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China Harmony Auto Holding Limited (HK:3836)
:3836

China Harmony Auto Holding Limited (3836) AI Stock Analysis

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HK

China Harmony Auto Holding Limited

(Frankfurt:3836)

Rating:47Neutral
Price Target:
China Harmony Auto Holding Limited faces significant financial challenges, with declining revenue and profitability impacting its financial health. Technical indicators offer neutral signals, showing no strong momentum in either direction. Valuation is hampered by negative earnings, although the high dividend yield could be appealing to some investors. The company's ability to stabilize revenue and improve operational efficiency will be key to improving its financial position.

China Harmony Auto Holding Limited (3836) vs. iShares MSCI Hong Kong ETF (EWH)

China Harmony Auto Holding Limited Business Overview & Revenue Model

Company DescriptionChina Harmony Auto Holding Limited (3836) is a prominent automobile dealership group based in China, specializing in the sale and servicing of luxury and ultra-luxury vehicles. The company operates a network of dealerships that offer an extensive range of premium automotive brands, providing a comprehensive suite of services including vehicle sales, after-sales service, and spare parts supply. China Harmony Auto also engages in the provision of related automotive services such as financing and insurance, contributing to its position as a leading player in the high-end automotive sector.
How the Company Makes MoneyChina Harmony Auto Holding Limited primarily generates revenue through the sale of luxury and ultra-luxury vehicles, leveraging its extensive network of dealerships and partnerships with prestigious automotive brands. The company's revenue streams include new car sales, which constitute a significant portion of its income, along with after-sales services such as maintenance and repairs, which provide a steady flow of recurring revenue. Additionally, the company offers financing and insurance products in collaboration with financial institutions, earning commissions and fees from these services. Strategic partnerships with major luxury car manufacturers enhance its product offerings and brand portfolio, further driving sales and profitability.

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
40
Negative
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
55
Neutral
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
45
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue15.62B16.58B16.32B17.98B14.75B
Gross Profit699.73M964.03M1.08B1.75B1.30B
EBITDA208.22M305.43M-1.06B1.36B1.03B
Net Income-291.07M-252.19M-1.63B673.15M410.70M
Balance Sheet
Total Assets12.25B10.84B10.80B13.25B12.35B
Cash, Cash Equivalents and Short-Term Investments1.12B1.07B1.19B1.74B1.82B
Total Debt4.74B3.11B2.99B3.53B3.34B
Total Liabilities6.99B5.17B4.78B5.21B4.80B
Stockholders Equity5.17B5.57B5.95B7.97B7.49B
Cash Flow
Free Cash Flow-779.36M5.03M397.59M37.73M607.63M
Operating Cash Flow-166.84M357.35M781.12M776.10M799.52M
Investing Cash Flow-623.78M-389.50M4.74M-589.29M-230.31M
Financing Cash Flow873.31M-184.08M-1.08B-271.94M-208.49M

China Harmony Auto Holding Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.67
Price Trends
50DMA
0.62
Positive
100DMA
0.62
Positive
200DMA
0.60
Positive
Market Momentum
MACD
0.01
Negative
RSI
57.41
Neutral
STOCH
51.48
Neutral
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 0.67 is above the 20-day moving average (MA) of 0.63, above the 50-day MA of 0.62, and above the 200-day MA of 0.60, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 57.41 is Neutral, neither overbought nor oversold. The STOCH value of 51.48 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
$3.37B4.05-1.30%6.64%0.16%-63.79%
54
Neutral
HK$4.00B18.681.44%7.07%-14.25%-65.33%
52
Neutral
$1.43B
-15.73%-73.42%
52
Neutral
$3.07B40.67-56.58%2.12%-23.89%-1698.95%
47
Neutral
HK$980.40M-5.36%5.52%-7.58%-21.25%
46
Neutral
HK$174.00M-9.04%-23.03%-1842.08%
40
Underperform
HK$142.30M-61.86%-24.60%-67.92%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3836
China Harmony Auto Holding Limited
0.66
0.19
40.43%
HK:1959
Centenary United Holdings Limited
0.27
0.11
68.75%
HK:1771
Sunfonda Group Holdings Ltd.
0.29
-0.30
-50.85%
HK:1728
China Zhengtong Auto Services Holdings
0.14
-0.06
-29.56%
HK:3669
China Yongda Automobiles Services
2.07
0.55
36.54%
HK:1268
China MeiDong Auto Holdings
2.21
0.25
12.93%

China Harmony Auto Holding Limited Corporate Events

China Harmony Auto Passes Key Resolutions at AGM
Jun 18, 2025

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
May 23, 2025

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
Apr 29, 2025

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.

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 01, 2025