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

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

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HK:1939

Tokyo Chuo Auction Holdings Ltd.

(1939)

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Neutral 44 (OpenAI - 4o)
Rating:44Neutral
Price Target:
HK$1.50
▲(4.17% Upside)
The overall stock score is primarily influenced by the company's challenging financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further weigh down the score. While there is some revenue growth and cash flow improvement, the lack of profitability and negative market momentum are significant concerns.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a strong market position and effective business model, enhancing long-term sustainability.
Balance Sheet Health
Low leverage and a strong equity base provide financial stability and flexibility for future growth opportunities.
Cash Flow Improvement
Positive operating cash flow suggests improved cash management and operational efficiency, supporting long-term financial health.
Negative Factors
Profitability Concerns
Negative profitability metrics indicate operational challenges that could hinder long-term growth and shareholder value.
Free Cash Flow Issues
Negative free cash flow growth suggests potential difficulties in funding operations and investments without external financing.
Return on Equity
Negative return on equity indicates poor efficiency in generating returns from shareholders' equity, impacting investor confidence.

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 sale of fine art, antiques, and collectibles. The company operates in the auction sector, offering a platform for both buyers and sellers to engage in the trading of valuable items. With a strong reputation for curating high-quality auctions, Tokyo Chuo Auction Holdings provides services that include appraisals, cataloging, and marketing of items, as well as hosting live and online auction events.
How the Company Makes MoneyTokyo Chuo Auction Holdings generates revenue primarily through commissions earned on sales during its auctions. When an item is sold, the company charges a seller's commission, which is a percentage of the final sale price, as well as a buyer's premium, an additional fee charged to the buyer on top of the winning bid. These commission structures provide a significant portion of the company's income. Additionally, the company may earn revenue through specialized appraisal services and consultations for high-value items. Partnerships with museums, galleries, and art institutions enhance its credibility and expand its client base, contributing to increased sales and auction participation.

Tokyo Chuo Auction Holdings Ltd. Financial Statement Overview

Summary
The company shows mixed financial performance. Revenue growth is positive, but profitability is a concern with negative net profit and EBIT margins. The balance sheet is stable with low leverage, but cash flow improvements are needed for stronger financial health.
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
Negative
Last Price1.44
Price Trends
50DMA
7.13
Negative
100DMA
7.38
Negative
200DMA
4.56
Negative
Market Momentum
MACD
-1.82
Positive
RSI
13.76
Positive
STOCH
8.31
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1939, the sentiment is Negative. The current price of 1.44 is below the 20-day moving average (MA) of 4.28, below the 50-day MA of 7.13, and below the 200-day MA of 4.56, indicating a bearish trend. The MACD of -1.82 indicates Positive momentum. The RSI at 13.76 is Positive, neither overbought nor oversold. The STOCH value of 8.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
79
Outperform
HK$388.30M6.1817.60%2.72%17.38%15.93%
64
Neutral
HK$670.17M45.051.04%-36.58%-84.25%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
54
Neutral
HK$169.05M-250.00-0.06%-14.12%-104.76%
44
Neutral
HK$231.12M-18.20-3.11%50.72%-434.09%
44
Neutral
HK$4.19B-215.42-7.74%85.29%39.63%
39
Underperform
HK$552.71M-17.34-3.08%-33.28%91.18%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1939
Tokyo Chuo Auction Holdings Ltd.
1.37
0.67
95.71%
HK:1572
China Art Financial Holdings Ltd
0.10
0.01
13.95%
HK:1759
Sino Gas Holdings Group Limited
1.06
0.56
112.00%
HK:1861
Precious Dragon Technology Holdings Ltd.
2.00
0.83
70.94%
HK:2101
Fulu Holdings Limited
1.26
-0.37
-22.70%
HK:0620
DTXS Silk Road Investment Holdings Company Limited
0.59
0.33
126.92%

Tokyo Chuo Auction Holdings Ltd. Corporate Events

Shangshan Gold Announces Decrease in Controlling Shareholder’s Stake
Dec 4, 2025

Shangshan Gold International Holdings Ltd. has announced a decrease in shareholding by its controlling shareholder due to an on-market forced sale by a financier. This development may affect the company’s stock market performance, and stakeholders are advised to exercise caution in dealing with the company’s securities.

Shangshan Gold’s Controlling Shareholder Reduces Stake
Dec 4, 2025

Shangshan Gold International Holdings Ltd. announced that its controlling shareholder, Mr. Huang Shikun, has reduced his shareholding by disposing of 41,408,000 ordinary shares, which constitutes approximately 8.09% of the company’s total issued share capital. Despite this reduction, Mr. Huang remains the controlling shareholder, and the company does not anticipate any negative impact on its business operations due to this transaction.

Shangshan Gold Announces Change in Hong Kong Office Address
Dec 3, 2025

Shangshan Gold International Holdings Limited has announced a change in its registered office address and contact details in Hong Kong, effective from December 4, 2025. This relocation might impact the company’s operational logistics and communication strategies, potentially affecting stakeholders who rely on these contact points for business interactions.

Shangshan Gold International Holdings Sees Revenue Surge in H1 2025
Nov 27, 2025

Shangshan Gold International Holdings Limited reported a significant increase in revenue for the six months ended September 30, 2025, with unaudited consolidated revenue reaching approximately HK$76.5 million, a 139.8% increase from the same period in 2024. The company also turned a profit of approximately HK$427,000 compared to a loss in the previous year, though no interim dividend was declared. This financial improvement suggests a positive shift in the company’s operational performance and could enhance its positioning within the auction industry.

Shangshan Gold Reports Positive Profit Turnaround
Nov 18, 2025

Shangshan Gold International Holdings Limited has announced a positive profit alert, indicating a significant turnaround in its financial performance for the six months ended 30 September 2025. The company expects to report a consolidated net profit of approximately HK$0.4 million, compared to a net loss of HK$1.1 million in the same period of 2024. This improvement is attributed to a 139.8% increase in revenue, driven by substantial growth in its art auction and related business, artwork sales, and a new contribution from its gold-related business.

Shangshan Gold International to Review Interim Results and Dividend
Nov 12, 2025

Shangshan Gold International Holdings Limited has announced that its board of directors will meet on November 27, 2025, to approve the unaudited interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Shangshan Gold Completes HK$90 Million Share Placement for Global Expansion
Nov 6, 2025

Shangshan Gold International Holdings Limited has completed the placing of 11,880,000 new shares, representing approximately 2.32% of its enlarged issued share capital, at a price of HK$7.71 per share. The net proceeds of approximately HK$90 million will be used for global channel layout and brand system construction, including the development of flagship stores and branding efforts, as well as technology upgrades and the relocation of the global headquarters. This strategic move aims to enhance the company’s market presence and operational capabilities.

Shangshan Gold Adjusts Share Placement Terms Amid Market Conditions
Oct 20, 2025

Shangshan Gold International Holdings Limited has announced a supplemental agreement to its previous placing agreement, which involves the issuance of new shares under a general mandate. The company has extended the long stop date to fulfill conditions precedent to November 10, 2025, reduced the number of placing shares from 37,825,421 to 11,880,000, and adjusted the placing price to HK$7.71 per share. These changes reflect the company’s response to prevailing market conditions and aim to optimize the share placement process, potentially impacting its market positioning and stakeholder interests.

Tokyo Chuo Auction Holdings Announces New Share Placement
Sep 30, 2025

Tokyo Chuo Auction Holdings Ltd., incorporated in Hong Kong, has announced the placement of new shares under a general mandate. The company has entered into an agreement with a placing agent to issue up to 37,825,421 shares at a price of HK$6.53 per share, representing approximately 7.57% of the total issued shares. The gross proceeds from this placement are expected to be around HK$247 million, with net proceeds estimated at HK$245.8 million. This strategic move aims to strengthen the company’s financial position, although the completion of the placement is subject to certain conditions.

Shangshan Gold Expands Global Reach with Kinghood Trademark Licensing
Sep 16, 2025

Shangshan Gold International Holdings Limited has announced a trademarks licensing agreement with Shenzhen Kinghood Holding Group Company Limited, allowing its subsidiary, Shangshan Technology, to use Kinghood’s trademarks outside mainland China. This strategic move aims to expand Shangshan’s overseas market presence and leverage Kinghood’s brand influence in the international jewelry and gold industries, potentially accelerating the application of relevant technologies and products and creating new growth opportunities for the company.

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: Dec 05, 2025