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Tokyo Chuo Auction Holdings Ltd. (HK:1939)
:1939
Hong Kong Market
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Tokyo Chuo Auction Holdings Ltd. (1939) AI Stock Analysis

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HK:1939

Tokyo Chuo Auction Holdings Ltd.

(1939)

Rating:55Neutral
Price Target:
HK$9.50
▲(13.10% Upside)
The overall stock score is primarily influenced by the company's challenging financial performance, marked by profitability issues despite revenue growth and a strong balance sheet. Technical analysis indicates strong bullish momentum, but overbought conditions could pose risks. Valuation is a concern due to negative earnings and lack of dividends, impacting the stock's attractiveness.

Tokyo Chuo Auction Holdings Ltd. (1939) vs. iShares MSCI Hong Kong ETF (EWH)

Tokyo Chuo Auction Holdings Ltd. Business Overview & Revenue Model

Company DescriptionTokyo Chuo Auction Holdings Ltd. (1939) is a prominent auction house based in Japan, specializing in the auctioning of fine art, antiques, and collectibles. The company operates primarily within the auction and appraisal sectors, catering to both individual collectors and institutional clients. With a focus on high-value items, Tokyo Chuo Auction is known for its expertise in Japanese art and culture, offering a platform for sellers to reach a global audience of buyers through live and online auctions.
How the Company Makes MoneyTokyo Chuo Auction Holdings Ltd. generates revenue primarily through auction commissions, which are fees charged to sellers and buyers based on the final sale price of auctioned items. The company earns a percentage of the hammer price from each sale, typically taking a commission from both the seller and the buyer. Additionally, Tokyo Chuo Auction may generate income through appraisal services, where it charges fees for evaluating and authenticating artworks and collectibles. Strategic partnerships with galleries, museums, and cultural institutions also enhance its visibility and potential revenue streams. The company's ability to attract high-value consignments and a discerning clientele contributes significantly to its profitability.

Tokyo Chuo Auction Holdings Ltd. Financial Statement Overview

Summary
The company shows positive revenue growth and a strong gross profit margin, but struggles with profitability due to negative net profit and EBIT margins. The balance sheet is stable with low leverage, yet the negative return on equity indicates inefficiencies. Cash flow has improved, but free cash flow growth remains negative.
Income Statement
45
Neutral
The company shows a mixed performance in its income statement. Revenue growth is positive at 7.82% for the latest period, indicating some recovery. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains strong at 78.14%, but the negative EBIT and net profit margins highlight ongoing operational challenges.
Balance Sheet
60
Neutral
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.20, indicating low leverage. However, the return on equity is negative, suggesting inefficiencies in generating returns from equity. The equity ratio is healthy, showing a strong equity base relative to total assets.
Cash Flow
50
Neutral
Cash flow analysis reveals a significant improvement in operating cash flow, turning positive in the latest period. However, free cash flow growth is negative, and the free cash flow to net income ratio is close to 1, indicating that cash generation is not yet robust. The operating cash flow to net income ratio is also positive, showing some improvement in cash conversion.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue57.55M62.05M57.85M72.76M79.60M80.75M
Gross Profit44.23M48.48M46.78M53.32M68.97M70.02M
EBITDA-26.07M-11.68M-18.60M-541.00K22.26M23.52M
Net Income-29.64M-19.46M-26.89M-8.29M8.43M8.36M
Balance Sheet
Total Assets432.27M394.96M396.64M466.00M581.08M594.65M
Cash, Cash Equivalents and Short-Term Investments73.77M76.46M69.05M67.28M108.70M153.63M
Total Debt49.44M43.80M52.25M53.44M68.99M85.47M
Total Liabilities189.66M170.38M157.69M202.91M297.06M308.19M
Stockholders Equity239.10M221.30M235.64M259.32M279.94M282.24M
Cash Flow
Free Cash Flow-32.55M37.05M-10.93M-17.25M-24.19M51.60M
Operating Cash Flow-30.09M37.16M-6.16M-16.52M-23.29M60.79M
Investing Cash Flow-2.24M590.00K-4.55M-549.00K1.69M-7.36M
Financing Cash Flow577.00K-9.56M-6.88M-18.65M-18.74M20.01M

Tokyo Chuo Auction Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.40
Price Trends
50DMA
6.08
Positive
100DMA
3.60
Positive
200DMA
2.07
Positive
Market Momentum
MACD
0.74
Positive
RSI
60.17
Neutral
STOCH
52.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1939, the sentiment is Positive. The current price of 8.4 is below the 20-day moving average (MA) of 8.56, above the 50-day MA of 6.08, and above the 200-day MA of 2.07, indicating a neutral trend. The MACD of 0.74 indicates Positive momentum. The RSI at 60.17 is Neutral, neither overbought nor oversold. The STOCH value of 52.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1939.

Tokyo Chuo Auction Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$397.66M6.7017.60%2.12%17.38%15.93%
66
Neutral
HK$612.96M27.831.57%-36.89%-78.29%
61
Neutral
$17.75B12.51-5.49%3.06%1.43%-14.10%
58
Neutral
HK$211.31M43.100.41%16.97%-59.72%
55
Neutral
HK$4.20B-8.52%7.26%27.70%
48
Neutral
HK$216.00M39.77-3.26%14.00%-239.86%
HK$660.80M-2.73%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1939
Tokyo Chuo Auction Holdings Ltd.
8.40
7.69
1083.10%
HK:1572
China Art Financial Holdings Ltd
0.12
0.02
20.00%
HK:1759
Sino Gas Holdings Group Limited
1.23
0.73
146.00%
HK:1861
Precious Dragon Technology Holdings Ltd.
1.70
-0.17
-9.09%
HK:2101
Fulu Holdings Limited
1.50
-0.37
-19.79%
HK:0620
DTXS Silk Road Investment Holdings Company Limited
0.82
0.58
241.67%

Tokyo Chuo Auction Holdings Ltd. Corporate Events

Tokyo Chuo Auction Expands into Gold and Intelligent Equipment Market
Aug 15, 2025

Tokyo Chuo Auction Holdings Ltd. has established a wholly-owned subsidiary, Hong Kong Shangshan Technology Development Co., Limited, to enter the gold and intelligent equipment market. This strategic move aims to diversify the company’s business, reduce reliance on a single revenue stream, and enhance its global market presence. The initiative aligns with the company’s long-term development strategy and is expected to improve operational performance and attract international investors, although it may not significantly impact financial results in the short term.

Tokyo Chuo Auction Holdings Ltd. Reports Unanimous Approval of AGM Resolutions
Aug 13, 2025

Tokyo Chuo Auction Holdings Ltd. announced the successful passing of all proposed resolutions at their Annual General Meeting held on August 13, 2025. The meeting saw full participation with 500,000,000 shares entitled to vote, and all resolutions, including the re-election of directors, were unanimously approved without any opposition. This outcome reflects strong shareholder support and stability within the company’s governance structure.

Tokyo Chuo Auction Holdings Ltd. Announces 2025 Annual General Meeting
Jul 21, 2025

Tokyo Chuo Auction Holdings Ltd. has announced its upcoming annual general meeting, scheduled for August 13, 2025, in Hong Kong. The meeting will address several key resolutions, including the approval of the company’s audited financial statements, the re-election of directors, and the reappointment of auditors. Additionally, the company seeks approval to authorize directors to allot and issue additional shares, which could impact its capital structure and shareholder value.

Tokyo Chuo Auction Holdings Proposes Name Change to Enhance Corporate Image
Jul 4, 2025

Tokyo Chuo Auction Holdings Ltd. has announced a proposal to change its English name to Shangshan Gold International Holdings Limited and its Chinese name to 上善黃金國際控股有限公司. This change is contingent upon shareholder approval at the upcoming AGM and the issuance of a certificate of change of name by the Companies Registry in Hong Kong. The board believes that the new name will enhance the company’s corporate image and support future business development.

Tokyo Chuo Auction Holdings Reports Improved Revenue but Sustains Net Loss
Jun 30, 2025

Tokyo Chuo Auction Holdings Ltd. reported its annual results for the year ending March 31, 2025, showing a 7.3% increase in revenue to HK$62,051,000 and a 3.6% rise in gross profit. Despite these gains, the company recorded a net loss of HK$19,494,000, though this was an improvement from the previous year. The loss per share decreased by 27.7%, indicating some operational improvements. The results reflect ongoing challenges in managing costs and impairments, impacting the company’s financial performance.

Tokyo Chuo Auction Holdings Ltd. Completes Share Acquisition Offers
Jun 20, 2025

Tokyo Chuo Auction Holdings Ltd. has announced the closure of mandatory unconditional cash offers by Essa Financial Group Ltd. to acquire all issued shares and cancel outstanding share options, excluding those already owned by Essa and its affiliates. The offers concluded with Essa acquiring approximately 0.8% of the company’s issued share capital and 100% of the share options, leading to changes in the company’s board and authorized representatives.

Tokyo Chuo Auction Holdings Ltd. Announces Upcoming Board Meeting
Jun 13, 2025

Tokyo Chuo Auction Holdings Ltd. has announced a board meeting scheduled for June 30, 2025, to approve the company’s final results for the fiscal year ending March 31, 2025. The meeting will also consider the recommendation of a final dividend, highlighting the company’s ongoing financial management and potential returns for stakeholders.

Tokyo Chuo Auction Holdings Ltd. Announces Cash Offers and Board Changes
May 30, 2025

Tokyo Chuo Auction Holdings Ltd. announced the dispatch of a composite document detailing mandatory unconditional cash offers by Essa Financial Group Ltd. to acquire all issued shares and cancel outstanding share options. This move includes a change in board composition and is expected to impact the company’s market positioning and shareholder dynamics.

Tokyo Chuo Auction Holdings Ltd. Announces Board Composition and Roles
May 30, 2025

Tokyo Chuo Auction Holdings Ltd. has announced the composition of its board of directors, highlighting the roles and functions of each member. The board consists of executive, non-executive, and independent non-executive directors, with specific members assigned to various committees such as audit, remuneration, nomination, and corporate governance. This announcement may impact the company’s governance structure and strategic decision-making, potentially influencing its market positioning and stakeholder relationships.

Tokyo Chuo Auction Holdings Delays Dispatch of Composite Document
May 23, 2025

Tokyo Chuo Auction Holdings Ltd. announced a delay in the dispatch of the Composite Document related to mandatory unconditional cash offers by Essa Financial Group Ltd. The delay is due to the need for additional time to finalize the document’s content, including a recommendation letter from Joint Independent Financial Advisers and statements on any material changes in the company’s financial or trading position. The deadline for dispatch has been extended to on or before June 6, 2025. This delay may impact stakeholders as they await further announcements regarding the progress of the offers.

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: Aug 06, 2025