Changhong Jiahua Holdings Ltd. (3991) AI Stock Analysis

• Market Cap: HK$2.18B
• Dividend Yield: 5.88%
• Average Volume (3M): 423.83K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.30
• Revenue Growth: 7.58%
• EPS Growth: 5.20%
• Country: HK
• Employees: 1,423
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.15
• Shares Outstanding: 1,454,652,000
• 10 Day Avg. Volume: 337,800
• 30 Day Avg. Volume: 423,833
• PEG Ratio: 0.00
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.78
• 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: 69 Neutral
• Price Target: HK$1.00 ▲(17.65%Upside)

The overall score is driven mainly by the solid valuation metrics indicating undervaluation and a high dividend yield, suggesting strong investor returns. Financial performance shows stable growth with room for improvement, while technical analysis indicates potential short-term weakness but overall stability.

Changhong Jiahua Holdings Ltd. Business Overview & Revenue Model

Company Description

Changhong Jiahua Holdings Ltd. (3991) is a Hong Kong-based investment holding company primarily engaged in the distribution of information technology (IT) products and the provision of IT services. The company operates through two main segments: the IT Consumer Products segment, which focuses on the distribution of personal computers, digital products, and IT accessories, and the IT Corporate Products segment, which involves the distribution of enterprise IT products and the provision of related services. Changhong Jiahua Holdings Ltd. is part of the larger Changhong Group, a prominent player in the electronics and electrical appliances industry.

How the Company Makes Money

Changhong Jiahua Holdings Ltd. generates revenue primarily through the distribution and sale of IT products and the provision of IT services. The company's IT Consumer Products segment includes the sale of personal computers, digital products, and IT accessories to individual consumers and retail partners. The IT Corporate Products segment involves supplying enterprise IT products, such as servers, storage systems, and networking equipment, to corporate clients along with associated IT services. Revenue is also bolstered by strategic partnerships with well-known technology brands, allowing the company to offer a wide range of products and services to its clients. Additionally, the company's affiliation with the Changhong Group provides it with a competitive edge in sourcing and distribution, contributing to its overall profitability.

Changhong Jiahua Holdings Ltd. Financial Statement Overview

Summary

Changhong Jiahua Holdings Ltd. shows steady revenue growth and improved profitability with a gross profit margin of 3.46% and net profit margin of 0.95%. However, operational efficiency and cash flow management, evidenced by zero operating cash flow, need improvement.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.99B	37.17B	38.34B	44.56B	40.38B
Gross Profit	1.38B	1.30B	1.27B	1.32B	1.08B
EBITDA	624.13M	696.54M	713.72M	756.49M	575.46M
Net Income	379.27M	360.54M	365.82M	413.25M	345.40M
Balance Sheet
Total Assets	18.07B	17.41B	15.95B	12.47B	10.96B
Cash, Cash Equivalents and Short-Term Investments	736.00M	1.09B	355.69M	707.37M	369.59M
Total Debt	2.75B	1.80B	2.56B	1.19B	2.21B
Total Liabilities	15.09B	14.59B	13.32B	9.79B	8.65B
Stockholders Equity	2.98B	2.81B	2.63B	2.68B	2.31B
Cash Flow
Free Cash Flow	-3.31B	-2.94B	-2.12B	452.99M	-3.11B
Operating Cash Flow	-3.29B	-2.93B	-2.12B	461.88M	-3.11B
Investing Cash Flow	-638.00M	180.56M	-2.82B	334.12M	-1.69B
Financing Cash Flow	3.43B	3.49B	4.65B	-476.74M	4.43B

Changhong Jiahua Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3991, the sentiment is Positive. The current price of 0.85 is below the 20-day moving average (MA) of 0.86, above the 50-day MA of 0.80, and above the 200-day MA of 0.63, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.27 is Neutral, neither overbought nor oversold. The STOCH value of 67.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
0595	71 Outperform	HK$354.38M	2.65	7.93%	10.26%	77.75%	295.97%
1184	69 Neutral	HK$2.55B	5.08	18.22%	6.14%	24.08%	24.13%
3991	69 Neutral	HK$2.18B	5.76	13.10%	5.88%	7.58%	5.20%
2166	66 Neutral	HK$830.76M	7.94	10.77%	4.12%	-17.97%	46.24%
0400	64 Neutral	HK$2.32B	9.92	4.79%	―	12.40%	-11.30%
Sector *	56 Neutral	$3.16B	5.05	-5.68%	5.76%	8.05%	-41.83%
6036	48 Neutral	HK$451.55M	67.46	2.38%	―	20.64%	―

Changhong Jiahua Holdings Ltd. Corporate Events

Changhong Jiahua Secures Initial Legal Victory Against Suning Procurement

Changhong Jiahua Holdings Limited has received a favorable first-instance judgment in a litigation case against Suning Procurement Center. The court ordered Suning to pay a significant sum for products and associated losses. However, the final outcome and its impact on the company’s financials remain uncertain as the litigation is still ongoing. Changhong Jiahua is committed to protecting its rights and interests through legal measures and will keep stakeholders informed of any material developments.

Changhong Jiahua Holdings Passes All Resolutions at AGM

Changhong Jiahua Holdings Limited, a company incorporated in Bermuda, held its Annual General Meeting (AGM) on May 23, 2025, where all proposed resolutions were passed unanimously. The resolutions included the adoption of audited financial statements, the declaration of a final dividend, the re-election of directors, the re-appointment of auditors, and the granting of general mandates to issue and repurchase shares. The AGM saw full participation with no abstentions or votes against any resolutions, indicating strong shareholder support and confidence in the company’s governance and strategic direction.

Changhong Jiahua Holdings Announces 2025 AGM and Key Resolutions

Changhong Jiahua Holdings Limited has announced its upcoming annual general meeting, scheduled for May 23, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the 2024 financial statements, the declaration of a final dividend, the re-election of directors, and the reappointment of auditors. Additionally, the company seeks approval to allot and issue new shares, with specific conditions outlined for the exercise of these powers. This meeting is significant for stakeholders as it involves decisions on financial distributions and governance, potentially impacting the company’s strategic direction and market operations.