Centenary United Holdings Limited (1959) AI Stock Analysis

• Market Cap: HK$167.71M
• Dividend Yield: N/A
• Average Volume (3M): 12.27K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.24
• Revenue Growth: -24.60%
• EPS Growth: -67.92%
• Country: HK
• Employees: 526
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Dealerships
• EPS (TTM): -0.19
• Shares Outstanding: 508,202,000
• 10 Day Avg. Volume: 23,800
• 30 Day Avg. Volume: 12,266
• PEG Ratio: <0.01
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.80
• 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: 39 Underperform
• Price Target: ―

Centenary United Holdings Limited faces significant challenges with declining financial performance, as evidenced by negative margins and high leverage. Technical analysis indicates bearish momentum with the stock trading below key moving averages. Valuation metrics underscore the risk with a negative P/E ratio and no dividend yield. The overall score reflects a need for caution and strategic shifts to address these issues.

Centenary United Holdings Limited Business Overview & Revenue Model

Company Description

Centenary United Holdings Limited operates as an integrated auto service provider in Zhongshan, the People's Republic of China. The company sells new and used motor vehicles, as well as accessories, spare parts, car care services, and used vehicle warranty services; and provides repair and maintenance, insurance agency, and other services. It focuses on new energy brand mid-to-high end sino-foreign and international brands. The company also provides enterprise management information and enterprise investment consulting services. It operates through 4S dealership outlets, quick fix service points, and an insurance agency company in Zhongshan. The company was founded in 1999 and is headquartered in Zhongshan, the People's Republic of China.

How the Company Makes Money

Centenary United Holdings Limited Financial Statement Overview

Summary

Centenary United Holdings Limited is facing a challenging financial landscape with declining revenue, negative profitability, and cash flow. The pressures from the auto dealership industry and internal inefficiencies are reflected in the negative margins and high leverage. Immediate strategic changes are necessary to stabilize and improve financial performance.

Income Statement

The income statement shows a concerning trend with declining total revenue over recent years, dropping from approximately $2.07 billion in 2019 to $1.24 billion in 2024. Gross profit margin has decreased significantly, indicating potential pricing or cost issues. Net income has turned negative in recent years, with a net loss of $89.7 million in 2024. The company has also been struggling with negative EBIT and EBITDA margins, reflecting operational inefficiencies. Revenue growth rate is negative, highlighting a challenging environment for the company.

Balance Sheet

The balance sheet shows a weakening financial position. The debt-to-equity ratio has increased over the years, indicating rising leverage, which poses a risk in a declining revenue environment. Stockholders' equity has decreased, and the equity ratio has weakened, reflecting reduced financial stability. Return on equity has turned negative due to losses, further impacting investor confidence.

Cash Flow

Cash flow statements reveal significant challenges, with negative free cash flow in recent years indicating a lack of available funds for reinvestment or debt repayment. Operating cash flow has been inconsistent and is currently at zero, raising concerns about the company's ability to generate cash from its core operations. The free cash flow to net income ratio is unfavorable, and the absence of positive cash flow growth compounds the financial strain.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.24B	1.62B	2.00B	2.05B	1.91B
	Gross Profit
16.25M	90.06M	100.44M	118.96M	130.40M
	EBIT
-115.87M	-69.29M	-53.62M	-12.42M	26.32M
	EBITDA
-86.42M	14.63M	-24.25M	7.70M	41.13M
	Net Income Common Stockholders
-89.73M	-52.36M	-23.63M	2.68M	21.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
79.00M	109.34M	94.13M	69.64M	42.48M
	Total Assets
524.00M	860.99M	896.72M	801.90M	815.05M
	Total Debt
276.31M	278.55M	252.92M	253.38M	237.25M
	Net Debt
197.31M	169.21M	170.69M	188.35M	197.85M
	Total Liabilities
423.85M	671.52M	654.79M	538.64M	559.16M
	Stockholders Equity
100.07M	188.96M	240.53M	261.67M	253.79M
Cash Flow		Free Cash Flow
0.00	-7.19M	-71.72M	-17.32M	120.06M
	Operating Cash Flow
0.00	52.05M	1.40M	48.83M	145.15M
	Investing Cash Flow
0.00	-42.46M	-55.09M	-51.36M	-19.94M
	Financing Cash Flow
0.00	-31.24M	70.76M	28.10M	-115.18M

Centenary United Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.33
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1959, the sentiment is Positive. The current price of 0.33 is above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.33, and above the 200-day MA of 0.32, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.26 is Neutral, neither overbought nor oversold. The STOCH value of 69.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1959.

Centenary United Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0388	76 Outperform	HK$530.97B	37.47	27.96%	2.33%	19.20%	24.01%
2128	70 Outperform	HK$12.78B	7.00	7.12%	4.83%	-14.13%	-30.69%
2314	68 Neutral	$9.66B	7.36	4.75%	4.02%	4.24%	25.30%
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%
1030	59 Neutral	HK$16.19B	30.46	1.07%	―	-26.43%	―
1959	39 Underperform	HK$167.71M	―	-61.86%	―	-24.60%	-67.92%

Centenary United Holdings Limited Corporate Events

Centenary United Holdings Announces 2025 AGM and Key Resolutions

Centenary United Holdings Limited has announced its upcoming annual general meeting scheduled for May 23, 2025, in Zhongshan, Guangdong Province, China. The meeting will address several key resolutions, including the approval of the company’s audited financial statements for 2024, re-election of directors, and re-appointment of Ernst & Young as auditors. Additionally, the company seeks authorization for directors to manage the issuance of additional shares, reflecting strategic flexibility in capital management.

Centenary United Holdings Reports Significant Revenue Decline in 2024

Centenary United Holdings Limited reported its annual financial results for the year ended December 31, 2024, showing a significant decline in revenue and profit. The company’s revenue decreased by approximately RMB376.7 million compared to the previous year, with motor vehicle sales contributing to a major portion of this decline. The gross profit also saw a substantial drop, and the company reported a loss attributable to equity shareholders of approximately RMB89.7 million. These results indicate a challenging year for the company, impacting its financial stability and market positioning.

Centenary United Holdings Issues Profit Warning Amid Market Challenges

Centenary United Holdings Limited, a company listed on the Hong Kong Stock Exchange, has issued a profit warning for the fiscal year ending December 31, 2024. The company anticipates a significant decline in revenue and an increase in net loss compared to the previous year, primarily due to macroeconomic challenges in China and a competitive price war in the automotive market, which have adversely affected vehicle sales and prices. Additionally, the company has made impairment provisions on certain long-term assets as part of its strategy to streamline operations by closing inefficient stores. This announcement serves as a preliminary assessment, with final results expected to be published by the end of March 2025.

Centenary United Holdings Issues Profit Warning Amid Market Challenges

Centenary United Holdings Limited has issued a profit warning, indicating a significant decline in financial performance for the year ending December 31, 2024. The company anticipates revenues of approximately RMB 1,242 million and a net loss of RMB 88 to 92 million, compared to revenues of RMB 1,619 million and a net loss of RMB 53 million in the previous year. The decline is attributed to macroeconomic factors in China and a price war in the automotive market, leading to decreased sales and prices, as well as strategic adjustments resulting in impairment provisions for underperforming stores.

Centenary United Holdings Schedules Board Meeting for Annual Results

Centenary United Holdings Limited has announced a board meeting scheduled for March 28, 2025, to discuss and approve the annual results for the year ending December 31, 2024. The meeting will also consider the recommendation for a final dividend payment, which could impact shareholder returns and reflect the company’s financial health.