Changhong Jiahua Holdings Ltd. (3991) AI Stock Analysis

• Market Cap: HK$2.36B
• Dividend Yield: 5.43%
• Average Volume (3M): 943.39K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.24
• Revenue Growth: 6.01%
• EPS Growth: 9.76%
• Country: HK
• Employees: 1,423
• Sector: Technology
• Sector Strength: 85
• Industry: Technology Distributors
• EPS (TTM): 0.07
• Shares Outstanding: 1,454,652,000
• 10 Day Avg. Volume: 1,017,400
• 30 Day Avg. Volume: 943,391
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 8.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: HK$1.00 ▲(8.70% Upside)

Changhong Jiahua Holdings Ltd. receives a score of 70, driven by its stable financial performance and attractive valuation. The low P/E ratio and high dividend yield are significant positives, suggesting potential undervaluation and income opportunities. However, technical indicators show neutral sentiment, and operational efficiency and cash flow generation require improvement.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, which is crucial for long-term business sustainability.

Profitability Improvement

Improved profitability metrics suggest effective cost management and pricing strategies, enhancing the company's financial health over time.

Effective Use of Equity

A strong return on equity indicates efficient capital allocation and management's ability to generate returns for shareholders.

Negative Factors

Operational Efficiency

Low EBIT margin highlights potential inefficiencies in operations, which could limit profitability and competitiveness if not addressed.

Cash Flow Challenges

Challenges in generating operational cash flow can strain liquidity and limit the company's ability to invest in growth opportunities.

Leverage Concerns

Moderate leverage could pose risks if not managed carefully, potentially affecting financial flexibility and increasing vulnerability to economic downturns.

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	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: 0.92
• 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 0.92 is below the 20-day moving average (MA) of 0.93, above the 50-day MA of 0.90, and above the 200-day MA of 0.72, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.12 is Neutral, neither overbought nor oversold. The STOCH value of 51.96 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
3991	70 Outperform	HK$2.36B	5.58	13.40%	5.43%	6.01%	9.76%
Sector *	61 Neutral	$36.69B	12.42	-10.20%	1.85%	8.50%	-7.32%
7C3	―	€477.62M	16.87	5.41%	―	―	―
2166	72 Outperform	HK$948.04M	7.38	11.96%	6.74%	-5.58%	22.50%
1184	69 Neutral	HK$2.82B	6.48	14.95%	8.89%	-0.06%	-6.11%
0595	58 Neutral	HK$358.92M	6.68	3.12%	5.00%	20.90%	-50.79%
6036	53 Neutral	HK$494.55M	33.09	5.12%	―	14.50%	247.50%

Changhong Jiahua Holdings Ltd. Corporate Events

Changhong Jiahua Announces Trading Halt Amid Inside Information Disclosure

Changhong Jiahua Holdings Limited has announced a trading halt on the Hong Kong Stock Exchange, effective from September 12, 2025. This suspension is due to an impending announcement related to the Hong Kong Code on Takeovers and Mergers, which contains inside information about the company. The halt indicates a significant development that could impact the company’s operations and market positioning.

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 Wins Appeal in Sales Contract Dispute

Changhong Jiahua Holdings Limited announced a legal update regarding its litigation with Suning Procurement Center over a sales contract dispute. The Higher People’s Court of Jiangsu Province dismissed Suning’s appeal, affirming the original judgment, and imposed a case acceptance fee on Suning. The company is currently unable to determine the litigation’s impact on its financials but is committed to protecting its rights and interests.

The most recent analyst rating on (HK:3991) stock is a Buy 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 Reports Strong Interim Results for 2025

Changhong Jiahua Holdings Limited reported its unaudited interim results for the six months ended June 30, 2025, showing a revenue increase to HK$21.17 billion from HK$19.29 billion in the previous year. The company’s profit before tax rose to HK$216.69 million, with a total comprehensive income of HK$241.06 million, indicating a positive financial performance and potential growth in its market positioning.

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.