Changhong Jiahua Holdings Ltd. (3991) AI Stock Analysis

• Market Cap: HK$2.44B
• Dividend Yield: 5.21%
• Average Volume (3M): 562.72K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.32
• Revenue Growth: 6.01%
• EPS Growth: 9.76%
• Country: HK
• Employees: 1,423
• Sector: Technology
• Sector Strength: 91
• Industry: Technology Distributors
• EPS (TTM): 0.07
• Shares Outstanding: 1,454,652,000
• 10 Day Avg. Volume: 563,673
• 30 Day Avg. Volume: 562,724
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 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: HK$1.00
• Price Target Upside: 4.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: HK$1.00 ▲(4.17% Upside)

Changhong Jiahua Holdings Ltd. demonstrates strong technical analysis and attractive valuation metrics, making it appealing to investors. The financial performance is stable but could improve with better cash flow management. The absence of earnings call and corporate events data does not affect the score significantly.

Changhong Jiahua Holdings Ltd. Business Overview & Revenue Model

Company Description

Changhong Jiahua Holdings Ltd. (3991) is a Hong Kong-based company primarily engaged in the distribution of electronic products and provision of related services. The company operates through two main segments: Information Technology (IT) Consumer Products and IT Corporate Products. It offers a wide range of products, including personal computers, digital products, and software, catering to both individual consumers and corporate clients.

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, there is room for improvement in operational efficiency and cash flow management. 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	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: 0.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.96 is above the 20-day moving average (MA) of 0.91, above the 50-day MA of 0.88, and above the 200-day MA of 0.69, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 71.56 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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
3991	76 Outperform	HK$2.44B	6.17	13.40%	5.21%	6.01%	9.76%
0400	73 Outperform	€3.90B	16.02	4.79%	―	12.40%	-11.30%
2166	71 Outperform	HK$850.30M	8.13	10.77%	6.90%	-17.97%	46.24%
0595	71 Outperform	HK$372.55M	6.94	3.12%	7.50%	20.90%	-50.79%
1184	69 Neutral	HK$2.94B	5.87	18.22%	8.33%	24.08%	24.13%
6036	56 Neutral	HK$462.30M	69.05	2.38%	―	20.64%	―
Sector *	49 Neutral	C$3.36B	0.24	-4.93%	7.61%	9.15%	-16.14%

Changhong Jiahua Holdings Ltd. Corporate Events

Changhong Jiahua Holdings Schedules Board Meeting for Interim Results

Changhong Jiahua Holdings Limited has announced that its Board of Directors will meet on August 12, 2025, to review and approve the company’s unaudited interim results for the first half of the year ending June 30, 2025. The meeting will also consider the possibility of declaring an interim dividend, which could have implications for shareholders and market positioning.

Changhong Jiahua Faces Legal Appeal in Sales Contract Dispute

Changhong Jiahua Holdings Limited, a company incorporated in Bermuda, is currently involved in a legal dispute concerning a sales contract between its subsidiary, IT Digital Technology, and Suning Procurement Center. The Higher People’s Court of Jiangsu Province has accepted an appeal from Suning Procurement Center, challenging a previous judgment regarding financial liabilities. The litigation is in its second instance, and the final outcome remains uncertain. The company is committed to protecting its rights and interests through legal means and will update shareholders and investors on any significant developments.

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.