China Harmony Auto Holding Limited (3836) AI Stock Analysis

• Market Cap: €1.33B
• Dividend Yield: 4.16%
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -7.58%
• EPS Growth: -21.25%
• Country: HK
• Employees: 4,403
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Auto - Dealerships
• EPS (TTM): -0.16
• Shares Outstanding: 1,523,264,600
• 10 Day Avg. Volume: 5,185,907
• 30 Day Avg. Volume: 1,926,977
• PEG Ratio: -0.06
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.20
• 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: 54 Neutral
• Price Target: HK$1.00 ▲(9.89%Upside)

The overall stock score is affected primarily by the company's financial struggles, with declining revenue and profitability posing significant risks. Technical analysis shows strong bullish momentum, but overbought signals suggest caution. Valuation concerns arise from the negative P/E, although the dividend yield offers some appeal.

China Harmony Auto Holding Limited Business Overview & Revenue Model

Company Description

China Harmony Auto Holding Limited (3836) is a leading luxury automobile dealership group in China. The company primarily focuses on the sale and service of premium and ultra-premium automobile brands. It operates a network of dealerships offering a range of luxury vehicles, along with after-sales services, which include maintenance, repair, and parts support. Additionally, the company engages in the provision of used car sales, further expanding its market reach and customer offerings.

How the Company Makes Money

China Harmony Auto Holding Limited generates revenue primarily through the sale of luxury automobiles from a diverse portfolio of high-end brands. The company's key revenue streams include new vehicle sales, used car sales, and after-sales services such as maintenance, repairs, and spare parts supply. The company benefits from strategic partnerships with major luxury automotive manufacturers, enhancing its product offerings and dealership network. Factors contributing to its earnings include a strong brand portfolio, a growing market for luxury vehicles in China, and a robust after-sales service infrastructure that ensures continued customer engagement and additional revenue from service-related activities.

China Harmony Auto Holding Limited Financial Statement Overview

Summary

China Harmony Auto Holding Limited faces significant financial challenges, with declining revenue and profitability impacting its financial health. While leveraging is kept moderate, the negative income has affected returns on equity. Cash flow volatility further complicates the financial outlook. Stabilizing revenue and improving operational efficiency are crucial for future success.

Income Statement

China Harmony Auto Holding Limited has experienced declining revenue and profitability. The gross profit margin has decreased significantly over the years, with a notable drop in net income resulting in negative net profit margins in recent periods. The EBIT and EBITDA margins have also been negative, indicating operating inefficiencies. The revenue growth rate has been inconsistent, with recent declines in total revenue.

Balance Sheet

The company has maintained a moderate debt-to-equity ratio, reflecting a balanced approach to leverage. However, the stockholders' equity has decreased over time. The equity ratio remains relatively stable, indicating a fair proportion of assets funded by equity. Return on equity has been negative recently due to losses, which is a concern for potential investors.

Cash Flow

Cash flow from operations has been volatile, with a significant drop in free cash flow in the latest period. The free cash flow to net income ratio shows inconsistency due to fluctuating earnings. The operating cash flow to net income ratio is impacted by the negative net income, indicating challenges in converting earnings into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.62B	16.58B	16.32B	17.98B	14.75B
Gross Profit	699.73M	964.03M	1.08B	1.75B	1.30B
EBITDA	208.22M	305.43M	-1.06B	1.36B	1.03B
Net Income	-291.07M	-252.19M	-1.63B	673.15M	410.70M
Balance Sheet
Total Assets	12.25B	10.84B	10.80B	13.25B	12.35B
Cash, Cash Equivalents and Short-Term Investments	1.12B	1.07B	1.19B	1.74B	1.82B
Total Debt	4.74B	3.11B	2.99B	3.53B	3.34B
Total Liabilities	6.99B	5.17B	4.78B	5.21B	4.80B
Stockholders Equity	5.17B	5.57B	5.95B	7.97B	7.49B
Cash Flow
Free Cash Flow	-779.36M	5.03M	397.59M	37.73M	607.63M
Operating Cash Flow	-166.84M	357.35M	781.12M	776.10M	799.52M
Investing Cash Flow	-623.78M	-389.50M	4.74M	-589.29M	-230.31M
Financing Cash Flow	873.31M	-184.08M	-1.08B	-271.94M	-208.49M

China Harmony Auto Holding Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3836, the sentiment is Positive. The current price of 0.91 is above the 20-day moving average (MA) of 0.69, above the 50-day MA of 0.64, and above the 200-day MA of 0.62, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 84.86 is Negative, neither overbought nor oversold. The STOCH value of 84.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3836.

China Harmony Auto Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	HK$26.40B	4.14	-2.03%	5.51%	-0.23%	-68.02%
3669	56 Neutral	HK$4.47B	20.35	1.44%	2.59%	-14.25%	-65.33%
3836	54 Neutral	€1.33B	―	-5.36%	4.16%	-7.58%	-21.25%
1728	52 Neutral	$1.43B	―		―	-15.73%	-73.42%
1268	49 Neutral	HK$3.06B	40.67	-56.58%	1.00%	-23.89%	-1698.95%
1771	46 Neutral	HK$165.00M	―	-9.04%	―	-23.03%	-1842.08%
1959	38 Underperform	HK$109.26M	―	-61.86%	―	-24.60%	-67.92%

China Harmony Auto Holding Limited Corporate Events

China Harmony Auto Revises Terms for Equity Disposal Agreement

China Harmony Auto Holding Limited has entered into a supplemental agreement with EGL and Mr. Feng to amend certain terms of a prior agreement concerning the disposal of a 45% equity interest in a disposal company. The revised terms ensure that both parties maintain their respective equity interests in the disposal company at 55% and 45% through coordinated exercise of conversion rights, preventing any deemed disposal or acquisition.

China Harmony Auto Announces EGM for Strategic Financial Moves

China Harmony Auto Holding Limited has announced an Extraordinary General Meeting (EGM) to be held on August 8, 2025, in Hong Kong. The meeting will address the approval of an agreement involving transactions such as Disposal and Capital Restructuring, which includes Preferred Loans. This move is significant for the company’s operational strategy and may impact its market positioning, reflecting its ongoing efforts to optimize its financial structure and shareholder value.

China Harmony Auto Announces EGM and Member Register Closure

China Harmony Auto Holding Limited has announced the closure of its register of members from August 5 to August 8, 2025, to determine shareholder eligibility for an upcoming extraordinary general meeting (EGM) on August 8, 2025. The meeting will address the approval of an agreement and related transactions, with a circular containing detailed information to be dispatched to shareholders by July 23, 2025, potentially impacting the company’s operational and strategic decisions.

China Harmony Auto Passes Key Resolutions at AGM

At the annual general meeting held on June 18, 2025, China Harmony Auto Holding Limited successfully passed all proposed resolutions. Key resolutions included the re-election of executive directors, authorization of the board to fix directors’ remuneration, reappointment of the company’s auditor, and granting mandates to repurchase and issue shares. These decisions reflect the company’s strategic focus on governance and financial management, potentially impacting its market positioning and shareholder value.

China Harmony Auto Announces Major Equity Disposal and Capital Restructuring

China Harmony Auto Holding Limited has announced a major transaction involving the disposal of a 45% equity interest in a disposal company, along with shareholder’s loans, to EGL, a company wholly owned by Mr. Feng. The transaction, valued at RMB330 million, will be offset against existing loans owed by China Harmony to EGL. The company plans a capital restructuring to facilitate the disposal, which will include converting shareholder loans into preferred loans and convertible notes. This transaction is significant as it constitutes a major transaction under the Hong Kong Stock Exchange’s listing rules, indicating a strategic shift in the company’s financial and operational structure.

China Harmony Auto Announces 2025 AGM Agenda

China Harmony Auto Holding Limited has announced its upcoming annual general meeting scheduled for June 18, 2025, in Hong Kong. Key agenda items include the presentation of the 2024 financial statements, re-election of executive directors, re-appointment of auditors, and a proposal for a share repurchase mandate. These resolutions are crucial for maintaining the company’s governance structure and financial strategy, potentially impacting shareholder value and market confidence.