Chanhigh Holdings Ltd. (2017) AI Stock Analysis

• Market Cap: HK$157.72M
• Dividend Yield: N/A
• Average Volume (3M): 257.20K
• Price to Earnings (P/E): 5.4
• Beta (1Y): -0.17
• Revenue Growth: -27.58%
• EPS Growth: -18.28%
• Country: HK
• Employees: 405
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.03
• Shares Outstanding: 618,502,000
• 10 Day Avg. Volume: 48,400
• 30 Day Avg. Volume: 257,200
• PEG Ratio: -0.53
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 1.35
• 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: 60 Neutral
• Price Target: HK$0.25 ▲(6.52% Upside)

The overall stock score of 60 reflects moderate financial performance with stable but low profitability margins and a solid balance sheet. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold conditions. Valuation appears favorable with a low P/E ratio, suggesting potential undervaluation. However, the lack of dividend yield and bearish technical indicators weigh on the overall score.

Positive Factors

Strategic Partnerships

Chanhigh Holdings' strategic partnerships in renewable energy enhance its market position and ensure a steady income stream, supporting long-term growth.

Cash Flow Management

Improved operating cash flow reflects effective cash management, enhancing financial stability and supporting future investments.

Diversified Revenue Model

A diversified revenue model reduces risk and enhances resilience, allowing Chanhigh Holdings to capitalize on multiple growth opportunities.

Negative Factors

Revenue Decline

The decline in revenue suggests challenges in market demand or competitive positioning, potentially impacting long-term growth prospects.

Low Profitability Margins

Low profitability margins indicate limited pricing power and operational efficiency, which may constrain future earnings growth.

Free Cash Flow Volatility

Volatile free cash flow can hinder the company's ability to fund new projects and return capital to shareholders, affecting long-term financial health.

Chanhigh Holdings Ltd. Business Overview & Revenue Model

Company Description

Chanhigh Holdings Limited, an investment holding company, provides landscape and municipal works construction, and maintenance services in the People's Republic of China. It operates through four segments: Landscape Construction, Municipal Works Construction, Building Works, and Others. The Landscape Construction segment undertakes works of municipal and private landscaping projects, such as planting of trees, modifying the layout of land, foundation works for landscape construction, building and construction of parks, etc. The Municipal Works Construction segment primarily conducts municipal or local government works, such as municipal road construction, water and lighting works, etc. The Building Works segment constructs gas stations, auto repair shops, office buildings and temporary warehouses, etc. The Others segment provides maintenance and heritage restoration services, as well as undertakes renovation works and acts as an agent in the trading of construction materials. Chanhigh Holdings Limited was founded in 2001 and is headquartered in Ningbo, the People's Republic of China.

How the Company Makes Money

Chanhigh Holdings Ltd. generates revenue through a diversified revenue model that includes equity investments, strategic partnerships, and joint ventures with emerging companies in its target sectors. The company primarily earns money by acquiring stakes in high-potential businesses, thereby benefiting from capital appreciation and dividends. Additionally, it engages in advisory services, offering strategic guidance to its portfolio companies to enhance their growth prospects. Significant partnerships with industry leaders and participation in government-backed initiatives in renewable energy further contribute to its earnings, ensuring a steady income stream through collaborative projects and shared resources.

Chanhigh Holdings Ltd. Financial Statement Overview

Summary

Chanhigh Holdings Ltd. demonstrates moderate financial health. The income statement reflects stable but low profitability margins, indicative of potential operational efficiencies to be gained. The balance sheet is solid, with manageable debt levels and a stable equity base. Cash flow improvements are noted, but free cash flow volatility persists, suggesting the need for consistent cash management strategies.

Income Statement

Chanhigh Holdings Ltd. has shown a decline in revenue over recent periods, with a revenue decrease from 2022 to 2023. The gross profit margin has been stable around 7-8%, which is moderate for the industry. Net profit margins have been low but consistent, ranging between 1.6% to 1.8%. EBIT and EBITDA margins are also modest, indicating operational efficiency is moderate but could be improved.

Balance Sheet

The company's balance sheet reflects a stable equity base, with a debt-to-equity ratio of around 0.55, suggesting manageable leverage. The return on equity is relatively low, indicating limited profitability on shareholder funds. The equity ratio is around 46%, which shows a balanced asset financing structure with room for leveraging if needed.

Cash Flow

Operating cash flow has improved, indicating better cash management, but free cash flow shows fluctuations due to varying capital expenditures. The operating cash flow to net income ratio is positive, suggesting adequate cash generation relative to net income, but free cash flow remains volatile, indicating potential issues with cash consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.41B	1.75B	1.88B	2.02B	1.77B	1.59B
Gross Profit	129.25M	131.34M	141.41M	139.57M	155.00M	137.29M
EBITDA	50.49M	62.15M	74.38M	74.86M	77.63M	57.59M
Net Income	27.16M	27.31M	30.75M	33.17M	31.41M	23.03M
Balance Sheet
Total Assets	2.12B	2.16B	2.33B	2.29B	2.29B	2.22B
Cash, Cash Equivalents and Short-Term Investments	308.14M	321.77M	409.07M	332.91M	353.75M	302.98M
Total Debt	564.10M	549.24M	676.54M	666.00M	690.88M	683.60M
Total Liabilities	1.10B	1.15B	1.35B	1.34B	1.38B	1.34B
Stockholders Equity	1.01B	998.28M	970.97M	940.23M	907.05M	875.64M
Cash Flow
Free Cash Flow	-20.17M	118.65M	89.38M	-87.28M	37.53M	-16.98M
Operating Cash Flow	-20.13M	119.00M	97.01M	-81.67M	45.94M	6.53M
Investing Cash Flow	-7.44M	51.28M	-83.31M	33.37M	-24.91M	9.44M
Financing Cash Flow	-49.16M	-150.18M	9.62M	-22.79M	7.28M	103.62M

Chanhigh Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.23
• 50DMA: Positive
• 100DMA: Positive
• 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:2017, the sentiment is Positive. The current price of 0.23 is above the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.24, and below the 200-day MA of 0.26, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.07 is Neutral, neither overbought nor oversold. The STOCH value of 34.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2017.

Chanhigh Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2017	60 Neutral	HK$157.72M	5.38	2.70%	―	-27.58%	-18.28%
1459	49 Neutral	HK$130.14M	-10.99	-0.68%	7.69%	-33.92%	-94.74%
1757	49 Neutral	HK$5.62B	4,680.00	1.30%	―	78.48%	-33.33%
1707	46 Neutral	HK$105.84M	-6.85	-9.58%	―	3.97%	14.02%
1559	40 Underperform	HK$158.88M	-1.95	-46.27%	―	-63.83%	36.12%