Centenary United Holdings Limited (1959) AI Stock Analysis

• Market Cap: HK$1.77B
• Dividend Yield: N/A
• Average Volume (3M): 7.18M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.58
• 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: 530,002,000
• 10 Day Avg. Volume: 4,109,400
• 30 Day Avg. Volume: 7,180,590
• 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: 46 Neutral
• Price Target: HK$3.50 ▲(4.79% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, with declining revenue, profitability, and cash flow. Technical analysis provides a mixed outlook, with some short-term bullish signals but potential overbought conditions. Valuation remains unattractive due to negative earnings and lack of dividends.

Positive Factors

Diversified Revenue Streams

Diversified revenue streams provide resilience against sector-specific downturns, enhancing long-term stability and growth potential.

Strategic Alliances

Strategic alliances can lead to improved market penetration and cost efficiencies, supporting sustainable growth and competitive positioning.

EPS Growth

Positive EPS growth suggests potential for increasing shareholder value and financial health, despite current challenges.

Negative Factors

Declining Revenue

Significant revenue decline indicates potential loss of market share or demand, challenging the company's ability to sustain operations.

Negative Cash Flow

Negative cash flow limits the company's ability to invest in growth opportunities and manage debt, impacting long-term viability.

Rising Debt Levels

Increased leverage poses financial risks, especially in a declining revenue environment, potentially affecting creditworthiness and flexibility.

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 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: 3.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 3.34 is above the 20-day moving average (MA) of 3.03, above the 50-day MA of 2.14, and above the 200-day MA of 0.75, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 63.74 is Neutral, neither overbought nor oversold. The STOCH value of 50.83 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$277.01M	-5.03	-1.92%	12.36%	-14.32%	-192.28%
1959	46 Neutral	HK$1.77B	-28.86	-48.30%	―	-41.19%	30.99%
0970	46 Neutral	HK$309.54M	-1.32	-19.65%	―	-14.26%	84.90%
3836	45 Neutral	HK$1.55B	-6.36	-4.42%	3.49%	11.33%	56.94%
1771	45 Neutral	HK$150.00M	-0.69	-8.81%	―	-24.42%	-115.68%

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.