China Huarong Asset Management Co., Ltd. Class H (2799) AI Stock Analysis

• Market Cap: HK$78.64B
• Dividend Yield: N/A
• Average Volume (3M): 85.15M
• Price to Earnings (P/E): 7.6
• Beta (1Y): 1.55
• Revenue Growth: -16.24%
• EPS Growth: -14.24%
• Country: HK
• Employees: 5,068
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.07
• Shares Outstanding: 35,362,260,000
• 10 Day Avg. Volume: 82,924,077
• 30 Day Avg. Volume: 85,153,802
• PEG Ratio: 0.01
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 4.89
• P/FCF Ratio: 0.51
• 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: 65 Neutral
• Price Target: ―

HK:2799 shows a mixed financial performance with strong cash flow and profitability improvements but inconsistent revenue growth. The technical indicators suggest a positive stock trend, and the valuation metrics indicate potential undervaluation. Overall, the stock presents moderate attractiveness with notable strengths in its financial stability and valuation, although revenue growth remains a key concern.

China Huarong Asset Management Co., Ltd. Class H Business Overview & Revenue Model

Company Description

China Huarong Asset Management Co., Ltd., together with its subsidiaries, provides various financial asset management services. It operates through three segments: Distressed Asset Management Operations, Financial Services Operations, and Asset Management and Investment Operations. The company manages, invests in, and disposes debt-to-equity swap assets; accepts deposits from customers; and offers loans to corporates and individuals. It also provides bankruptcy management, investment, securities dealing assets and project evaluation, clearing and settlement, financial leasing, securities and futures, fund and asset management, trust, real estate and industrial investment, investment banking, and other services; financial bonds issuance, inter-bank borrowing and lending, and commercial financing services for other financial institutions; and investment, legal, and risk management services, as well as consulting and advisory business services on finance. In addition, the company is also involved in asset securitization, financial institutions custody, and closing and liquidation of businesses. It operates 33 branches in 30 provinces, autonomous regions, and municipalities in Mainland China, and Hong Kong and Macau. The company was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

China Huarong Asset Management Co., Ltd. generates revenue through several key streams. The primary source of income is the acquisition and disposal of distressed assets, where the company purchases non-performing loans and other troubled financial instruments at a discount, manages them, and later sells them at a profit. Additionally, the company earns fees from providing financial advisory services and asset management solutions. China Huarong also invests in various sectors, including real estate and finance, generating returns from these investments. The company benefits from its strategic partnerships with banks and financial institutions, which provide a steady flow of distressed assets for management and disposal.

China Huarong Asset Management Co., Ltd. Class H Financial Statement Overview

Summary

Overall, the financial statements indicate a mixed performance. While the company has improved profitability and cash flow metrics, revenue and EBIT have been inconsistent, reflecting potential operational challenges. The balance sheet shows reduced leverage, enhancing financial stability. The company needs to address revenue growth to sustain long-term improvement.

Income Statement

The income statement shows fluctuating revenue with a significant decrease in 2024 compared to 2023. The gross profit margin is stable at 100% due to the nature of the business. The net profit margin improved dramatically in 2024, suggesting better cost control or other positive changes, but revenue growth is negative, highlighting potential instability.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of approximately 5.7% in 2024, up from 5.1% in 2023. The absence of total debt in 2024 is positive, reducing financial risk. Return on Equity (ROE) improved significantly, indicating better profitability relative to equity.

Cash Flow

Cash flow analysis shows strong operating cash flow in 2024, with a substantial increase in free cash flow compared to 2023. The free cash flow to net income ratio is robust, suggesting efficient cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.35B	10.01B	10.41B	-6.26B	65.96B	10.21B
Gross Profit	16.35B	10.01B	10.41B	-30.68B	23.28B	10.21B
EBITDA	0.00	0.00	0.00	-35.90B	3.71B	0.00
Net Income	10.53B	9.62B	1.77B	-27.06B	1.60B	-103.05B
Balance Sheet
Total Assets	1.01T	984.33B	968.10B	955.33B	1.57T	1.64T
Cash, Cash Equivalents and Short-Term Investments	0.00	74.00K	85.00K	122.00K	497.75M	480.75M
Total Debt	440.07B	327.76B	854.51B	831.85B	419.77B	577.81B
Total Liabilities	958.00B	934.56B	920.07B	906.95B	1.46T	1.58T
Stockholders Equity	62.03B	56.50B	49.75B	51.11B	81.72B	43.63B
Cash Flow
Free Cash Flow	58.85B	95.72B	18.85B	-34.12B	94.44B	52.14B
Operating Cash Flow	61.77B	99.13B	19.25B	-33.58B	95.42B	53.43B
Investing Cash Flow	-41.21B	-49.05B	-11.70B	8.58B	43.41B	-2.73B
Financing Cash Flow	-32.17B	-32.82B	-30.92B	-57.85B	-92.35B	-76.76B

China Huarong Asset Management Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.98
• 50DMA: Negative
• 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:2799, the sentiment is Negative. The current price of 0.98 is below the 20-day moving average (MA) of 1.01, below the 50-day MA of 1.08, and above the 200-day MA of 0.92, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 38.41 is Neutral, neither overbought nor oversold. The STOCH value of 39.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2799.

China Huarong Asset Management Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
2799	65 Neutral	HK$78.64B	7.60	17.48%	―	-16.24%	-14.24%
0806	59 Neutral	$4.24B	17.26	6.68%	0.43%	28.57%	342.11%
0245	57 Neutral	€2.05B	2.04	22.46%	―	56.35%	―
1697	55 Neutral	HK$1.82B	12.11	1.22%	―	-31.92%	-10.06%
1359	54 Neutral	$47.32B	27.37	1.61%	2.11%	-15.83%	-32.08%
0165	40 Underperform	$17.37B	―	-0.76%	0.97%	-23.19%	93.53%

China Huarong Asset Management Co., Ltd. Class H Corporate Events

China CITIC Financial Asset Management Announces 2024 AGM Details

China CITIC Financial Asset Management Co., Ltd. has announced its 2024 Annual General Meeting (AGM) to be held on May 28, 2025, in Beijing. The meeting will address several key resolutions including the issuance of additional shares, engagement of accounting firms, approval of financial plans and reports, and election of a new non-executive director. The closure of the H Share Register of members is scheduled from May 23 to May 28, 2025, during which no transfer of shares will be registered.

China CITIC Financial Asset Management Announces Director Nomination and Auditor Change

China CITIC Financial Asset Management Co., Ltd. announced the nomination of Ms. Yuan Xin as a non-executive director, pending shareholder and regulatory approval. Additionally, the company plans to change its auditors from Ernst & Young to BDO China Shu Lun Pan Certified Public Accountants LLP and BDO Limited, following a five-year engagement limit for state-owned financial enterprises.

China CITIC Financial AMC Releases 2024 Annual Results

China CITIC Financial Asset Management Co., Ltd. has announced its audited annual results for the year ending December 31, 2024. The announcement complies with the Hong Kong Stock Exchange’s requirements for preliminary annual results. The 2024 Annual Report will be available in printed form for H Shareholders and online in April 2025. This announcement could impact the company’s operations by providing transparency and potentially influencing investor confidence and market positioning.

China CITIC Announces Leadership Changes

China CITIC Financial Asset Management Co., Ltd. has announced the approval of Mr. Yang Yi as the vice president by the National Financial Regulatory Administration, effective from March 27, 2025. This appointment is expected to strengthen the company’s leadership team. Additionally, Mr. Zhu Ning has resigned as an independent non-executive director after serving for six years, in compliance with corporate governance guidelines. His resignation will take effect once a new director is elected, ensuring continuity in board operations.

China CITIC Financial Asset Management to Review Annual Results

China CITIC Financial Asset Management Co., Ltd. has announced that its board of directors will hold a meeting on March 28, 2025, to review and approve the company’s annual results for the year ending December 31, 2024. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder confidence.

China CITIC Financial Asset Management’s Leadership Update

China CITIC Financial Asset Management Co., Ltd. has announced the approval of Mr. Chen Pengjun’s qualification as vice president by the National Financial Regulatory Administration. This approval marks a significant step in the company’s leadership structure, with Mr. Chen’s term set to begin in February 2025, potentially impacting the company’s operational direction and governance.

China CITIC Financial Announces Vice President Resignation

China CITIC Financial Asset Management Co., Ltd., a company incorporated in China, announced the resignation of its Vice President, Mr. Xu Jiongwei, effective February 14, 2025, due to work changes. Mr. Xu has no disagreements with the board, and the company appreciates his contributions during his tenure.