China Harmony Auto Holding Limited (3836) AI Stock Analysis

• Market Cap: HK$1.36B
• Dividend Yield: 3.98%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.37
• Revenue Growth: 11.33%
• EPS Growth: 56.94%
• Country: HK
• Employees: 4,403
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): >-0.01
• Shares Outstanding: 1,523,264,600
• 10 Day Avg. Volume: 1,147,050
• 30 Day Avg. Volume: 1,234,483
• PEG Ratio: -0.15
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -0.98
• 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): 1.72
• Revenue Forecast (FY): HK$158.45B

• Rating: 45 Neutral
• Price Target: HK$0.91 ▼(-27.44% Downside)

The overall stock score reflects significant financial challenges, with declining revenue and profitability being the most impactful factors. Technical analysis indicates weak market momentum, while valuation concerns are mitigated slightly by a high dividend yield. Stabilizing financial performance and improving market sentiment are crucial for future improvement.

Positive Factors

Diverse Revenue Streams

China Harmony Auto's diverse revenue streams from vehicle sales, after-sales services, and financing solutions provide a stable income base, reducing reliance on any single source and enhancing resilience against market fluctuations.

Strategic Partnerships

Partnerships with leading automotive manufacturers allow China Harmony Auto to offer a wide range of high-end vehicles, strengthening its market position and attracting a premium customer base.

Digital Platform Focus

By leveraging digital platforms, China Harmony Auto improves customer engagement and operational efficiency, aligning with industry trends towards digital transformation and potentially increasing market share.

Negative Factors

Declining Profitability

Decreasing profitability margins indicate operational inefficiencies and pricing pressures, which could hinder long-term financial health and competitiveness in the luxury auto market.

Negative Cash Flow Trends

Volatile cash flow and declining free cash flow suggest challenges in sustaining operations and funding growth initiatives, potentially limiting strategic flexibility.

Decreasing Stockholders' Equity

A decrease in stockholders' equity reflects potential financial instability, reducing the company's ability to absorb losses and invest in future growth opportunities.

China Harmony Auto Holding Limited Business Overview & Revenue Model

Company Description

China Harmony Auto Holding Limited, an investment holding company, engages in the sale and service of motor vehicles in Mainland China. The company sells luxury and ultra-luxury passenger vehicles under the BMW, Lexus, Volvo, Audi, MINI, Jaguar, Land Rover, Lincoln, Alfa Romeo, Bentley, Rolls Royce, Ferrari, Lamborghini, and Maserati brands through its 76 dealership outlets. It also offers finance leasing and insurance agency services; and sells pre-owned motor vehicles, as well as imports vehicles. The company was formerly known as China Harmony New Energy Auto Holding Limited and changed its name to China Harmony Auto Holding Limited in July 2020. China Harmony Auto Holding Limited was founded in 2005 and is headquartered in Zhengzhou, the People's Republic of China.

How the Company Makes Money

China Harmony Auto generates revenue through multiple key streams. The primary source of income comes from the sale of vehicles, particularly luxury and premium automobiles, which are sold through its extensive dealership network. The company also earns revenue from after-sales services, including vehicle maintenance, repairs, and parts sales, which provide a steady stream of income post-vehicle purchase. Additionally, China Harmony Auto offers financing solutions to customers, facilitating vehicle purchases and earning interest on loans. Strategic partnerships with automotive manufacturers enhance the company's product offerings and may include incentives or bonuses based on sales performance. Overall, the combination of vehicle sales, after-sales services, and financing solutions forms the core of the company's revenue model.

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. The company maintains moderate leverage, but negative income has affected returns on equity. Cash flow volatility further complicates the financial outlook.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.79B	15.62B	16.58B	16.32B	17.98B	14.75B
Gross Profit	893.25M	699.73M	964.03M	1.08B	1.75B	1.30B
EBITDA	277.00M	208.22M	305.43M	-1.06B	1.36B	1.03B
Net Income	-226.59M	-291.07M	-252.19M	-1.63B	673.15M	410.70M
Balance Sheet
Total Assets	11.87B	12.25B	10.84B	10.80B	13.25B	12.35B
Cash, Cash Equivalents and Short-Term Investments	1.10B	1.12B	1.07B	1.19B	1.74B	1.82B
Total Debt	4.81B	4.74B	3.11B	2.99B	3.53B	3.34B
Total Liabilities	6.61B	6.99B	5.17B	4.78B	5.21B	4.80B
Stockholders Equity	5.17B	5.17B	5.57B	5.95B	7.97B	7.49B
Cash Flow
Free Cash Flow	-724.72M	-779.36M	5.03M	397.59M	37.73M	607.63M
Operating Cash Flow	-292.04M	-166.84M	357.35M	781.12M	776.10M	799.52M
Investing Cash Flow	-533.24M	-623.78M	-389.50M	4.74M	-589.29M	-230.31M
Financing Cash Flow	742.51M	873.31M	-184.08M	-1.08B	-271.94M	-208.49M

China Harmony Auto Holding Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.91, above the 50-day MA of 1.13, and above the 200-day MA of 1.02, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 41.65 is Neutral, neither overbought nor oversold. The STOCH value of 58.07 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1728	52 Neutral	$1.43B	-0.25	―	―	-9.07%	-26.94%
3669	47 Neutral	$3.17B	-0.92	-26.57%	8.95%	-13.69%	-1296.59%
1959	46 Neutral	HK$1.56B	-25.88	-48.30%	―	-41.19%	30.99%
3836	45 Neutral	HK$1.36B	―	-4.42%	3.98%	11.33%	56.94%
1268	45 Neutral	$2.30B	-0.70	-87.36%	3.35%	-14.04%	-4222.02%
1771	45 Neutral	HK$153.00M	―	-8.81%	―	-24.42%	-115.68%

China Harmony Auto Holding Limited Corporate Events

China Harmony Auto Donates HK$5 Million for Tai Po Fire Relief

China Harmony Auto Holding Limited announced a voluntary donation of HK$5 million to support fire rescue efforts in Tai Po District, Hong Kong, following a major fire incident. The donation will aid medical assistance, temporary accommodation, and post-disaster reconstruction for affected residents. The company also deployed resources, including electric vehicles and emergency supplies, to support rescue operations. This initiative reflects the company’s commitment to corporate social responsibility, although it is not expected to impact its financial condition or operations.

China Harmony Auto Reports Financial Challenges Amidst Competitive Market

China Harmony Auto Holding Limited has issued a supplemental announcement regarding its 2024 Annual Report, highlighting key issues related to its Share Option Scheme and financial dealings with the Independent Aftersales Company (IAC). The company reported an expected credit loss of approximately RMB139.6 million due to IAC’s financial struggles, exacerbated by intense competition in the new energy vehicle market. Despite efforts to optimize operations, IAC’s financial position deteriorated, leading to ongoing discussions for settlement solutions. This situation reflects the challenging market conditions and may impact stakeholders’ perceptions of the company’s financial stability.

China Harmony Auto Completes Strategic Equity Transaction

China Harmony Auto Holding Limited has completed a significant discloseable transaction involving the subscription and disposal of equity interest in a subsidiary. This strategic investment enhances the partnership between the company and the subscriber, aiming to accelerate the overseas development strategy in the new energy vehicle sector. The collaboration is expected to improve service quality and operational efficiency, contributing to the global advancement of green and intelligent transportation.