China Rongzhong Financial Holdings Company Limited (3963) AI Stock Analysis

• Market Cap: HK$169.90M
• Dividend Yield: N/A
• Average Volume (3M): 120.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: -8.54%
• EPS Growth: 89.70%
• Country: HK
• Employees: 127
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): -0.03
• Shares Outstanding: 606,802,550
• 10 Day Avg. Volume: 215,000
• 30 Day Avg. Volume: 120,066
• PEG Ratio: <0.01
• Price to Book (P/B): -1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 101.17
• 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: 45 Neutral
• Price Target: ―

China Rongzhong Financial Holdings shows positive revenue growth and operational improvements, but significant issues remain with profitability and high leverage, impacting financial stability. Technical indicators suggest a bearish trend with some potential for short-term recovery. The valuation is weak due to negative earnings and no dividend yield, which lowers attractiveness for investors focused on income or stable growth.

China Rongzhong Financial Holdings Company Limited Business Overview & Revenue Model

Company Description

China Rongzhong Financial Holdings Company Limited (3963) is a financial services company based in China, primarily engaged in the provision of financial leasing services. The company serves a diverse range of industries, including industrial machinery, medical equipment, and transportation, by offering leasing solutions tailored to the specific needs of its clients. It plays a critical role in facilitating capital investment for businesses by providing alternative financing options.

How the Company Makes Money

China Rongzhong Financial Holdings Company Limited generates revenue through its financial leasing services. The company earns money by leasing equipment and machinery to clients across various sectors, receiving lease payments over the term of the lease contract. These payments typically include interest and principal components, forming the core revenue stream for the company. Additionally, the company might benefit from interest rate differentials and residual value of leased assets at the end of lease terms. Partnerships with manufacturers and suppliers of equipment also contribute to the company's ability to offer competitive and tailored leasing solutions, thereby supporting its revenue generation efforts.

China Rongzhong Financial Holdings Company Limited Financial Statement Overview

Summary

The company has shown improvement in revenue growth and operational efficiency, but continues to face challenges in profitability and has high leverage. While the cash flow from operations is strong, negative free cash flow indicates financial constraints. Overall, the company is on a recovery path, yet financial stability is a concern.

Income Statement

The company has shown an improvement in revenue, with a growth rate of 63.85% from 2023 to 2024. However, the net profit margin remains negative, although losses have reduced, indicating some progress towards profitability. Gross profit margin remains strong at 100%, reflecting no cost of goods sold. EBIT margin at 65.94% in 2024 suggests operational efficiency despite the negative net income.

Balance Sheet

The debt-to-equity ratio is concerning due to high leverage, with total liabilities significantly exceeding equity. Stockholders' equity remains positive since 2023, showing some recovery. However, the overall equity ratio is low at 21.79%, indicating potential financial instability.

Cash Flow

The company has a strong operating cash flow to net income ratio, indicating efficient cash generation from operations. However, free cash flow is negative, suggesting challenges in covering capital expenditures and debt obligations. Despite this, the improvement in cash flow metrics compared to previous years is a positive sign.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
78.08M	89.00M	51.06M	35.12M	-13.96M	27.48M
	Gross Profit
78.08M	18.95M	51.06M	10.45M	-13.96M	21.01M
	EBIT
49.96M	-3.01M	24.34M	-9.31M	-19.93M	10.67M
	EBITDA
0.00	9.61M	0.00	-522.41M	0.00	-32.80M
	Net Income Common Stockholders
-12.64M	-9.62M	-124.61M	-567.55M	-121.38M	-65.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.35M	6.97M	14.57M	15.48M	12.31M	21.59M
	Total Assets
89.45M	84.69M	93.64M	433.92M	846.97M	915.08M
	Total Debt
3.73M	40.03M	62.71M	778.64M	660.29M	615.93M
	Net Debt
-3.61M	33.06M	48.14M	763.16M	647.99M	594.35M
	Total Liabilities
73.41M	66.95M	118.64M	1.13B	956.96M	899.80M
	Stockholders Equity
15.90M	18.46M	-31.29M	-701.43M	-109.99M	15.28M
Cash Flow		Free Cash Flow
-28.29M	-15.06M	473.00K	-6.45M	19.73M	29.25M
	Operating Cash Flow
24.98M	22.72M	29.82M	2.70M	19.73M	29.25M
	Investing Cash Flow
-35.69M	-25.59M	-12.67M	2.05M	120.00K	405.00K
	Financing Cash Flow
2.67M	-4.04M	-18.87M	-2.56M	-30.15M	-50.68M

China Rongzhong Financial Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3963, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.25, and below the 200-day MA of 0.37, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.05 is Neutral, neither overbought nor oversold. The STOCH value of 86.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3963.

China Rongzhong Financial Holdings Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1273	67 Neutral	HK$161.85M	3.49	5.67%	13.33%	7.06%	-11.84%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%
1518	59 Neutral	HK$536.91M	10.35	8.82%	2.01%	-10.82%	-43.85%
1808	58 Neutral	HK$852.21M	10.32	25.16%	―	561.25%	639.47%
6068	57 Neutral	HK$231.81M	2.13	16.80%	51.40%	-41.24%	-36.17%
3963	45 Neutral	HK$169.90M	―		―	-8.54%	89.70%

China Rongzhong Financial Holdings Company Limited Corporate Events

China Rongzhong Announces Change in Board Lot Size

China Rongzhong Financial Holdings Company Limited has announced a change in the board lot size for its shares traded on the Hong Kong Stock Exchange from 1,000 shares to 10,000 shares, effective March 20, 2025. This adjustment aims to reduce transaction and registration costs for shareholders and potential investors, aligning with the company’s interests and market guidelines. The company has no immediate plans for other corporate actions or fundraising activities, though it remains open to future opportunities.