China Hanking Holdings Ltd. (3788) AI Stock Analysis

• Market Cap: HK$7.75B
• Dividend Yield: 1.04%
• Average Volume (3M): 3.20M
• Price to Earnings (P/E): 38.5
• Beta (1Y): 0.57
• Revenue Growth: -6.73%
• EPS Growth: -21.30%
• Country: HK
• Employees: 1,714
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.06
• Shares Outstanding: 2,035,000,000
• 10 Day Avg. Volume: 2,848,828
• 30 Day Avg. Volume: 3,203,327
• PEG Ratio: 0.39
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 34.39
• 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: 54 Neutral
• Price Target: HK$3.50 ▼(-9.09% Downside)

The overall stock score of 53.5 reflects a combination of mixed financial performance, bearish technical indicators, and high valuation concerns. The company's improving profitability is overshadowed by declining revenue and cash flow, while technical analysis suggests a downtrend. The high P/E ratio indicates potential overvaluation, contributing to a cautious outlook.

Positive Factors

Improving Profitability

The improvement in net profit margin indicates better cost management and operational efficiency, which can enhance long-term profitability and shareholder value.

Strong Equity Base

A strong equity base provides financial stability and reduces risk, supporting the company's ability to invest in growth opportunities and withstand economic fluctuations.

Enhanced Efficiency

Improved return on equity suggests the company is more effectively using its equity to generate profits, which is a positive indicator of management's ability to drive value creation.

Negative Factors

Revenue Volatility

Significant revenue decline indicates volatility in revenue generation, which can challenge the company's ability to maintain consistent growth and financial performance over time.

Cash Flow Challenges

Reduced free cash flow limits the company's ability to fund expansion, pay down debt, or return capital to shareholders, potentially impacting long-term financial flexibility.

Increased Leverage

Increased leverage, while manageable, could heighten financial risk if not controlled, potentially affecting the company's ability to invest in growth or weather economic downturns.

China Hanking Holdings Ltd. Business Overview & Revenue Model

Company Description

China Hanking Holdings Limited, together with its subsidiaries, engages in the exploration, mining, processing, smelting, and marketing of mineral resources in the People's Republic of China and Australia. The company operates three iron ore mines, including Aoniu, Maogong, and Shangma mines, which are located in the Anshan-Benxi iron ore belt. It also operates Mount Bundy gold located in northern Australia and Coolgardie gold projects located in western Australia. In addition, the company engages in the sale of agricultural and forestry products; and manufacture and sale of green building materials. Further, it offers leasing services; travel and accommodation services; and technical development and technical consultation services. The company was founded in 1992 and is headquartered in Shenyang, China.

How the Company Makes Money

China Hanking Holdings Ltd. generates revenue primarily through the mining and sale of gold. The company operates several mines, where it extracts gold and other minerals, which are then processed and sold to various markets, including domestic and international buyers. Key revenue streams include the direct sale of mined gold, which is influenced by global gold prices, as well as any by-products generated during the mining process. The company may also engage in partnerships with other mining firms or entities within the resource sector to enhance its operational capacity and market reach, contributing positively to its earnings. Additionally, fluctuations in commodity prices, operational efficiency, and production volume play significant roles in determining the company's overall financial performance.

China Hanking Holdings Ltd. Financial Statement Overview

Summary

China Hanking Holdings Ltd. presents a mixed financial picture with improving profitability but declining revenue and cash flow. The balance sheet is solid with a robust equity base and moderate leverage, while cash flow challenges could impact future growth and financial flexibility. The company must address revenue volatility and enhance cash flow generation to sustain growth and profitability.

Income Statement

The company displays mixed performance trends. While the gross profit margin remained relatively consistent at 27.1% in 2024, the net profit margin improved to 7.3% from 5% in 2023, indicating better cost management. However, revenue declined by 18% in 2024, following a 16% increase in 2023, suggesting volatility in revenue generation. The EBIT margin increased to 15% in 2024 from 9.8% in 2023, and the EBITDA margin also improved. Overall, the profitability metrics are improving, but revenue fluctuations pose a challenge.

Balance Sheet

The balance sheet shows a healthy equity ratio of 39.9% in 2024, indicating a strong equity base relative to total assets. The debt-to-equity ratio rose slightly to 0.63 in 2024 from 0.56 in 2023, suggesting a modest increase in leverage, but it remains manageable. Return on equity improved to 12.6% from 10.8% in 2023, reflecting enhanced efficiency in using equity to generate profit. Overall, the balance sheet is stable with some increase in leverage, but strong equity support mitigates risk.

Cash Flow

The cash flow statement reflects a reduction in free cash flow by 36.9% in 2024, indicating less cash available for expansion or debt reduction. The operating cash flow to net income ratio declined to 0.99 in 2024 from 2.1 in 2023, showing reduced cash generation efficiency. The free cash flow to net income ratio is 0.65 in 2024, down from 1.22 in 2023. These declines highlight potential liquidity pressures, though operating cash flow remains positive.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.62B	2.48B	3.03B	2.60B	3.13B	2.68B
Gross Profit	687.36M	673.56M	621.95M	358.00M	1.22B	917.98M
EBITDA	485.63M	495.72M	437.69M	221.99M	1.10B	771.49M
Net Income	177.79M	180.94M	151.80M	-51.30M	658.96M	379.44M
Balance Sheet
Total Assets	4.05B	3.59B	3.61B	3.36B	3.81B	3.26B
Cash, Cash Equivalents and Short-Term Investments	449.87M	359.93M	664.94M	249.81M	280.49M	181.24M
Total Debt	1.10B	905.00M	789.02M	608.17M	645.97M	743.87M
Total Liabilities	2.51B	2.15B	2.16B	2.08B	2.24B	2.10B
Stockholders Equity	1.53B	1.43B	1.40B	1.27B	1.56B	1.16B
Cash Flow
Free Cash Flow	-84.93M	40.38M	185.36M	38.91M	781.52M	817.63M
Operating Cash Flow	-45.98M	178.67M	318.96M	194.06M	1.00B	939.57M
Investing Cash Flow	-420.94M	-68.22M	-114.97M	-43.68M	-489.96M	-497.18M
Financing Cash Flow	572.52M	-22.01M	-67.16M	-298.89M	-421.44M	-301.26M

China Hanking Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.85
• 50DMA: Negative
• 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:3788, the sentiment is Positive. The current price of 3.85 is above the 20-day moving average (MA) of 3.70, below the 50-day MA of 4.09, and above the 200-day MA of 2.50, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 50.78 is Neutral, neither overbought nor oversold. The STOCH value of 44.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3788.

China Hanking Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0826	68 Neutral	HK$8.58B	21.04	5.44%	1.83%	-10.53%	13.93%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0581	54 Neutral	HK$4.99B	17.94	1.16%	0.75%	-14.11%	―
0323	54 Neutral	HK$28.88B	-8.28	-8.13%	―	-10.10%	10.40%
3788	54 Neutral	HK$7.75B	38.48	11.79%	1.04%	-6.73%	-21.30%
1053	42 Neutral	HK$14.12B	-4.72	-12.42%	―	-14.20%	8.19%
0347	41 Neutral	HK$24.02B	-4.00	-8.39%	―	-9.09%	34.73%

China Hanking Holdings Ltd. Corporate Events

China Hanking Receives Dewatering Approval for Golden Pig Mine

China Hanking Holdings Ltd. announced that it has received approval from the Western Australia Government’s Department of Water and Environmental Regulation for dewatering operations at the Golden Pig gold mine. This approval facilitates the low-cost discharge of underground water, paving the way for underground mining activities. The Cygnet gold project, which includes the Golden Pig, Copperhead, and Corinthia mines, aims to produce over 90,000 ounces of gold annually. The company is in the process of securing further approvals for its mining proposals and related facilities.

China Hanking Holdings Grants Share Options Ahead of Hanking Gold Spin-off

China Hanking Holdings Ltd. has announced the granting of 78 million share options under the Hanking Gold Share Option Scheme to key executives and employees. This move is part of a strategic plan to incentivize performance and align interests with the company’s goals, particularly in light of the upcoming spin-off and separate listing of Hanking Gold on the main board of the Stock Exchange.

China Hanking Holdings Ltd. Restructures for Hanking Gold Spin-off

China Hanking Holdings Ltd. has announced a series of connected transactions as part of its corporate restructuring efforts in preparation for the proposed spin-off and separate listing of Hanking Gold. The company has completed the acquisition of the remaining share capital in Cygnet Gold, making it a wholly-owned subsidiary, and has initiated a capital increase in Hanking Gold. These strategic moves are aimed at consolidating its gold assets and enhancing its market position, with no significant financial impact anticipated on the group.

China Hanking Completes Pre-IPO Capital Raising for Hanking Gold

China Hanking Holdings Limited has successfully completed a pre-IPO capital raising for its subsidiary, Hanking Gold Limited, by issuing 436,550,000 shares at HK$2.62 each, raising approximately HK$1.14 billion. The funds will be used for the development of Australian gold mining projects, and the completion of this subscription alters the shareholding structure, with Hanking Gold now 91.2% owned by China Hanking Holdings, setting the stage for a proposed spin-off and parallel listing.

China Hanking Holdings Announces Strategic Share Subscription for Hanking Gold

China Hanking Holdings Ltd. announced that its subsidiary, Hanking Gold Limited, has entered into subscription agreements to issue 436,550,000 new shares at HK$2.62 each. This move is part of a strategic plan involving a proposed spin-off and pre-IPO capital raising, which will result in a parallel listing structure for the company and Hanking Gold, potentially impacting its market positioning and shareholder value.

China Hanking Completes New Share Issuance

China Hanking Holdings Ltd. announced the successful completion of a new share issuance under its general mandate, with 75,000,000 shares allotted at HK$3.13 each. The shares, representing 3.69% of the company’s enlarged share capital, were issued to Zijin Global Fund and Gold Mountains, both independent third parties, without resulting in any new substantial shareholders.

China Hanking Holdings to Issue New Shares Under Subscription Agreement

China Hanking Holdings Ltd. announced a Subscription Agreement with Zijin Global Fund and Gold Mountains to issue 75 million new shares at HK$3.13 each, raising approximately HK$231.45 million net. This strategic move, involving a 3.69% increase in issued share capital, aims to strengthen the company’s financial position and enhance its market presence.