China Renaissance Holdings (1911) AI Stock Analysis

• Market Cap: HK$2.72B
• Dividend Yield: N/A
• Average Volume (3M): 3.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.93
• Revenue Growth: 76.19%
• EPS Growth: 90.88%
• Country: HK
• Employees: 480
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.13
• Shares Outstanding: 573,347,800
• 10 Day Avg. Volume: 2,042,187
• 30 Day Avg. Volume: 3,266,852
• PEG Ratio: 0.12
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 1.67
• P/FCF Ratio: 74.36
• 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: 43 Neutral
• Price Target: HK$4.50 ▼(-0.88% Downside)

The overall stock score is primarily impacted by weak financial performance and poor valuation metrics. The bearish technical indicators further contribute to a negative outlook. While the balance sheet shows some strength, the lack of profitability and liquidity issues are significant concerns.

Positive Factors

Strong Equity Position

The absence of debt and a strong equity base reduce financial leverage risks, providing a stable foundation for future growth and resilience.

Market Position

A strong market position in China's innovative sectors enables sustained client acquisition and project flow, supporting long-term revenue growth.

Revenue Streams

Diverse revenue streams from advisory and asset management services enhance financial stability and reduce dependency on a single income source.

Negative Factors

Declining Revenue

A significant decline in revenue over recent years indicates challenges in maintaining market share and could impact long-term financial health.

Negative Profitability

Sustained negative profitability reflects operational inefficiencies and may hinder the company's ability to invest in growth opportunities.

Volatile Cash Flow

Volatile cash flow and zero operating cash flow in 2024 highlight liquidity risks, potentially affecting the company's operational stability.

China Renaissance Holdings Business Overview & Revenue Model

Company Description

China Renaissance Holdings Limited, an investment holding company, engages in investment banking and investment management businesses in Mainland China, Hong Kong, and the United States. It operates through Investment Banking, Investment Management, CR Securities, and Others segments. The Investment Banking segment offers financial advisory, and merger and acquisition advisory services; equity underwriting, sales, trading, brokerage, and research services; and structured financing services, which include exploring and developing non-equity financing services for new-economy firms. The Investment Management segment provides fund and asset management services for individual and institutional clients, as well as manages investment in funds. The CR Securities segment offers investment banking and asset management services. The Others provides wealth management services for high-net-worth individuals and other high net worth groups, as well as invests in and manages funds. The company serves startup and high-growth China-based companies, institutional secondary equity investors, and high net-worth individuals. China Renaissance Holdings Limited was founded in 2005 and is based in Beijing, China.

How the Company Makes Money

China Renaissance generates revenue through several key streams, primarily from advisory fees earned during mergers and acquisitions (M&A) and capital raising transactions. The company charges clients for its expertise in negotiating and structuring deals, which forms a significant portion of its income. Additionally, China Renaissance earns management fees and performance-based income from its asset management division, where it invests in high-potential companies. Strategic partnerships with tech firms and venture capitalists enhance its market position and provide access to lucrative investment opportunities, further contributing to its earnings. The firm's reputation and established network in China's innovative sectors allow it to attract a steady flow of clients and projects, supporting sustainable revenue growth.

China Renaissance Holdings Financial Statement Overview

Summary

China Renaissance Holdings is facing financial challenges, marked by declining revenues and profitability. The balance sheet provides some reassurance with a strong equity position and no debt in 2024, reducing leverage concerns. However, cash flow volatility and negative operating cash flow in recent periods highlight liquidity risks. Overall, while the company has a solid balance sheet, its income statement and cash flow performance suggest areas of significant concern.

Income Statement

The company has experienced declining revenue and profitability over the years. The revenue decreased from 1,744.48M in 2021 to 823.56M in 2024, indicating a negative growth trajectory. The net profit margin is negative in recent years, with net losses recorded in 2022, 2023, and 2024. EBIT margin remains negative, suggesting ongoing operational challenges. Gross profit margins have fluctuated, but the overall trend indicates financial struggles.

Balance Sheet

The balance sheet demonstrates some stability with a strong equity base and no debt recorded in 2024, which reduces leverage risks. The equity ratio is healthy, but stockholders' equity has slightly decreased over time. The debt-to-equity ratio was manageable in previous years and became more favorable as total debt was eliminated by 2024.

Cash Flow

The cash flow statement reveals a volatile cash flow situation with operating cash flow dropping to zero in 2024. Free cash flow was positive in 2023 but turned negative in previous years. The fluctuating cash flow metrics indicate potential liquidity issues and challenges in generating consistent cash inflows from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	980.73M	823.56M	848.26M	1.56B	1.74B	1.59B
Gross Profit	980.73M	823.56M	258.31M	1.36B	2.35B	2.72B
EBITDA	0.00	8.70M	-201.53M	-184.41M	2.07B	1.27B
Net Income	-40.21M	-179.02M	-471.90M	-429.90M	1.62B	1.04B
Balance Sheet
Total Assets	9.47B	10.56B	9.34B	13.08B	14.16B	12.54B
Cash, Cash Equivalents and Short-Term Investments	4.48B	4.37B	4.11B	5.60B	5.65B	4.79B
Total Debt	145.13M	42.44M	629.41M	2.47B	3.29B	1.52B
Total Liabilities	2.35B	3.51B	2.16B	5.54B	6.26B	5.16B
Stockholders Equity	6.11B	6.04B	6.14B	6.50B	6.83B	5.90B
Cash Flow
Free Cash Flow	-170.29M	18.48M	776.64M	-789.54M	1.64B	300.66M
Operating Cash Flow	-155.51M	42.96M	790.71M	-738.01M	1.70B	340.15M
Investing Cash Flow	9.29M	-33.70M	1.13B	327.83M	-1.03B	-521.37M
Financing Cash Flow	0.00	136.88M	-2.41B	-619.10M	1.12B	-95.69M

China Renaissance Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.54
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1911, the sentiment is Positive. The current price of 4.54 is above the 20-day moving average (MA) of 4.50, below the 50-day MA of 4.89, and below the 200-day MA of 5.20, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 58.11 is Neutral, neither overbought nor oversold. The STOCH value of 71.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1911.

China Renaissance Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3908	68 Neutral	HK$160.71B	10.72	8.93%	0.97%	64.00%	112.84%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6099	65 Neutral	HK$163.73B	12.15	9.41%	3.83%	51.04%	24.56%
6066	60 Neutral	HK$208.65B	12.02	13.03%	2.80%	36.57%	77.14%
6178	60 Neutral	HK$85.54B	13.44	5.22%	2.66%	30.38%	2.63%
1788	53 Neutral	HK$27.49B	38.67	4.78%	2.75%	32.03%	154.14%
1911	43 Neutral	HK$2.72B	-76.46	-0.67%	―	76.19%	90.88%

China Renaissance Holdings Corporate Events

China Renaissance Buys RMB308 Million of Distressed Consumer Loan Portfolios

China Renaissance Holdings has agreed to acquire two portfolios of distressed consumer assets comprising non-performing personal consumption loan receivables from two vendors for a total consideration of about RMB308.3 million. The first portfolio, with an outstanding principal balance of roughly RMB6.677 billion, and the second, with about RMB752 million in principal, are both made up entirely of unsecured loans owed by individual borrowers that are significantly overdue, and will be purchased in cash in staged payments. Classified as a discloseable transaction under Hong Kong listing rules, the deal signals the group’s increasing participation in the distressed debt market, potentially enhancing returns through recovery of deeply discounted assets while also increasing its exposure to unsecured retail credit risk.

The most recent analyst rating on (HK:1911) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Renaissance Holdings stock, see the HK:1911 Stock Forecast page.

China Renaissance Celebrates Mininglamp Technology’s Successful Hong Kong Listing

China Renaissance Holdings Limited announced that Mininglamp Technology, a company backed by its Huaxing Growth Capital Fund, has successfully listed on the Main Board of The Stock Exchange of Hong Kong. This achievement underscores China Renaissance’s confidence in Mininglamp’s technological capabilities and business model, as well as the strategic vision and management expertise of its investment team, highlighting the company’s commitment to delivering strong returns to investors.

The most recent analyst rating on (HK:1911) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on China Renaissance Holdings stock, see the HK:1911 Stock Forecast page.