Centenary United Holdings Limited (1959) AI Stock Analysis

• Market Cap: HK$748.34M
• Dividend Yield: N/A
• Average Volume (3M): 5.94M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.39
• Revenue Growth: -41.19%
• EPS Growth: 30.99%
• Country: HK
• Employees: 526
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.03
• Shares Outstanding: 527,002,000
• 10 Day Avg. Volume: 2,610,770
• 30 Day Avg. Volume: 5,941,790
• PEG Ratio: -0.03
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 1.88
• 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: 48 Neutral
• Price Target: HK$1.50 ▲(105.48% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, which is the most significant factor. While technical analysis shows some positive momentum, the overbought RSI and negative valuation metrics reflect underlying financial weaknesses.

Centenary United Holdings Limited Business Overview & Revenue Model

Company Description

Centenary United Holdings Limited (1959) is a diversified investment company based in [location]. The company operates across various sectors including real estate, hospitality, and retail, focusing on long-term growth and value creation. Centenary United Holdings is committed to delivering high-quality services and products, leveraging its extensive expertise and strategic investments to enhance its portfolio and market presence.

How the Company Makes Money

Centenary United Holdings Limited generates revenue through multiple streams. Primarily, the company earns income from its real estate ventures, which include leasing commercial and residential properties. Additionally, its hospitality sector contributes significantly to revenue through hotel operations and management services. Retail partnerships also play a crucial role, with the company earning commissions and profit shares from sales. Strategic alliances with other businesses enhance its market reach and operational efficiency, further boosting its earnings potential. The company also invests in financial instruments, providing a supplementary source of income through dividends and capital gains.

Centenary United Holdings Limited Financial Statement Overview

Summary

The company is experiencing severe financial challenges, with declining revenue, negative net income, and negative cash flow. The high leverage and operational inefficiencies further exacerbate the situation, necessitating urgent strategic interventions.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	731.47M	1.24B	1.62B	2.00B	2.05B	1.91B
Gross Profit	14.20M	16.25M	90.06M	100.44M	118.96M	130.40M
EBITDA	-47.07M	-86.42M	14.63M	-24.25M	7.70M	41.13M
Net Income	-45.37M	-89.73M	-52.36M	-23.63M	2.68M	21.43M
Balance Sheet
Total Assets	438.81M	524.00M	860.99M	896.72M	801.90M	815.05M
Cash, Cash Equivalents and Short-Term Investments	68.73M	79.00M	109.34M	94.13M	69.64M	42.48M
Total Debt	223.76M	276.31M	278.55M	448.33M	253.38M	237.25M
Total Liabilities	354.80M	423.85M	671.52M	654.79M	538.64M	559.16M
Stockholders Equity	84.16M	100.07M	188.96M	240.53M	261.67M	253.79M
Cash Flow
Free Cash Flow	24.04M	131.01M	-7.19M	-71.72M	-17.32M	120.06M
Operating Cash Flow	27.61M	150.77M	52.05M	1.40M	48.83M	145.15M
Investing Cash Flow	3.35M	6.33M	-42.46M	-55.09M	-51.36M	-19.94M
Financing Cash Flow	-33.09M	-138.48M	-31.24M	70.76M	28.10M	-115.18M

Centenary United Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.73
• 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:1959, the sentiment is Positive. The current price of 0.73 is below the 20-day moving average (MA) of 1.07, above the 50-day MA of 0.58, and above the 200-day MA of 0.38, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 73.06 is Negative, neither overbought nor oversold. The STOCH value of 76.01 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
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6909	52 Neutral	HK$295.69M	―	-1.92%	11.58%	-14.32%	-192.28%
0970	51 Neutral	HK$343.31M	―	-56.24%	―	-36.67%	-6.20%
1959	48 Neutral	HK$748.34M	-14.47	-48.30%	―	-41.19%	30.99%
1771	45 Neutral	HK$171.00M	―	-8.81%	―	-24.42%	-115.68%
3836	43 Neutral	HK$1.58B	―	-4.42%	3.43%	11.33%	56.94%

Centenary United Holdings Limited Corporate Events

Centenary United Holdings Announces Private Placing of Shares

Centenary United Holdings Limited, a company listed on the Hong Kong Stock Exchange, announced a private placing of existing shares by its controlling shareholder, Mr. Law Hau Kit, through Chong Kit Limited. The placing agreement involves the sale of up to 76,230,300 shares, representing 15% of the company’s issued share capital, at a price of not less than HK$0.40 each. This move is expected to reduce Mr. Law’s shareholding from approximately 73.58% to 58.58%. The company anticipates no adverse effects on its operations from this transaction.

The most recent analyst rating on (HK:1959) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Centenary United Holdings Limited stock, see the HK:1959 Stock Forecast page.

Centenary United Holdings Limited Reports Mixed Interim Results for H1 2025

Centenary United Holdings Limited reported a significant decrease in revenue by approximately 38.5% to RMB454.2 million for the first half of 2025 compared to the same period in 2024. Despite this, the company saw an increase in gross profit by 61.9% and a reduction in losses, with the loss attributable to owners decreasing from RMB52.4 million to RMB16.0 million, indicating improved operational efficiency.

The most recent analyst rating on (HK:1959) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Centenary United Holdings Limited stock, see the HK:1959 Stock Forecast page.

Centenary United Holdings Limited Announces Auditor Change to Enhance Cost-Effectiveness

Centenary United Holdings Limited has announced a change in its auditing firm, replacing Ernst & Young with Prism Hong Kong Limited, effective from August 27, 2025. The decision was made to reduce audit fees and enhance cost-effectiveness, with the Board and Audit Committee confident that Prism’s appointment will maintain audit quality and benefit shareholders.

The most recent analyst rating on (HK:1959) stock is a Sell with a HK$0.50 price target. To see the full list of analyst forecasts on Centenary United Holdings Limited stock, see the HK:1959 Stock Forecast page.

Centenary United Holdings Expands on Property Leasing Framework

Centenary United Holdings Limited announced additional details regarding its Property Leasing Framework Agreement, which is part of its continuing connected transactions. The agreement involves leasing properties from Zhongshan New Century Pioneering Automobile Co., Ltd. and its subsidiaries to meet the Group’s operational needs. The leases are set on commercial terms favorable to the Group, with rent determined through arm’s length negotiation based on development costs and prevailing market conditions.

Centenary United Holdings to Review Interim Results and Dividend

Centenary United Holdings Limited has announced a board meeting scheduled for August 28, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation for an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Centenary United Holdings Reports Reduced Loss Amid Revenue Decline

Centenary United Holdings Limited announced a significant reduction in its net loss for the first half of 2025, despite a decrease in revenue due to a decline in new car sales and a competitive price war in the automotive market. The company’s improved new car inventory structure, better gross profit margins, and reduced administrative expenses contributed to narrowing the net loss by 69% compared to the same period last year.

Centenary United Holdings Limited Addresses Director’s Involvement in External Winding-Up Order

Centenary United Holdings Limited has announced that Mr. Li Wai Keung, an independent non-executive director of the company, was involved in a separate matter concerning China South City Holdings Limited, which was ordered to be wound up by the High Court of Hong Kong. Mr. Li has confirmed no involvement in the winding-up proceedings, and the board of Centenary United Holdings Limited has stated that this event does not impact the company’s operations or Mr. Li’s role within the company.