Tokyo Chuo Auction Holdings Ltd. (1939) AI Stock Analysis

• Market Cap: HK$985.00M
• Dividend Yield: N/A
• Average Volume (3M): 5.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -3.32%
• EPS Growth: -107.34%
• Country: HK
• Employees: 36
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Specialty Retail
• EPS (TTM): >-0.01
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 2,831,730
• 30 Day Avg. Volume: 5,101,932
• PEG Ratio: 1.77
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.44
• 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

• Rating: 43 Neutral
• Price Target: ―

Tokyo Chuo Auction Holdings Ltd. faces significant financial and technical challenges, with declining revenues, negative profitability, and weak cash flows. The stock's technical indicators suggest overbought conditions despite a downward price trend. The negative P/E ratio and lack of dividend yield highlight valuation concerns, leading to an overall low score.

Tokyo Chuo Auction Holdings Ltd. Business Overview & Revenue Model

Company Description

Tokyo Chuo Auction Holdings Ltd., established in 1939, operates within the auction industry, specializing in the sale of fine art, antiques, and collectibles. The company conducts auctions that feature a wide array of items, including Chinese paintings, ceramics, and other valuable artifacts, catering to a global clientele of collectors and investors seeking unique pieces of cultural and historical significance.

How the Company Makes Money

Tokyo Chuo Auction Holdings Ltd. generates revenue primarily through the commissions and fees charged on the sales of items at its auctions. The company earns a percentage of the hammer price from both buyers and sellers, which constitutes a significant portion of its income. Additionally, the company may charge fees for cataloging, handling, and other services associated with the auction process. Strategic partnerships with art galleries, museums, and private collectors can also contribute to its earnings by facilitating exclusive sales and attracting high-value consignments to its auctions.

Tokyo Chuo Auction Holdings Ltd. Financial Statement Overview

Summary

Tokyo Chuo Auction Holdings Ltd. is experiencing financial difficulties, with declining revenues and profitability. The balance sheet shows some stability due to a strong equity base, but rising leverage poses a risk. Cash flow challenges are evident with persistent negative flows, necessitating strategic improvements to enhance liquidity and operational efficiency.

Income Statement

The company has experienced a declining revenue trend over the past years, with a significant drop in Total Revenue from 2020 to 2024. The Gross Profit Margin is relatively high, indicating efficient cost management. However, the company has suffered from negative Net Income in recent years, leading to negative Net Profit Margins and declining EBIT and EBITDA margins, highlighting profitability challenges.

Balance Sheet

The company maintains a strong equity position with a healthy Equity Ratio and Return on Equity. However, the Debt-to-Equity Ratio has increased slightly over time, indicating rising leverage. The company's Cash and Short-Term Investments provide a cushion against liabilities, but the declining Stockholders' Equity is a concern.

Cash Flow

The company has faced persistent negative Operating and Free Cash Flows. Although there is a slight improvement in Free Cash Flow compared to the previous year, the overall cash flow position remains weak. The Operating Cash Flow to Net Income Ratio is unfavorable, reflecting operational cash generation challenges.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
57.55M	57.85M	72.76M	79.60M	80.75M	107.59M
	Gross Profit
44.23M	46.78M	53.32M	68.97M	70.02M	75.94M
	EBIT
-28.38M	-25.91M	-8.49M	8.90M	17.20M	9.58M
	EBITDA
-26.07M	-18.60M	-541.00K	22.26M	23.52M	14.82M
	Net Income Common Stockholders
-29.64M	-26.89M	-8.29M	8.43M	8.36M	8.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
214.20M	69.05M	67.28M	108.70M	153.63M	82.58M
	Total Assets
374.06M	396.64M	466.00M	581.08M	594.65M	512.09M
	Total Debt
29.71M	52.25M	53.44M	68.99M	85.47M	62.09M
	Net Debt
-184.15M	3.51M	-13.84M	-39.70M	-68.16M	-20.48M
	Total Liabilities
266.32M	157.69M	202.91M	297.06M	308.19M	228.02M
	Stockholders Equity
98.31M	235.64M	259.32M	279.94M	282.24M	279.91M
Cash Flow		Free Cash Flow
-32.55M	-10.93M	-17.25M	-24.19M	51.60M	-146.21M
	Operating Cash Flow
-30.09M	-6.16M	-16.52M	-23.29M	60.79M	-144.68M
	Investing Cash Flow
-2.24M	-4.55M	-549.00K	1.69M	-7.36M	4.53M
	Financing Cash Flow
577.00K	-6.88M	-18.65M	-18.74M	20.01M	-14.61M

Tokyo Chuo Auction Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.97
• 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:1939, the sentiment is Positive. The current price of 1.97 is above the 20-day moving average (MA) of 1.32, above the 50-day MA of 1.12, and above the 200-day MA of 0.73, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 77.85 is Negative, neither overbought nor oversold. The STOCH value of 76.83 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
I07	61 Neutral	S$139.06M	16.23	4.17%	0.98%	8.98%	70.54%
1939	43 Neutral	HK$985.00M	―	-11.99%	―	-3.32%	-107.34%
0861	43 Neutral	HK$4.95B	―	-4.20%	0.70%	-10.06%	86.09%
0174	43 Neutral	HK$155.71M	―	-471.47%	―	-1.35%	85.51%

Tokyo Chuo Auction Holdings Ltd. Corporate Events

Tokyo Chuo Auction Holdings Ltd. Undergoes Major Ownership Change

Tokyo Chuo Auction Holdings Ltd. has completed the sale and purchase of 374,967,278 shares, representing approximately 74.99% of its total issued share capital, to ESSA Financial Group Ltd and other purchasers. Following this transaction, mandatory unconditional cash offers have been initiated by LEGO Securities Limited and Fortune Origin Securities Limited on behalf of ESSA Financial Group Ltd to acquire all remaining issued shares and to cancel all outstanding share options of Tokyo Chuo Auction Holdings Ltd. This move signifies a significant shift in the company’s ownership structure and may impact its strategic direction and market positioning.

Tokyo Chuo Auction Announces Trading Halt Pending Inside Information Release

Tokyo Chuo Auction Holdings Ltd. has announced a trading halt on its shares on the Hong Kong Stock Exchange, effective from April 23, 2025. This suspension is pending the release of an announcement containing inside information, which could have significant implications for the company’s operations and its stakeholders, as it relates to the rules governing securities listing and takeovers in Hong Kong.