Renheng Enterprise Holdings Limited (3628) AI Stock Analysis

• Market Cap: HK$160.80M
• Dividend Yield: N/A
• Average Volume (3M): 115.73K
• Price to Earnings (P/E): 1.8
• Beta (1Y): 0.50
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 132
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.02
• Shares Outstanding: 804,000,000
• 10 Day Avg. Volume: 92,800
• 30 Day Avg. Volume: 115,733
• PEG Ratio: -0.29
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 4.87
• 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: 67 Neutral
• Price Target: HK$0.22 ▲(8.50% Upside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is driven primarily by strong financial stability (zero debt) and improved 2024 cash flow, offset by weaker 2024 operating performance (declining revenue and margin compression). Technicals are neutral-to-slightly bearish, while valuation looks reasonable based on the provided P/E.

Renheng Enterprise Holdings Limited Business Overview & Revenue Model

Company Description

RENHENG Enterprise Holdings Limited, an investment holding company, manufactures and sells tobacco machinery products in the People's Republic of China. The company offers special-purpose tobacco machinery products, such as casing and flavoring systems, pneumatic feeding systems, and pre-pressing packing machines. The company was incorporated in 2011 and is headquartered in Admiralty, Hong Kong.

How the Company Makes Money

Renheng Enterprise Holdings Limited Financial Statement Overview

Summary

Balance sheet strength is a major positive (essentially zero debt and solid equity), lowering financial risk. Profitability remains positive with healthy gross margins, but 2024 saw weaker results (revenue down ~10%, earnings down and net margin compressed to ~6% from ~11%). Cash flow rebounded strongly in 2024 with good earnings quality, though prior-year volatility keeps this from scoring higher.

Income Statement

Profitability has improved versus earlier loss-making years, with 2024 remaining solidly profitable (about 6% net margin) and healthy gross margins in the mid-30% range. However, the trajectory weakened in 2024: revenue declined ~10% and earnings fell notably versus 2023, with margins compressing (net margin down from ~11% to ~6%). Overall, the business shows decent underlying margins but inconsistent growth and earnings volatility.

Balance Sheet

The balance sheet is a clear strength: debt is essentially zero across the period (including 2024 at zero), resulting in negligible leverage and strong financial flexibility. Equity is sizable and has been maintained, supporting a conservative risk profile. The main weakness is return on equity trending lower (roughly ~11% in 2023 down to ~5.5% in 2024), indicating the company is currently generating more modest profits relative to its equity base.

Cash Flow

Cash generation is mixed but improved materially in 2024, with operating cash flow and free cash flow both strongly positive and free cash flow roughly matching net income (good earnings quality). That said, cash flow has been volatile historically, including negative operating and free cash flow in 2022–2023, which raises questions about working-capital swings and consistency. Overall, 2024 is a strong rebound, but the track record is uneven.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	114.56M	114.90M	124.42M	69.08M	73.73M	76.28M
Gross Profit	45.31M	38.53M	45.72M	25.57M	28.28M	29.84M
EBITDA	16.24M	12.38M	17.11M	-1.18M	-688.00K	4.33M
Net Income	12.54M	7.04M	13.56M	-2.36M	721.00K	-783.00K
Balance Sheet
Total Assets	258.51M	245.47M	235.52M	258.45M	268.00M	218.93M
Cash, Cash Equivalents and Short-Term Investments	96.22M	96.63M	86.10M	97.19M	96.04M	97.42M
Total Debt	275.00K	0.00	212.00K	0.00	300.00K	34.00K
Total Liabilities	115.69M	117.46M	112.13M	147.13M	144.80M	99.47M
Stockholders Equity	142.83M	128.01M	123.39M	111.32M	123.20M	119.46M
Cash Flow
Free Cash Flow	10.59M	19.81M	-3.90M	-7.88M	10.13M	22.18M
Operating Cash Flow	10.71M	19.98M	-3.32M	-7.21M	10.64M	23.70M
Investing Cash Flow	-44.33M	-44.94M	-6.63M	16.22M	-10.19M	-974.00K
Financing Cash Flow	-211.00K	-264.00K	-264.00K	-310.00K	-4.61M	-378.00K

Renheng Enterprise Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1289	76 Outperform	HK$309.76M	2.53	5.59%	3.13%	20.69%	-24.85%
3628	67 Neutral	HK$160.80M	1.85	9.19%	―	―	―
3348	66 Neutral	HK$590.00M	2.77	8.36%	3.34%	-21.28%	-29.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1536	53 Neutral	HK$98.04M	37.78	-14.84%	―	19.32%	-100.00%
3302	51 Neutral	HK$303.73M	-1.19	-10.85%	―	-0.51%	-922.95%
1673	39 Underperform	HK$478.84M	-3.85	-2.71%	―	-4.33%	55.43%

Renheng Enterprise Holdings Limited Corporate Events

Renheng Enterprise Holdings Announces Board Changes

Renheng Enterprise Holdings Limited has announced a change in its board composition, effective October 31, 2025. Mr. Wu Wei has resigned as an independent non-executive director and chairman of the Nomination Committee due to other business commitments, and Mr. Cheung Kwong Tat has been appointed to these roles. Mr. Cheung brings extensive experience in corporate governance and the Hong Kong IPO market, which may enhance the company’s strategic direction and stakeholder confidence.

Renheng Enterprise Holdings Announces Board Composition and Committee Roles

Renheng Enterprise Holdings Limited has announced the composition of its board of directors and their respective roles within the company. The board consists of executive directors and independent non-executive directors, with Ms. Liu Li serving as the Chairman and CEO. The announcement also details the membership of the company’s three committees: Audit, Nomination, and Remuneration, highlighting the roles of Dr. Lam, Lee G., Mr. Lam Chi Wing, and Mr. Cheung Kwong Tat within these committees.