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Guan Chao Holdings Limited (HK:1872)
:1872
Hong Kong Market

Guan Chao Holdings Limited (1872) AI Stock Analysis

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HK

Guan Chao Holdings Limited

(1872)

Rating:55Neutral
Price Target:
HK$4.50
▲(1.58%Upside)
The stock score reflects significant financial challenges with inconsistent revenue and negative cash flow impacting financial stability. However, technical analysis shows positive momentum, offering some optimism. Valuation concerns due to negative earnings and lack of dividends weigh down the score.

Guan Chao Holdings Limited (1872) vs. iShares MSCI Hong Kong ETF (EWH)

Guan Chao Holdings Limited Business Overview & Revenue Model

Company DescriptionGuan Chao Holdings Limited is an investment holding company primarily engaged in the automotive industry. The company operates mainly through its subsidiaries and is involved in the sale of motor vehicles, provision of motor vehicle financing services, and provision of motor vehicle leasing services. Its operations are primarily based in Singapore, where it has established a strong presence in the automotive retail market.
How the Company Makes MoneyGuan Chao Holdings Limited generates revenue through the sale of both new and pre-owned motor vehicles, which constitutes a significant portion of its income. Additionally, the company offers motor vehicle financing services, which include providing loans to customers for purchasing vehicles, thereby earning interest income. The company also engages in motor vehicle leasing services, allowing customers to lease vehicles for a specified period, generating recurring rental income. These diversified revenue streams, along with strategic partnerships with automotive manufacturers and financial institutions, contribute to the company's profitability.

Guan Chao Holdings Limited Financial Statement Overview

Summary
The company is facing significant financial challenges with inconsistent revenue growth and declining profitability. Net losses and negative operating cash flow in 2024 highlight financial instability, while moderate balance sheet health indicates manageable leverage but poor cash flow performance.
Income Statement
45
Neutral
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
55
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue190.89M180.88M179.09M246.44M160.87M
Gross Profit21.30M22.44M23.75M28.36M18.41M
EBITDA2.60M16.92M9.70M15.99M7.19M
Net Income-3.24M7.75M5.02M9.99M3.25M
Balance Sheet
Total Assets137.75M153.94M156.96M114.77M110.57M
Cash, Cash Equivalents and Short-Term Investments11.20M12.97M5.53M6.61M6.82M
Total Debt55.25M71.58M75.14M44.30M49.03M
Total Liabilities66.33M81.94M93.11M55.92M61.72M
Stockholders Equity70.86M71.61M63.85M58.83M48.84M
Cash Flow
Free Cash Flow11.57M4.49M-34.30M5.10M3.66M
Operating Cash Flow16.45M16.25M-13.51M10.49M5.68M
Investing Cash Flow575.00K-2.44M-17.72M-4.72M-1.28M
Financing Cash Flow-18.80M-6.36M30.15M-5.98M-7.24M

Guan Chao Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.43
Price Trends
50DMA
3.91
Positive
100DMA
2.57
Positive
200DMA
1.75
Positive
Market Momentum
MACD
0.25
Positive
RSI
50.18
Neutral
STOCH
18.58
Positive
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 4.43 is below the 20-day moving average (MA) of 4.53, above the 50-day MA of 3.91, and above the 200-day MA of 1.75, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 50.18 is Neutral, neither overbought nor oversold. The STOCH value of 18.58 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
$3.37B4.05-1.30%6.64%0.16%-63.79%
55
Neutral
HK$2.49B35.25-4.62%5.65%-209.76%
54
Neutral
$3.88B18.161.44%7.27%-14.25%-65.33%
52
Neutral
$1.43B
-15.73%-73.42%
52
Neutral
$3.00B40.67-56.58%2.16%-23.89%-1698.95%
47
Neutral
HK$965.76M-5.36%5.61%-7.58%-21.25%
46
Neutral
HK$174.00M-9.04%-23.03%-1842.08%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1872
Guan Chao Holdings Limited
4.43
4.21
1913.64%
HK:1771
Sunfonda Group Holdings Ltd.
0.29
-0.30
-50.85%
HK:1728
China Zhengtong Auto Services Holdings
0.14
-0.06
-29.56%
HK:3669
China Yongda Automobiles Services
2.07
0.55
36.54%
HK:1268
China MeiDong Auto Holdings
2.21
0.25
12.93%
HK:3836
China Harmony Auto Holding Limited
0.66
0.19
40.43%

Guan Chao Holdings Limited Corporate Events

Guan Chao Holdings Extends Deadline for Share Placement
Jul 4, 2025

Guan Chao Holdings Limited has announced a further extension of the Long Stop Date for the placement of up to 90,195,000 new shares under a general mandate. This extension, agreed upon with the Placing Agent, is necessary to fulfill the conditions precedent in the Placing Agreement, moving the deadline to 11 July 2025. The completion of this placement remains uncertain as it is contingent on meeting these conditions, and stakeholders are advised to exercise caution.

Guan Chao Holdings Announces Board Changes
Jul 2, 2025

Guan Chao Holdings Limited has announced a significant change in its board composition, effective from July 2, 2025. Mr. Zhong Lili will resign from his roles as an independent non-executive director, chairperson of the Remuneration Committee, and a member of both the Audit and Nomination Committees, to focus on other commitments. Mr. Wu Qing will take over these positions, bringing extensive experience in investment and capital operations from his previous roles in various financial institutions. This transition is expected to bring fresh perspectives to the company’s strategic direction.

Guan Chao Holdings Limited Announces Board Composition and Roles
Jul 2, 2025

Guan Chao Holdings Limited has announced the composition of its board of directors and their respective roles within the company. The board comprises both executive and independent non-executive directors, with specific members chairing the audit, remuneration, and nomination committees. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership dynamics and decision-making processes within Guan Chao Holdings Limited.

Guan Chao Holdings Extends Deadline for Share Placement
Jun 27, 2025

Guan Chao Holdings Limited has announced a further extension of the Long Stop Date for the placing of up to 90,195,000 new shares under a general mandate. This extension, agreed upon with Fortune (HK) Securities Limited, moves the deadline to July 4, 2025, due to additional time needed to fulfill conditions precedent in the Placing Agreement. The completion of this placing is contingent upon these conditions being met, and there is no guarantee that the placing will proceed, urging shareholders and potential investors to exercise caution.

Guan Chao Holdings Extends Long Stop Date for Share Placement
Jun 20, 2025

Guan Chao Holdings Limited has announced an extension of the Long Stop Date for the placement of up to 90,195,000 new shares under a general mandate. This extension, agreed upon with the Placing Agent, allows more time to fulfill the conditions precedent in the Placing Agreement, moving the deadline to 27 June 2025. The completion of this share placement is contingent on meeting these conditions, and the company advises shareholders and potential investors to exercise caution as the placement may or may not proceed.

Guan Chao Holdings Revises Share Placement and Allocates Proceeds for Strategic Growth
Jun 17, 2025

Guan Chao Holdings Limited has revised the number of new shares to be placed from 112,300,000 to 90,195,000 under a general mandate. The proceeds from this placement, estimated at HK$383.96 million, will be allocated towards developing production lines, investing in hydrogen production equipment, expanding into hair growth products, and pursuing strategic mergers and acquisitions.

Guan Chao Holdings Limited Announces Share Placement to Fund Strategic Initiatives
May 30, 2025

Guan Chao Holdings Limited has announced a placement of new shares under a general mandate, with plans to issue up to 112,300,000 shares at a price of HK$4.30 each. The proceeds, estimated at approximately HK$478.06 million after expenses, will be used for various strategic initiatives, including developing production lines for chip manufacturing, investing in hydrogen production equipment, expanding a new hair growth product business, and enhancing working capital.

Guan Chao Holdings Expands IP Portfolio with New Agreements
May 26, 2025

Guan Chao Holdings Limited announced that its subsidiary, BetaMind Investments Limited, has entered into three definitive agreements to expand its intellectual property portfolio. These agreements include a trademark license for the ‘Groland’ brand and exclusive authorization agreements for the global use of specific cyclic peptide and carbamate compounds. The agreements are effective for twelve months, allowing BetaMind to engage in research, development, and commercialization activities, potentially enhancing the company’s market positioning and operational capabilities.

Guan Chao Holdings Explores Strategic Acquisition with Infinity Energy
May 22, 2025

Guan Chao Holdings Limited announced that its subsidiary, BetaTech Investments Limited, has entered into a non-legally binding memorandum of understanding with Infinity Energy Solutions Limited to potentially acquire a 30% equity interest in AIMI Investments Limited. The acquisition aims to enhance Guan Chao’s strategic positioning, with the preliminary valuation of the equity interest estimated at no more than HK$200 million. The agreement includes an exclusivity period during which Infinity Energy cannot negotiate with other parties, highlighting the company’s commitment to this potential transaction.

Guan Chao Holdings Secures Unanimous Approval at AGM
May 21, 2025

Guan Chao Holdings Limited announced that all proposed resolutions were successfully passed during their Annual General Meeting held on May 21, 2025. The resolutions included the adoption of the financial statements for the year ending December 31, 2024, re-election of directors, authorization of director remuneration, re-appointment of PricewaterhouseCoopers as auditors, and granting a mandate to issue additional shares. The unanimous approval of these resolutions reflects strong shareholder support and positions the company for continued stability and potential growth.

Guan Chao Holdings’ AlphaMind AI Secures Key MOUs for Global Expansion
May 13, 2025

Guan Chao Holdings Limited announced that its subsidiary, AlphaMind AI, has entered into two non-legally binding memoranda of understanding with Shenzhen Jingtai and Shenzhen Lizhi Ruiya. These agreements aim to secure exclusive licenses for significant patents and trademarks, enabling AlphaMind AI to develop and commercialize proprietary compounds and related products globally. The potential transactions are expected to enhance the company’s market positioning and operational capabilities, with further negotiations and due diligence to formalize the agreements.

Guan Chao Holdings Appoints CarNow as Non-Exclusive Dealer for Pre-Owned Vehicles
Apr 30, 2025

Guan Chao Holdings Limited has entered into a Framework Agreement with CarNow, appointing them as a non-exclusive dealer for the procurement of pre-owned motor vehicles. This transaction, due to its connected nature involving family members of the company’s executive director, requires independent shareholders’ approval as it surpasses certain financial thresholds under the Listing Rules.

Guan Chao Holdings Announces Share Scheme Changes and Clarification
Apr 29, 2025

Guan Chao Holdings Limited announced a clarification regarding an oversight in their Existing Share Option Scheme, specifically related to the Scheme Mandate Limit, which did not receive the necessary confirmation from the Stock Exchange. As a result, the company will withdraw the resolution related to this issue from the AGM Notice and remove related disclosures. Additionally, the company plans to adopt new 2025 Share Schemes and terminate the existing scheme to align with the latest Listing Rules, pending shareholder approval.

Guan Chao Holdings Limited Announces 2025 AGM and Key Resolutions
Apr 14, 2025

Guan Chao Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 21, 2025, in Hong Kong. The meeting will cover several key resolutions, including the adoption of the company’s audited financial statements for 2024, re-election of directors, fixing director remuneration, and re-appointment of PricewaterhouseCoopers as the auditor. Additionally, the company seeks approval to authorize directors to allot and issue additional shares, subject to certain conditions. These resolutions aim to ensure the company’s governance and operational continuity, potentially affecting its market positioning and shareholder interests.

Guan Chao Holdings Completes Successful Share Placement
Apr 8, 2025

Guan Chao Holdings Limited has successfully completed the placing of 21,600,000 new shares at a price of HK$0.73 per share, raising approximately HK$15.6 million in net proceeds. These funds are intended to bolster the company’s working capital reserves, with the share placement not resulting in any new substantial shareholders, thus maintaining the existing shareholding structure.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025