Renheng Enterprise Holdings Limited (3628) AI Stock Analysis

• Market Cap: HK$160.00M
• 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

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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$330.24M	2.53	5.56%	3.13%	20.69%	-24.85%
3628	67 Neutral	HK$160.00M	1.85	9.26%	―	―	―
3348	66 Neutral	HK$595.00M	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$113.09M	37.78	-14.84%	―	19.32%	-100.00%
3302	51 Neutral	HK$363.56M	-1.19	-11.33%	―	-0.51%	-922.95%
1673	39 Underperform	HK$478.84M	-3.85	-6.58%	―	-4.33%	55.43%

Renheng Enterprise Holdings Limited Corporate Events

Renheng flags sharp profit rise on stronger margins and pneumatic system sales

Renheng Enterprise Holdings has issued a positive profit alert, indicating that unaudited profit before tax for the year ended 31 December 2025 is expected to rise to between HK$15 million and HK$18 million, up from HK$10 million a year earlier. Management attributes the improvement mainly to higher gross profit margins on non-standard customized equipment, helped by more favorable quotation strategies and bid structures.

The company also reported strong growth in its pneumatic feeding system business, whose share of total sales surged to at least about 17% in 2025 from 3% in 2024, signaling a meaningful shift in its revenue mix toward this product line. The board cautioned that the figures are based on unaudited management accounts and that final results, due by the end of March 2026, may differ, advising shareholders and potential investors to exercise care when trading the shares.

The most recent analyst rating on (HK:3628) stock is a Hold with a HK$0.21 price target. To see the full list of analyst forecasts on Renheng Enterprise Holdings Limited stock, see the HK:3628 Stock Forecast page.

Renheng Enterprise Sets March Board Meeting to Approve 2025 Annual Results

Renheng Enterprise Holdings Limited, a Cayman Islands-incorporated company listed in Hong Kong, is governed by a board comprising executive and independent non-executive directors. The board is chaired by Chief Executive Officer Liu Li, with its composition designed to balance management representation and independent oversight in line with market expectations for listed companies.

The company has scheduled a board meeting for 30 March 2026 to approve its annual results for the year ended 31 December 2025 and to consider recommending a final dividend. The timing signals that audited financials and potential shareholder returns will soon be disclosed, events that may influence investor sentiment and provide insight into the group’s recent operational and financial performance.

The meeting will also address other board business, underscoring the regular governance cycle typical for Hong Kong-listed firms ahead of annual reporting. For stakeholders, the announcement marks the start of the company’s formal year-end reporting process, which will clarify profitability, capital allocation decisions and any proposed distribution of earnings to shareholders.

The most recent analyst rating on (HK:3628) stock is a Hold with a HK$0.21 price target. To see the full list of analyst forecasts on Renheng Enterprise Holdings Limited stock, see the HK:3628 Stock Forecast page.

Renheng Enterprise Announces Resignation of Executive Director Wen Yuan

Renheng Enterprise Holdings Limited has announced a board change, with executive director Wen Yuan stepping down effective 20 February 2026 to concentrate on other business commitments. The company emphasized that Wen has no disagreements with the board and that no issues need to be brought to shareholders’ attention, while expressing gratitude for his contributions and confirming the remaining board composition.

The orderly transition signals continuity in the company’s governance and minimizes concerns over potential internal conflict or strategic disruption. Investors and other stakeholders are likely to view the resignation as a routine leadership adjustment, given the absence of cited disputes and the clear affirmation of stable management under Chairman and CEO Liu Li.

The most recent analyst rating on (HK:3628) stock is a Hold with a HK$0.21 price target. To see the full list of analyst forecasts on Renheng Enterprise Holdings Limited stock, see the HK:3628 Stock Forecast page.

Renheng Enterprise Details Board and Committee Structure

Renheng Enterprise Holdings Limited has announced the current composition of its board, naming Liu Li as chairman and chief executive officer alongside fellow executive director Lew Lai Kuen, with three independent non-executive directors providing oversight. The company has also detailed the membership and chairmanship of its audit, nomination and remuneration committees, underscoring its governance framework and role segregation in line with Hong Kong listing requirements.

Independent non-executive director Dr. Lam, Lee G. chairs the audit committee, while Mr. Cheung Kwong Tat leads the nomination committee and Mr. Lam Chi Wing heads the remuneration committee, each also serving as committee members where applicable. The clarified allocation of committee responsibilities signals the company’s emphasis on audit integrity, board appointment processes and remuneration oversight, offering greater transparency to shareholders and other stakeholders about its governance arrangements.

The most recent analyst rating on (HK:3628) stock is a Hold with a HK$0.21 price target. To see the full list of analyst forecasts on Renheng Enterprise Holdings Limited stock, see the HK:3628 Stock Forecast page.