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

• Market Cap: HK$147.45M
• Dividend Yield: N/A
• Average Volume (3M): 99.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: -8.54%
• EPS Growth: 89.70%
• Country: HK
• Employees: 127
• Sector: Financial
• Sector Strength: 83
• Industry: Financial - Credit Services
• EPS (TTM): -0.03
• Shares Outstanding: 606,802,550
• 10 Day Avg. Volume: 22,200
• 30 Day Avg. Volume: 99,333
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

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, an investment holding company, provides financial leasing services in the People's Republic of China. The company focuses on financing the needs of SMEs in Hubei province. It provides financial leasing services in the categories of sales and leaseback, and direct financial leasing. The company also offers value-added services, such as advisory and consultancy services to its customers. It primarily serves laser processing, plastics, industrial processing, textile and garments, hotel and leisure, and other industries. The company was founded in 2008 and is headquartered in Wuhan, the People's Republic of China.

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
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
83.65M	84.83M	35.12M	15.82M	27.48M
	Gross Profit
83.65M	18.41M	10.45M	9.84M	21.01M
	EBIT
55.17M	-14.42M	-9.31M	-1.03M	10.67M
	EBITDA
9.61M	-67.74M	-522.41M	-91.87M	-32.80M
	Net Income Common Stockholders
-9.62M	-124.61M	-567.55M	-121.38M	-65.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.97M	14.57M	15.48M	12.31M	21.59M
	Total Assets
84.69M	93.64M	433.92M	846.97M	915.08M
	Total Debt
40.03M	62.71M	778.64M	660.29M	615.93M
	Net Debt
33.06M	48.14M	763.16M	647.99M	594.35M
	Total Liabilities
66.95M	118.64M	1.13B	956.96M	899.80M
	Stockholders Equity
18.46M	-31.29M	-701.43M	-109.99M	15.28M
Cash Flow		Free Cash Flow
-15.06M	473.00K	-6.45M	19.73M	29.25M
	Operating Cash Flow
22.72M	29.82M	2.70M	19.73M	29.25M
	Investing Cash Flow
-25.59M	-12.67M	2.05M	120.00K	405.00K
	Financing Cash Flow
-4.04M	-18.87M	-2.56M	-30.15M	-50.68M

China Rongzhong Financial Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.24
• 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:3963, the sentiment is Neutral. The current price of 0.24 is above the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.24, and below the 200-day MA of 0.37, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.02 is Neutral, neither overbought nor oversold. The STOCH value of 75.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$149.40M	3.22	5.67%	7.22%	7.06%	-11.84%
Sector *	64 Neutral	$12.51B	9.81	7.92%	16985.69%	12.67%	-5.98%
1518	59 Neutral	HK$551.55M	10.63	8.82%	3.35%	-10.82%	-43.85%
1808	58 Neutral	HK$906.09M	10.97	25.16%	―	561.25%	639.47%
6068	53 Neutral	HK$262.14M	2.41	16.80%	45.45%	-41.24%	-36.17%
3963	45 Neutral	HK$147.45M	―		―	-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.