China Supply Chain Holdings Limited (3708) AI Stock Analysis

• Market Cap: HK$127.54M
• Dividend Yield: N/A
• Average Volume (3M): 34.23M
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.92
• Revenue Growth: 13.27%
• EPS Growth: -157.14%
• Country: HK
• Employees: 150
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 6,712,800,000
• 10 Day Avg. Volume: 35,986,000
• 30 Day Avg. Volume: 34,225,333
• PEG Ratio: -0.07
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 29.28
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The company demonstrates solid financial performance with improved profitability and a strong balance sheet, contributing significantly to the score. Technical analysis presents a mixed picture with potential bearish trends, impacting the score negatively. The valuation appears attractive with a low P/E ratio, indicating potential value, despite the absence of a dividend yield. Overall, the stock is positioned reasonably well, but challenges in cash flow generation and technical indicators suggest caution.

China Supply Chain Holdings Limited Business Overview & Revenue Model

Company Description

China Supply Chain Holdings Limited, an investment holding company, provides building maintenance and renovation services in Hong Kong. The company also offers administrative services. The company was formerly known as Yat Sing Holdings Limited and changed its name to China Supply Chain Holdings Limited in July 2020. The company was incorporated in 2014 and is headquartered in Hong Kong, Hong Kong. China Supply Chain Holdings Limited operates as a subsidiary of Smart Paradise International Limited.

How the Company Makes Money

China Supply Chain Holdings Limited makes money through a combination of service fees and commissions associated with its supply chain management and logistics services. The company generates revenue by offering procurement services, where it sources products for its clients, often leveraging its established relationships with manufacturers and suppliers. Additionally, it provides distribution and logistics services, for which it charges fees based on the volume and complexity of the logistics operations. The company's earnings are significantly supported by its strategic partnerships with key players in the consumer electronics and home appliances sectors, enabling it to secure competitive pricing and favorable terms. Furthermore, the company may also earn from value-added services such as warehousing and inventory management, which help clients streamline their operations and reduce costs.

China Supply Chain Holdings Limited Financial Statement Overview

Summary

China Supply Chain Holdings Limited shows positive financial momentum with improved profitability and a strong balance sheet. Revenue growth and margin improvements highlight effective cost control and operational efficiency. However, the decline in operating cash flow indicates challenges in cash generation, though free cash flow remains strong.

Income Statement

The company has shown a strong improvement in profitability with a positive net income of $3.86 million compared to a loss in the previous year. The gross profit margin improved to 6.33% from 5.49%, indicating better cost management. Revenue growth was 8.75%, showing good top-line momentum but slightly underperforming the industry average. EBIT and EBITDA margins turned positive, reflecting enhanced operational efficiency.

Balance Sheet

The balance sheet is relatively strong with an equity ratio of 57.12%, indicating a solid equity base. The debt-to-equity ratio is low at 0.03, reflecting minimal leverage risk. Return on equity improved to 2.88%, suggesting better shareholder returns, although still moderate. Overall, the company maintains good financial health with low debt levels.

Cash Flow

Operating cash flow decreased by 46.83% to $4.58 million, indicating some cash generation challenges. However, the company achieved a positive free cash flow, showcasing discipline in capital expenditure. The free cash flow to net income ratio is strong, suggesting effective cash management despite reduced operating cash flow.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	599.11M	528.91M	486.38M	297.56M	319.33M	380.50M
Gross Profit	31.91M	33.48M	26.71M	11.74M	21.23M	18.12M
EBITDA	-620.00K	6.93M	1.91M	-9.30M	-3.86M	-12.13M
Net Income	-2.10M	3.86M	-1.33M	-11.10M	-6.02M	-14.49M
Balance Sheet
Total Assets	240.23M	234.20M	225.84M	230.12M	243.84M	252.18M
Cash, Cash Equivalents and Short-Term Investments	66.36M	46.68M	84.65M	63.69M	86.92M	70.01M
Total Debt	4.67M	4.47M	1.76M	4.00M	1.39M	276.00K
Total Liabilities	95.19M	99.79M	93.85M	96.83M	99.40M	101.75M
Stockholders Equity	144.43M	133.83M	131.36M	132.68M	143.79M	149.81M
Cash Flow
Free Cash Flow	-5.57M	4.21M	7.15M	-26.61M	3.92M	9.13M
Operating Cash Flow	-5.57M	4.58M	8.61M	-25.98M	4.14M	9.13M
Investing Cash Flow	755.00K	-39.13M	35.65M	31.88M	-1.38M	-17.78M
Financing Cash Flow	-1.83M	-2.38M	-2.49M	-2.17M	-1.74M	-2.42M

China Supply Chain Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Positive
• 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:3708, the sentiment is Positive. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and above the 200-day MA of 0.02, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.52 is Neutral, neither overbought nor oversold. The STOCH value of 39.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3708.

China Supply Chain Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0483	69 Neutral	HK$113.89M	9.75	6.64%	―	0.78%	863.64%
3708	65 Neutral	HK$127.54M	14.00	-1.51%	―	13.27%	-157.14%
1843	56 Neutral	HK$113.60M	-40.57	-2.00%	―	17.65%	-369.23%
0599	48 Neutral	HK$124.36M	-9.25	-2.88%	―	-0.45%	-257.14%
1443	46 Neutral	HK$79.30M	-1.20	-51.97%	4.92%	-7.56%	-231.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

China Supply Chain Holdings Limited Corporate Events

China Supply Chain Holdings Limited Announces Auditor Change

China Supply Chain Holdings Limited announced a change in its auditor, with Linksfield CPA Limited resigning due to a disagreement over audit fees for the fiscal year ending June 30, 2025. Infinity CPA Limited has been appointed as the new auditor, with the company and its audit committee confident that this change will enhance cost-effectiveness while maintaining audit quality, thus benefiting the company and its shareholders.