.

Guan Chao Holdings’ GROLAND Inc. Gains FDA Approval for U.S. Market Entry

Guan Chao Holdings Limited announced that its subsidiary, GROLAND Inc., has successfully obtained a Certificate of Cosmetic Product Listing from Zoop Technical Service for its ‘Groland AquaKine Scalp Serum.’ This certification, in compliance with the FDA’s Modernization of Cosmetics Regulation Act of 2022, allows the product to enter the U.S. market. The registration of active compounds XTP-118 and XTP-016 further strengthens the company’s market positioning, enabling safe and compliant product offerings. This milestone not only enhances the company’s ability to promote its brand but also lays the groundwork for future global expansion.

Guan Chao Holdings’ Subsidiary Recognized as Technology-Based SME

Guan Chao Holdings Limited announced that its subsidiary, Guangzhou Jinghong, has been included in the list of technology-based small and medium-sized enterprises (SMEs) by the Department of Science and Technology of Guangdong Province. This inclusion is expected to provide the company with access to beneficial policies such as tax incentives and financial subsidies, enhancing its market competitiveness and supporting its development plans.

Guan Chao Holdings Announces Board and Committee Roles

Guan Chao Holdings Limited has announced the composition of its board of directors and the roles within its three board committees. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This announcement reflects the company’s commitment to maintaining a structured governance framework, which is crucial for its operational integrity and stakeholder confidence.

Guan Chao Holdings Announces Board Changes

Guan Chao Holdings Limited has announced changes in its board composition, effective from October 21, 2025. Ms. Ng Hui Bin Audrey has resigned as an executive director to focus on other commitments, while Ms. Dong Wenying has been appointed as a non-executive director. Ms. Dong brings significant experience in the financial sector, particularly in private equity and venture capital investments, which may enhance the company’s strategic decision-making and investment capabilities.