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China Harmony Auto Holding Limited
(3836)
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Rating:42Neutral
Price Target:
HK$0.61
▼(-50.88% Downside)
Action:Reiterated
Date:07/01/26
The score is driven primarily by weak financial performance—persistent losses, thin margins, negative free cash flow, and rising leverage—despite a 2025 revenue rebound and improved operating cash flow. Technicals add pressure as the stock trades below key longer-term moving averages, and valuation signals are constrained by a negative P/E tied to ongoing unprofitability.
Positive Factors
Operating cash flow recovery
Operating cash flow swung positive in 2025 (~263.6m), showing the core dealership and after-sales operations generated cash. If sustained, this cash generation can fund working capital and routine capex, reduce reliance on external funding, and improve medium-term liquidity and resilience.
Negative Factors
Weak profitability and margins
Gross margin remained very thin (~5.9% in 2025) and the company stayed loss-making with negative ROE (~-12.9%). Persistent low margins and recurring losses erode equity, limit internal funding for growth, and make it harder to build durable profitability without structural margin improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating cash flow recovery
Operating cash flow swung positive in 2025 (~263.6m), showing the core dealership and after-sales operations generated cash. If sustained, this cash generation can fund working capital and routine capex, reduce reliance on external funding, and improve medium-term liquidity and resilience.
Read all positive factors
China Harmony Auto Holding Limited (3836) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$965.76M
Dividend Yield3.49%
Average Volume (3M)1.57M
Price to Earnings (P/E)―
Beta (1Y)1.72
Revenue Growth28.31%
EPS Growth-119.12%
CountryHK
Employees7,259
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,523,264,600
10 Day Avg. Volume2,393,369
30 Day Avg. Volume1,567,556
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.29
Price to Sales (P/S)0.07
P/FCF Ratio-4.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
China Harmony Auto Holding Limited Business Overview & Revenue Model
Company Description
China Harmony Auto Holding Limited, an investment holding company, engages in the sale of automobiles in Mainland China, Hong Kong, and internationally. The company offers luxury and ultra-luxury vehicles under the BMW, MINI, Audi, Volvo, Land Rov...
How the Company Makes Money
China Harmony Auto Holding Limited primarily makes money through (1) selling new vehicles via its dealership network, earning gross profit on the spread between vehicle procurement cost and retail selling price; (2) after-sales services, including...
China Harmony Auto Holding Limited Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
45
Neutral
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.03B | 15.62B | 16.58B | 16.32B | 17.98B |
| Gross Profit | 1.18B | 699.73M | 964.03M | 1.08B | 1.75B |
| EBITDA | -3.66M | 208.22M | 305.43M | -1.06B | 1.36B |
| Net Income | -634.99M | -291.07M | -252.19M | -1.63B | 673.15M |
Balance Sheet | |||||
| Total Assets | 12.91B | 12.25B | 10.84B | 10.80B | 13.25B |
| Cash, Cash Equivalents and Short-Term Investments | 1.95B | 1.12B | 1.07B | 1.19B | 1.74B |
| Total Debt | 6.47B | 4.74B | 3.11B | 2.99B | 3.53B |
| Total Liabilities | 7.85B | 6.99B | 5.17B | 4.78B | 5.21B |
| Stockholders Equity | 4.81B | 5.17B | 5.57B | 5.95B | 7.97B |
Cash Flow | |||||
| Free Cash Flow | -309.61M | -779.36M | 5.03M | 397.59M | 37.73M |
| Operating Cash Flow | 263.63M | -166.84M | 357.35M | 781.12M | 776.10M |
| Investing Cash Flow | -252.65M | -623.78M | -389.50M | 4.74M | -589.29M |
| Financing Cash Flow | 549.36M | 873.31M | -184.08M | -1.08B | -271.94M |
China Harmony Auto Holding Limited Technical Analysis
Neutral
1.25
Price Trends
0.76
Negative
0.93
Negative
1.07
Negative
Market Momentum
-0.05
Negative
53.04
Neutral
74.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3836, the sentiment is Neutral. The current price of 1.25 is above the 20-day moving average (MA) of 0.58, above the 50-day MA of 0.76, and above the 200-day MA of 1.07, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 53.04 is Neutral, neither overbought nor oversold. The STOCH value of 74.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3836.
China Harmony Auto Holding Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | HK$12.07B | -6.07 | -3.56% | 5.79% | -2.14% | -153.42% | |
49 Neutral | HK$1.38B | 146.25 | 0.89% | ― | -33.67% | ― | |
44 Neutral | HK$1.36B | -0.24 | -26.57% | 9.05% | -13.88% | -2685.61% | |
44 Neutral | HK$686.59M | -0.81 | -127.27% | 4.01% | -9.61% | 67.03% | |
44 Neutral | HK$1.43B | -0.32 | 1123.27% | ― | -9.75% | 29.53% | |
42 Neutral | HK$965.76M | -1.43 | -4.42% | 3.49% | 28.31% | -119.12% |
* Consumer Cyclical Sector Average
HK:3836
China Harmony Auto Holding Limited
0.66
0.01
1.54%
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China Harmony Auto Holding Limited Corporate Events
China Harmony Auto Revamps Board With New Independent Director
Jun 30, 2026
China Harmony Auto Holding Limited announced changes to its board, confirming the resignation of independent non-executive director Mr. Lau Kwok Fan, who also stepped down from the audit and remuneration committees due to work arrangements. The co...
China Harmony Auto Sets Out Board and Committee Structure
Jun 30, 2026
China Harmony Auto Holding Limited has outlined the current composition of its board, led by Chairman Feng Changge, Deputy Chairman Feng Shaolun, President Liu Fenglei, and three independent non-executive directors, underscoring a clear division b...
China Harmony Auto Wins Strong Shareholder Backing for Board, Auditor and Capital Mandates
Jun 18, 2026
Shareholders of China Harmony Auto Holding Limited overwhelmingly approved all six ordinary resolutions at the annual general meeting held on 18 June 2026, including receipt of the 2025 audited financial statements and re-election of key executive...
China Harmony Auto Sets 2026 AGM to Renew Board, Auditor and Share Buyback Mandate
May 27, 2026
China Harmony Auto Holding Limited has called its annual general meeting for 18 June 2026 in Hong Kong, where shareholders will review the audited consolidated financial statements for the year ended 31 December 2025 and receive reports from the b...
China Harmony Auto Director Resigns; Board Launches Search for Successor
Apr 27, 2026
China Harmony Auto Holding Limited announced that independent non-executive director Lau Kwok Fan has resigned from the board and from his roles on the audit and remuneration committees due to work arrangements. Lau will remain in his position unt...
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.