China Hanking Holdings Ltd. (3788) AI Stock Analysis

• Market Cap: HK$3.82B
• Dividend Yield: 1.02%
• Average Volume (3M): 5.74M
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.51
• Revenue Growth: -19.53%
• EPS Growth: 19.32%
• Country: HK
• Employees: 1,714
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Steel
• EPS (TTM): 0.10
• Shares Outstanding: 1,960,000,000
• 10 Day Avg. Volume: 8,152,200
• 30 Day Avg. Volume: 5,742,833
• PEG Ratio: 0.24
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.67
• 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

• Rating: 66 Neutral
• Price Target: HK$2.00 ▲(2.56%Upside)

The overall stock score reflects a balance between improving profitability and technical momentum, offset by revenue volatility and cash flow challenges. The stock's valuation appears high, suggesting limited upside potential without significant earnings growth.

China Hanking Holdings Ltd. Business Overview & Revenue Model

Company Description

China Hanking Holdings Ltd. (3788) is a leading investment holding company primarily engaged in the exploration, development, and production of mineral resources. The company operates in the mining sector, focusing on the extraction and sale of iron ore, gold, and nickel, catering to the growing demand in both domestic and international markets. With a commitment to sustainable mining practices, China Hanking Holdings Ltd. leverages advanced technologies and efficient resource management to enhance its production capabilities and maintain a competitive edge in the industry.

How the Company Makes Money

China Hanking Holdings Ltd. generates revenue through the extraction and sale of various mineral resources, including iron ore, gold, and nickel. The company operates several mining sites where these minerals are extracted, processed, and then sold to customers in different markets. A significant portion of its earnings comes from long-term supply agreements with industrial clients and distributors in the construction and manufacturing sectors, which rely on these minerals for production. Additionally, the company benefits from fluctuations in global commodity prices, which can enhance profitability when prices are favorable. Strategic partnerships and joint ventures with other mining companies and technology firms also contribute to its revenue by optimizing operations and expanding its market reach.

China Hanking Holdings Ltd. Financial Statement Overview

Summary

Despite improving profitability and a stable balance sheet, the company faces challenges with declining revenue and cash flow. The balance sheet is solid with robust equity and moderate leverage, but cash flow issues could constrain growth.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.48B	3.03B	2.60B	3.13B	2.68B
	Gross Profit
673.56M	621.95M	358.00M	1.22B	917.98M
	EBIT
372.28M	297.45M	97.71M	888.47M	582.55M
	EBITDA
495.72M	437.69M	221.99M	1.10B	811.02M
	Net Income Common Stockholders
180.94M	151.80M	-53.01M	658.96M	379.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
359.93M	664.94M	249.81M	280.49M	181.24M
	Total Assets
3.59B	3.61B	3.36B	3.81B	3.26B
	Total Debt
905.00M	789.02M	608.17M	645.97M	743.87M
	Net Debt
546.88M	518.76M	473.76M	366.48M	562.63M
	Total Liabilities
2.15B	2.16B	2.08B	2.24B	2.10B
	Stockholders Equity
1.43B	1.40B	1.27B	1.56B	1.16B
Cash Flow		Free Cash Flow
40.38M	185.36M	38.91M	781.52M	817.63M
	Operating Cash Flow
178.67M	318.96M	194.06M	1.00B	939.57M
	Investing Cash Flow
-68.22M	-114.97M	-43.68M	-489.96M	-497.18M
	Financing Cash Flow
-22.01M	-67.16M	-298.89M	-421.44M	-301.26M

China Hanking Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.95 is above the 20-day moving average (MA) of 1.79, above the 50-day MA of 1.37, and above the 200-day MA of 0.96, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 61.27 is Neutral, neither overbought nor oversold. The STOCH value of 33.88 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
2600	80 Outperform	$119.65B	6.49	20.63%	3.47%	2.84%	―
2899	75 Outperform	$527.73B	13.12	27.63%	11.46%	3.41%	60.46%
1208	69 Neutral	$40.91B	28.20	5.84%	―	2.70%	1493.33%
3788	66 Neutral	HK$3.82B	19.08	12.77%	1.02%	-19.53%	19.32%
Sector *	51 Neutral	$1.98B	-1.26	-21.11%	5.99%	2.92%	-30.46%
1053	42 Neutral	HK$11.82B	―	-16.73%	―	-29.52%	-73.10%

China Hanking Holdings Ltd. Corporate Events

China Hanking Holdings Updates Share Pledge by Controlling Shareholder

China Hanking Holdings Limited has announced an update regarding the pledge of shares by its controlling shareholder. Bisney Success Limited and Tuochuan Capital have pledged a total of 500 million shares, representing significant portions of the company’s issued share capital, to Bank of Fushun Co., Ltd. as securities for new loans and loans for a subsidiary. This move is expected to impact the company’s financial strategy and liquidity, as well as its market perception, given the involvement of key stakeholders.

China Hanking Holdings Approves AGM Resolutions and Board Changes

China Hanking Holdings Limited recently held its annual general meeting where all proposed resolutions were passed, including the approval of financial statements, the declaration of a final dividend, and the re-election of directors. The meeting also resulted in changes to the composition of the board committee, reflecting the company’s ongoing governance and operational strategies.

China Hanking Holdings Ltd. Announces Board Composition and Committee Roles

China Hanking Holdings Ltd. has announced the composition of its board of directors, detailing the roles and functions of its executive, non-executive, and independent non-executive directors. The board has established four committees, focusing on nomination, remuneration, audit, and health, safety, environmental protection, and community matters, indicating a structured approach to governance and operational oversight.

China Hanking Holdings Updates Nomination Committee Structure

China Hanking Holdings Limited has outlined the terms of reference and operating model for its Nomination Committee. The Committee will consist of three or more directors, primarily independent non-executive directors, with a focus on gender diversity. The chairman of the board or an independent director will lead the Committee, which will meet at least once a year to ensure proper governance and compliance with the company’s articles and the Hong Kong Stock Exchange’s Listing Rules.

China Hanking Holdings Announces 2025 AGM Agenda

China Hanking Holdings Limited has announced its upcoming annual general meeting to be held on May 20, 2025, in Shenyang City, China. Key agenda items include the approval of the company’s audited financial statements for 2024, a final dividend declaration, re-election of directors, and re-appointment of its auditor. These resolutions are set to impact the company’s governance and financial strategies, reflecting its ongoing commitment to shareholder value and operational transparency.

China Hanking Holdings Ltd. Announces Final Dividend for 2024

China Hanking Holdings Ltd. has announced a final cash dividend of HKD 0.02 per share for the financial year ending December 31, 2024. The dividend, subject to shareholders’ approval on May 20, 2025, will be paid on June 16, 2025, with the ex-dividend date set for May 30, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

China Hanking Holdings Pledges Shares for Loan Facility

China Hanking Holdings Limited announced that its controlling shareholder, Bisney Success Limited, has pledged 280 million shares, representing approximately 14.29% of the company’s issued share capital, to China Citic Bank Corporation Limited as security for a term loan facility. This move highlights the company’s strategic financial management, potentially impacting its operational liquidity and stakeholder interests.