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China Huarong Asset Management Co., Ltd. Class H (HK:2799)
:2799

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

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HK:2799

China Huarong Asset Management Co., Ltd. Class H

(2799)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
HK$0.84
▼(-0.94% Downside)
The score is primarily constrained by high leverage and historically volatile earnings quality despite a strong 2024 rebound. Weak technicals (price below key averages with negative MACD and oversold momentum) further weigh on the outlook, while the low P/E offers some valuation support.
Positive Factors
Cash Generation
Strong cash generation in 2024 indicates robust operational efficiency, providing the company with liquidity to manage debt and invest in growth.
Profitability Rebound
The significant rebound in profitability in 2024 suggests improved operational execution and potential for sustained earnings if volatility is managed.
Leadership Strengthening
Enhancing risk management capabilities through leadership changes can improve strategic oversight and operational resilience.
Negative Factors
High Leverage
High leverage poses a risk to financial stability, limiting the company's ability to withstand economic downturns and increasing sensitivity to interest rate changes.
Earnings Volatility
Volatile earnings history undermines confidence in consistent performance, making it challenging to predict future profitability and plan long-term strategies.
Revenue Decline
A decline in revenue growth indicates potential challenges in core business operations, affecting long-term growth prospects and market competitiveness.

China Huarong Asset Management Co., Ltd. Class H (2799) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionChina 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 MoneyChina 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
46
Neutral
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
28
Negative
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
62
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.35B10.01B10.41B-6.26B65.96B10.21B
Gross Profit16.35B10.01B10.41B-30.68B23.28B10.21B
EBITDA0.000.000.00-35.90B3.71B0.00
Net Income10.53B9.62B1.77B-27.06B1.60B-103.05B
Balance Sheet
Total Assets1.01T984.33B968.10B955.33B1.57T1.64T
Cash, Cash Equivalents and Short-Term Investments0.0074.00K85.00K122.00K497.75M480.75M
Total Debt440.07B327.76B854.51B831.85B419.77B577.81B
Total Liabilities958.00B934.56B920.07B906.95B1.46T1.58T
Stockholders Equity62.03B56.50B49.75B51.11B81.72B43.63B
Cash Flow
Free Cash Flow58.85B95.72B18.85B-34.12B94.44B52.14B
Operating Cash Flow61.77B99.13B19.25B-33.58B95.42B53.43B
Investing Cash Flow-41.21B-49.05B-11.70B8.58B43.41B-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 Price0.85
Price Trends
50DMA
0.95
Negative
100DMA
1.00
Negative
200DMA
1.00
Negative
Market Momentum
MACD
-0.02
Negative
RSI
41.67
Neutral
STOCH
34.72
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 0.85 is below the 20-day moving average (MA) of 0.86, below the 50-day MA of 0.95, and below the 200-day MA of 1.00, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of 34.72 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
58
Neutral
HK$4.69B19.126.68%0.44%28.57%342.11%
56
Neutral
HK$1.99B1.9822.46%56.35%
55
Neutral
HK$1.68B11.181.22%-31.46%-10.06%
50
Neutral
HK$48.09B27.811.61%1.92%-15.83%-32.08%
48
Neutral
HK$69.01B6.6717.48%-16.24%-14.24%
47
Neutral
HK$17.66B-77.57-0.76%1.07%-23.19%93.53%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2799
China Huarong Asset Management Co., Ltd. Class H
0.86
0.18
26.47%
HK:1359
China Cinda Asset Management Co
1.26
0.09
8.06%
HK:0165
China Everbright
10.48
5.68
118.42%
HK:0806
Value Partners Group
2.57
1.14
79.85%
HK:0245
China Vered Financial Holding Corporation Limited
1.07
0.25
30.49%
HK:1697
Shandong International Trust Corp. Class H
0.36
0.00
0.00%

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

China CITIC Financial Asset Management Gains Regulatory Approval for New Vice President
Jan 5, 2026

China CITIC Financial Asset Management Co., Ltd., a Chinese financial asset management company listed in Hong Kong, operates in the financial services sector with a diversified board of executive, non-executive and independent non-executive directors overseeing its governance. The company announced that China’s National Financial Regulatory Administration has approved the qualification of Zhang Jian as vice president, with his term effective from 31 December 2025 until any change made by the board, reinforcing the firm’s senior leadership team and signaling regulatory confidence in its management structure.

The most recent analyst rating on (HK:2799) stock is a Hold with a HK$0.84 price target. To see the full list of analyst forecasts on China Huarong Asset Management Co., Ltd. Class H stock, see the HK:2799 Stock Forecast page.

China CITIC Financial Asset Management Wins Regulatory Nod for Governance Overhaul, Dissolves Board of Supervisors
Dec 31, 2025

China CITIC Financial Asset Management Co., Ltd. has obtained approval from the National Financial Regulatory Administration for amendments to its Articles of Association, triggering the formal dissolution of its Board of Supervisors and the simultaneous implementation of updated terms of reference for its Audit Committee and Nomination and Remuneration Committee. With the governance changes now effective, the company has abolished documents related to the former supervisory board, confirmed the cessation of duties of four supervisors, and emphasized that there are no outstanding disputes or issues requiring shareholder or creditor attention, signaling a shift toward a board committee–centric corporate governance structure that aligns with evolving regulatory expectations.

The most recent analyst rating on (HK:2799) stock is a Hold with a HK$0.84 price target. To see the full list of analyst forecasts on China Huarong Asset Management Co., Ltd. Class H stock, see the HK:2799 Stock Forecast page.

China CITIC Financial Asset Management Updates Audit Committee Terms of Reference
Dec 31, 2025

China CITIC Financial Asset Management Co., Ltd., a PRC-incorporated joint stock financial asset manager listed in Hong Kong, focuses on managing financial and distressed assets within China’s broader financial services industry. The company has issued updated terms of reference for its board Audit Committee, setting out detailed provisions on its composition, duties and authorities, work procedures, procedural rules, and mechanisms for coordination and communication, a move that formalises and strengthens its governance and oversight framework in areas such as financial reporting and internal control, with implications for improved transparency and risk management for regulators, investors and other stakeholders.

The most recent analyst rating on (HK:2799) stock is a Hold with a HK$0.84 price target. To see the full list of analyst forecasts on China Huarong Asset Management Co., Ltd. Class H stock, see the HK:2799 Stock Forecast page.

China CITIC Financial Asset Management Defines Roles of Board Nomination and Remuneration Committee
Dec 31, 2025

China CITIC Financial Asset Management Co., Ltd. has formally set out the terms of reference for its Board’s Nomination and Remuneration Committee, detailing its composition, powers, working procedures, coordination mechanisms and supplementary provisions. The move standardizes the governance framework for director nomination and remuneration decisions, aiming to strengthen board oversight, clarify responsibilities, and enhance transparency and regulatory compliance in the company’s corporate governance structure, with implications for how senior leadership is selected, evaluated and compensated.

The most recent analyst rating on (HK:2799) stock is a Hold with a HK$0.84 price target. To see the full list of analyst forecasts on China Huarong Asset Management Co., Ltd. Class H stock, see the HK:2799 Stock Forecast page.

China CITIC Financial Asset Management Sets Out Updated Nomination and Remuneration Committee Mandate
Dec 31, 2025

China CITIC Financial Asset Management Co., Ltd. has issued updated terms of reference for its Board’s Nomination and Remuneration Committee, outlining its composition, responsibilities and working procedures. The document formalizes the committee’s role in director nomination, remuneration oversight and internal coordination, signaling a continued emphasis on corporate governance structure and clarity in board-level processes for shareholders and other stakeholders.

The most recent analyst rating on (HK:2799) stock is a Hold with a HK$0.84 price target. To see the full list of analyst forecasts on China Huarong Asset Management Co., Ltd. Class H stock, see the HK:2799 Stock Forecast page.

China CITIC Financial Asset Management Gains Regulatory Nod for New Vice President
Dec 31, 2025

China CITIC Financial Asset Management has announced that China’s National Financial Regulatory Administration has approved the qualification of Liu Zeyun as the company’s vice president, following an earlier board decision to appoint him. Liu’s term becomes effective from 29 December 2025 and will continue until any change or dismissal by the board, underscoring a completed regulatory step in strengthening the firm’s senior management ranks and signaling continuity in corporate governance for investors and other stakeholders.

The most recent analyst rating on (HK:2799) stock is a Hold with a HK$0.84 price target. To see the full list of analyst forecasts on China Huarong Asset Management Co., Ltd. Class H stock, see the HK:2799 Stock Forecast page.

China CITIC Financial Asset Management Approves Key Resolutions at Extraordinary General Meeting
Nov 27, 2025

China CITIC Financial Asset Management Co., Ltd. held its second extraordinary general meeting of shareholders for 2025, where several key resolutions were approved. These included amendments to the Articles of Association, the dissolution of the Board of Supervisors, and the appointment of Mr. XIANG Xianchun as a non-executive director. The meeting was conducted in compliance with relevant laws and regulations, with a significant majority of shareholders participating in the voting process.

China CITIC Financial Asset Management Announces Leadership Changes
Nov 19, 2025

China CITIC Financial Asset Management Co., Ltd. has announced the appointment of Mr. LIU Zeyun and Mr. ZHANG Jian as vice presidents, effective immediately following approval by the National Financial Regulatory Administration. This strategic move is expected to strengthen the company’s leadership team. Additionally, Mr. YUAN Caiping has resigned from his position as assistant to the president due to retirement, with the company expressing gratitude for his contributions.

China CITIC Financial Asset Management Appoints New Chief Risk Officer
Nov 11, 2025

China CITIC Financial Asset Management Co., Ltd. has announced the approval of Mr. Liu Zeyun as the new Chief Risk Officer by the National Financial Regulatory Administration. This appointment is expected to enhance the company’s risk management capabilities, potentially strengthening its position in the financial asset management sector.

China CITIC Financial Asset Management Announces Key Governance Changes at Upcoming EGM
Nov 7, 2025

China CITIC Financial Asset Management Co., Ltd. has announced an extraordinary general meeting (EGM) scheduled for November 27, 2025, in Beijing. The meeting will address several resolutions, including amendments to the Articles of Association and the Rules of Procedures for both the Shareholders’ General Meeting and the Board of Directors. Additionally, the dissolution of the Board of Supervisors and the election of a non-executive director will be considered. This meeting is significant for stakeholders as it involves key governance changes that could impact the company’s strategic direction and operational framework.

China CITIC Financial Asset Management Announces Director Nomination and Governance Amendments
Nov 7, 2025

China CITIC Financial Asset Management Co., Ltd. has announced the nomination of Mr. Xiang Xianchun as a non-executive director, subject to approval by the shareholders’ general meeting and the National Financial Regulatory Administration. The company also proposed amendments to its Articles of Association and governance procedures to enhance corporate governance, including changes to the corporate governance structure and performance requirements for directors and senior management.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025