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Renheng Enterprise Holdings Limited (HK:3628)
:3628
Hong Kong Market
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Renheng Enterprise Holdings Limited (3628) AI Stock Analysis

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HK:3628

Renheng Enterprise Holdings Limited

(3628)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
HK$0.23
▲(16.50% Upside)
Action:Reiterated
Date:05/03/26
The score is driven primarily by a conservative, low-debt balance sheet and improved profitability, partially offset by weak and volatile cash-flow conversion. Technical signals are largely neutral, while the high P/E meaningfully pressures the overall score.
Positive Factors
Very conservative balance sheet and minimal leverage
Extremely low leverage and a growing equity base materially reduce solvency and refinancing risk. This durable capital structure provides flexibility to invest, absorb cyclical downturns, and pursue strategic initiatives without needing external debt, supporting long-term stability.
Negative Factors
Top-line pressure with declining revenue
Sustained or recurring revenue declines point to market share pressure or weak demand; margins gains may be harder to sustain if volumes continue to fall. Persistent top-line weakness reduces scalability of fixed-cost advantages and limits long-term growth prospects.
Read all positive and negative factors
Positive Factors
Negative Factors
Very conservative balance sheet and minimal leverage
Extremely low leverage and a growing equity base materially reduce solvency and refinancing risk. This durable capital structure provides flexibility to invest, absorb cyclical downturns, and pursue strategic initiatives without needing external debt, supporting long-term stability.
Read all positive factors

Renheng Enterprise Holdings Limited (3628) vs. iShares MSCI Hong Kong ETF (EWH)

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 sy...

Renheng Enterprise Holdings Limited Financial Statement Overview

Summary
Strong balance sheet with minimal leverage and improved ROE supports a solid financial profile. Profitability rebounded on sharp margin expansion, but revenue declined and cash flow is volatile with a meaningful 2025 drop in operating/free cash flow versus prior year.
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
55
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue107.42M114.90M124.42M69.08M73.73M
Gross Profit51.42M38.53M45.72M25.57M28.28M
EBITDA14.02M12.38M17.11M-1.18M-688.00K
Net Income13.96M7.04M13.56M-2.36M721.00K
Balance Sheet
Total Assets298.01M245.47M235.52M258.45M268.00M
Cash, Cash Equivalents and Short-Term Investments123.54M96.63M86.10M97.19M96.04M
Total Debt205.00K0.00212.00K0.00300.00K
Total Liabilities153.19M117.46M112.13M147.13M144.80M
Stockholders Equity144.82M128.01M123.39M111.32M123.20M
Cash Flow
Free Cash Flow4.58M19.81M-3.90M-7.88M10.13M
Operating Cash Flow4.76M19.98M-3.32M-7.21M10.64M
Investing Cash Flow20.62M-44.94M-6.63M16.22M-10.19M
Financing Cash Flow-126.00K-264.00K-264.00K-310.00K-4.61M

Renheng Enterprise Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
HK$655.00M5.528.25%3.34%14.08%50.31%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
HK$275.20M9.794.60%3.13%-64.43%-31.94%
62
Neutral
HK$175.27M11.529.70%-6.51%97.73%
56
Neutral
HK$139.08M37.79-14.84%19.32%-100.00%
51
Neutral
HK$414.18M-7.39-8.85%9.63%-18.25%
49
Neutral
HK$446.92M-3.78-6.58%-19.21%-268.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3628
Renheng Enterprise Holdings Limited
0.22
0.10
81.67%
HK:1289
Wuxi Sunlit Science & Technology Co., Ltd. Class H
2.15
0.41
23.56%
HK:1536
Yuk Wing Group Holdings Ltd.
0.31
0.21
231.52%
HK:1673
Huazhang Technology Holding Ltd.
0.28
0.05
21.74%
HK:3302
Kinergy Corporation Ltd.
0.45
0.34
309.09%
HK:3348
China PengFei Group Limited
1.31
0.27
25.96%

Renheng Enterprise Holdings Limited Corporate Events

Renheng Enterprise Sets 2026 AGM to Approve Accounts and Share Issuance Mandate
Apr 28, 2026
Renheng Enterprise Holdings Limited has called its annual general meeting for 25 June 2026 in Hong Kong, where shareholders will review the audited financial statements for the year ended 31 December 2025, consider the re-election of one executive...
Renheng Enterprise Boosts Profit and Margins Despite Revenue Decline in 2025
Mar 30, 2026
Renheng Enterprise Holdings Limited reported revenue of HK$107.4 million for the year ended 31 December 2025, down 6.5% year on year, but significantly improved its gross profit margin to 47.9% from 33.5%. Profit attributable to shareholders more ...
Renheng moves to adopt new articles for hybrid meetings and paperless regime
Mar 30, 2026
Renheng Enterprise Holdings Limited plans to modernise its constitutional framework by replacing its existing articles of association with a new set that accommodates hybrid and fully electronic general meetings, electronic voting and electronic d...
Renheng flags sharp profit rise on stronger margins and pneumatic system sales
Mar 9, 2026
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. M...
Renheng Enterprise Sets March Board Meeting to Approve 2025 Annual Results
Mar 9, 2026
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 c...
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: May 03, 2026