Changhong Jiahua Holdings Ltd. (3991) AI Stock Analysis

• Market Cap: HK$2.85B
• Dividend Yield: 4.42%
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.26
• Revenue Growth: 6.01%
• EPS Growth: 9.76%
• Country: HK
• Employees: 1,423
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.07
• Shares Outstanding: 1,454,652,000
• 10 Day Avg. Volume: 967,619
• 30 Day Avg. Volume: 1,907,615
• PEG Ratio: 0.56
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.04
• P/FCF Ratio: -0.46
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: HK$1.00 ▼(-11.50% Downside)

The stock's overall score is driven by its attractive valuation and stable financial performance. However, technical indicators suggest caution due to overbought conditions. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective sales strategy, supporting long-term business expansion.

Profitability Improvement

Improved profitability metrics suggest effective cost management and pricing strategies, enhancing long-term financial health.

Effective Use of Equity

A strong return on equity indicates efficient capital use, boosting investor confidence and supporting sustainable growth.

Negative Factors

Operational Cash Flow Challenges

Zero operational cash flow highlights liquidity challenges, potentially impacting the company's ability to invest in growth and manage debt.

Low Equity Ratio

A low equity ratio suggests high financial leverage, which can increase risk and limit financial flexibility in adverse conditions.

Room for Operational Efficiency

Low EBIT margin indicates potential inefficiencies in operations, which could hinder profitability and competitive positioning.

Changhong Jiahua Holdings Ltd. Business Overview & Revenue Model

Company Description

Changhong Jiahua Holdings Limited, an investment holding company, distributes information and communication technology (ICT) consumer products, ICT corporate products, and other products in the People's Republic of China. The company's ICT Consumer Products segment distributes personal computers, digital products, and IT accessories. Its ICT Corporate Products segment distributes storage products, minicomputers, networking products, personal computer servers, intelligent building management system products, and unified communication and contact center products. The company's Others segment distributes smartphones; develops own brand products, such as intelligent terminals; sells warranty packages; and provides professional integrated ICT solutions and services. The company was formerly known as China Data Broadcasting Holdings Limited and changed its name to Changhong Jiahua Holdings Limited in January 2013. The company is headquartered in Central, Hong Kong. Changhong Jiahua Holdings Limited is a subsidiary of Sichuan Changhong Electronic Co., Limited.

How the Company Makes Money

Changhong Jiahua Holdings Ltd. generates revenue through the sale and distribution of electronic products and related services. Its revenue model is based on the procurement and distribution of IT consumer and corporate products, leveraging a broad network of suppliers and retailers. Key revenue streams include sales from the IT Consumer Products segment, which targets individual consumers with products like personal computers and digital devices, and the IT Corporate Products segment, which provides software and hardware solutions to businesses. The company also benefits from strategic partnerships with major technology brands, enhancing its product offerings and market reach. Additionally, after-sales services and support contribute to its earnings by providing value-added services to customers.

Changhong Jiahua Holdings Ltd. Financial Statement Overview

Summary

Changhong Jiahua Holdings Ltd. shows stable revenue growth and improved profitability metrics. However, operational efficiency and cash flow generation need improvement. The balance sheet indicates moderate leverage with effective use of equity to generate returns.

Income Statement

Changhong Jiahua Holdings Ltd. demonstrates a stable financial performance with improving revenue and profitability metrics. The gross profit margin for 2024 stands at 3.46%, indicating efficient cost management. The net profit margin improved to 0.95%, reflecting stronger profitability. Revenue growth rate is at 7.57%, showing a positive growth trajectory, though the EBIT margin of 1.56% suggests room for operational efficiency improvements.

Balance Sheet

The company's balance sheet shows a moderate level of leverage with a debt-to-equity ratio of 0.92. The equity ratio of 16.49% is low, indicating reliance on liabilities for financing. However, the return on equity is solid at 12.73%, showcasing effective use of equity to generate profits.

Cash Flow

Cash flow analysis highlights challenges in operational cash generation, with operating cash flow at zero for 2024. The company faces issues with free cash flow generation, but the lack of data for recent free cash flow growth rate analysis limits insights.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.87B	39.99B	37.17B	38.34B	44.56B	40.38B
Gross Profit	1.39B	1.38B	1.30B	1.27B	1.32B	1.08B
EBITDA	609.72M	624.13M	696.54M	670.55M	698.11M	575.46M
Net Income	395.97M	379.27M	360.54M	365.82M	413.25M	345.40M
Balance Sheet
Total Assets	14.18B	18.07B	17.41B	15.95B	12.47B	10.96B
Cash, Cash Equivalents and Short-Term Investments	1.54B	561.78M	6.13B	415.54M	3.39B	369.59M
Total Debt	2.77B	2.75B	1.80B	2.56B	1.19B	2.21B
Total Liabilities	11.09B	15.09B	14.59B	13.32B	9.79B	8.65B
Stockholders Equity	3.09B	2.98B	2.81B	2.63B	2.68B	2.31B
Cash Flow
Free Cash Flow	-1.29B	-3.31B	-2.94B	-2.12B	452.99M	-3.11B
Operating Cash Flow	-1.29B	-3.29B	-2.93B	-2.12B	461.88M	-3.11B
Investing Cash Flow	-114.86M	-638.00M	180.56M	-2.82B	334.12M	-1.69B
Financing Cash Flow	-31.07M	3.43B	3.49B	4.65B	-476.74M	3.57B

Changhong Jiahua Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.13
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3991, the sentiment is Neutral. The current price of 1.13 is above the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.13, and above the 200-day MA of 0.94, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.86 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3991.

Changhong Jiahua Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1184	76 Outperform	HK$2.77B	6.37	14.95%	8.89%	-0.06%	-6.11%
2166	74 Outperform	HK$1.30B	11.07	11.96%	6.74%	-5.58%	22.50%
3991	65 Neutral	HK$2.85B	7.21	13.40%	4.42%	6.01%	9.76%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0400	60 Neutral	HK$6.19B	24.95	5.41%	―	33.59%	-15.98%
0595	58 Neutral	HK$358.92M	5.99	3.38%	4.94%	17.39%	-55.26%
6036	53 Neutral	HK$446.17M	29.86	5.11%	―	14.50%	247.50%

Changhong Jiahua Holdings Ltd. Corporate Events

Changhong Jiahua Clears Key Regulatory Hurdle in Hong Kong Privatisation Bid

Changhong Jiahua Holdings Limited and its controlling shareholder Hongtu Investment Co., Limited have announced that a key regulatory pre-condition has been fulfilled for the proposed privatisation of Changhong Jiahua by way of a scheme of arrangement and the subsequent withdrawal of its listing in Hong Kong. Approval has now been obtained from Mianyang City SASAC, one of four non-waivable outbound investment approvals required, while filings with the Sichuan Provincial Development and Reform Commission, the Sichuan Provincial Department of Commerce and the State Administration of Foreign Exchange remain pending. The parties emphasised that the privatisation and delisting remain uncertain until all remaining pre-conditions and scheme conditions are satisfied, and advised shareholders and potential investors to exercise caution when trading the company’s shares as they continue to work towards completing the regulatory process.

The most recent analyst rating on (HK:3991) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Changhong Jiahua Holdings Ltd. stock, see the HK:3991 Stock Forecast page.

Changhong Jiahua Extends Partnership’s Operational Term After Entering Liquidation Period

Changhong Jiahua Holdings Limited has announced that a partnership in which its subsidiary Changhong IT Digital participates has formally entered its liquidation period, as both the duration and original operational term of the partnership expired on 18 October 2025 and cannot be further extended under its initial ten‑year limit. To preserve the value of the investment and avoid disruption to the partnership’s activities, the parties signed a 2025 amendment to the Partnership Agreement on 19 December 2025, extending the operational term to eleven years from establishment while keeping all other terms unchanged. The board considers this extension important for maintaining stable operations, maximizing investment returns from the partnership and safeguarding the interests of both the partners and the company’s shareholders, and it has disclosed the change under Hong Kong Listing Rules because it represents a material modification to previously announced connected transaction terms.

The most recent analyst rating on (HK:3991) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Changhong Jiahua Holdings Ltd. stock, see the HK:3991 Stock Forecast page.

Changhong Jiahua Holdings Announces Privatization Proposal Amid Regulatory Hurdles

Changhong Jiahua Holdings Limited, in collaboration with Hongtu Investment Co., Limited, has announced a pre-conditional proposal for its privatization through a scheme of arrangement. The proposal’s implementation is contingent upon meeting several regulatory pre-conditions, including approvals from various Chinese authorities. As of now, these pre-conditions remain unmet, and stakeholders are advised to exercise caution as the proposal’s success is uncertain.

The most recent analyst rating on (HK:3991) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Changhong Jiahua Holdings Ltd. stock, see the HK:3991 Stock Forecast page.

Changhong Jiahua Announces Privatization Proposal and Listing Withdrawal

Changhong Jiahua Holdings Ltd. has announced a pre-conditional proposal for its privatization through a scheme of arrangement, alongside a proposed withdrawal of its listing. The company is working on fulfilling necessary pre-conditions, including obtaining approvals from various Chinese regulatory bodies. The scheme document’s dispatch has been extended, pending the satisfaction of these pre-conditions, potentially impacting the company’s market presence and stakeholder interests.

The most recent analyst rating on (HK:3991) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Changhong Jiahua Holdings Ltd. stock, see the HK:3991 Stock Forecast page.

Changhong Jiahua Announces Delay in Privatization Scheme Document Dispatch

Changhong Jiahua Holdings Ltd. has announced a delay in the dispatch of its scheme document related to a pre-conditional proposal for its privatization by Hongtu Investment Co., Limited. The delay is due to the non-fulfillment of certain pre-conditions, for which an extension has been sought and is likely to be granted. The company is actively working towards meeting these pre-conditions, with the involvement of Somerley Capital Limited as the Independent Financial Adviser. The outcome of this proposal could significantly impact the company’s operational structure and market presence, pending the fulfillment of all necessary conditions.

The most recent analyst rating on (HK:3991) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Changhong Jiahua Holdings Ltd. stock, see the HK:3991 Stock Forecast page.