Huazhong In-Vehicle Holdings Company Limited (6830) AI Stock Analysis

• Market Cap: HK$442.30M
• Dividend Yield: 1.22%
• Average Volume (3M): 2.51M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.68
• Revenue Growth: 14.93%
• EPS Growth: 19.84%
• Country: HK
• Employees: 3,519
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.02
• Shares Outstanding: 1,769,193,800
• 10 Day Avg. Volume: 4,580,140
• 30 Day Avg. Volume: 2,512,146
• PEG Ratio: 1.02
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 8.04
• 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: 44 Neutral
• Price Target: HK$0.22 ▼(-15.00% Downside)

The score is held down primarily by weak financial performance (profitability pressure and lack of cash flow) and bearish technicals (trading below key moving averages with negative momentum). A relatively low P/E and modest dividend yield provide some valuation support but do not outweigh the operational and cash-flow risks.

Positive Factors

Revenue Growth Potential

The company has shown a strong revenue growth rate, indicating potential for expansion in the automotive electronics market.

Product Demand

Increasing demand for ADAS driven by safety regulations can provide a stable revenue stream and growth opportunities.

Industry Trends

The shift towards electric vehicles and smart transportation enhances demand for advanced in-vehicle technologies, benefiting the company.

Negative Factors

Cash Flow Challenges

Lack of cash flow generation may hinder the company's ability to fund operations and invest in growth, impacting long-term sustainability.

Declining Profitability

Declining profitability and negative EBIT margin indicate operational inefficiencies, which could affect future financial health.

High Financial Leverage

High financial leverage increases risk and limits financial flexibility, potentially impacting the company's ability to weather economic downturns.

Huazhong In-Vehicle Holdings Company Limited Business Overview & Revenue Model

Company Description

Huazhong In-Vehicle Holdings Company Limited, an investment holding company, manufactures and sells automobile body parts in Mainland China and internationally. It offers internal, external structural, and decorative automobile parts covering front/rear bumpers, frontend carriers, dashboards, ABCD-pillars, air inlet grilles, and rocker panels; automobile precision moulds and tooling products; air conditioning unit casings and liquid tanks; and other non-automobile products, such as top cowl covers for engine of motorboat and office chair parts. The company also designs, consults, manufactures, and sells plastic and automotive parts; imports and exports various products and technologies; processes and sells and process plastic and latex products, and spare and accessory parts; and develops in-vehicle systems and equipment. It serves automakers and automobile body parts manufacturers, as well as suppliers for automakers. The company was formerly known as Huazhong Holdings Company Limited and changed its name to Huazhong In-Vehicle Holdings Company Limited in January 2015. The company was founded in 1993 and is headquartered in Xiangshan, China. Huazhong In-Vehicle Holdings Company Limited is a subsidiary of Huayou Holdings Company Limited.

How the Company Makes Money

Huazhong In-Vehicle Holdings generates revenue primarily through the sale of its in-vehicle electronic products to automotive manufacturers. The company's revenue model is anchored in direct sales of its systems and components, often structured as long-term contracts with major automotive clients. Key revenue streams include the sale of ADAS, which are increasingly in demand due to rising safety regulations and consumer preferences for enhanced vehicle features. Additionally, the company may benefit from partnerships with major automotive OEMs (original equipment manufacturers) that require customized solutions, creating opportunities for joint development projects. The growth in electric vehicles and smart transportation solutions further contributes to Huazhong's earnings potential, as the demand for cutting-edge in-vehicle technologies continues to rise.

Huazhong In-Vehicle Holdings Company Limited Financial Statement Overview

Summary

Huazhong In-Vehicle Holdings faces operational and financial challenges, with declining revenue and profitability, coupled with weak cash flow generation. The balance sheet shows moderate leverage, but the lack of cash flow is a critical concern.

Income Statement

The company displays declining revenue with a slight contraction in the latest year. Gross profit margin remains stable, but the net profit margin is low, and there is a significant drop in EBIT, indicating operational challenges. The negative EBIT margin for the latest year is concerning.

Balance Sheet

The debt-to-equity ratio has improved slightly but remains relatively high, indicating financial leverage. Equity ratio shows moderate equity levels. The return on equity has decreased, reflecting lower profitability on shareholders' investments.

Cash Flow

The absence of free cash flow and operating cash flow in the latest year is a red flag. The company appears to be struggling with cash generation, which could impact its ability to fund operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.03B	1.85B	1.85B	1.92B	1.89B	2.00B
Gross Profit	541.55M	505.04M	500.92M	466.92M	426.90M	485.06M
EBITDA	145.46M	129.45M	211.22M	180.91M	130.49M	203.85M
Net Income	49.56M	41.91M	38.55M	108.30M	50.67M	107.57M
Balance Sheet
Total Assets	3.89B	3.78B	3.41B	3.25B	3.31B	3.25B
Cash, Cash Equivalents and Short-Term Investments	129.77M	181.14M	112.22M	114.84M	61.68M	94.43M
Total Debt	678.33M	614.21M	611.38M	606.56M	719.66M	721.65M
Total Liabilities	2.36B	2.22B	1.85B	1.82B	2.07B	2.06B
Stockholders Equity	1.40B	1.39B	1.39B	1.28B	1.18B	1.14B
Cash Flow
Free Cash Flow	13.51M	46.32M	-9.78M	98.43M	-11.82M	7.97M
Operating Cash Flow	225.13M	355.54M	190.91M	152.25M	148.63M	217.46M
Investing Cash Flow	-185.72M	-272.49M	-174.88M	13.63M	-113.59M	-146.15M
Financing Cash Flow	-37.98M	-33.84M	-19.28M	-113.22M	-67.80M	-165.13M

Huazhong In-Vehicle Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6830, the sentiment is Negative. The current price of 0.26 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.25, and above the 200-day MA of 0.26, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.61 is Neutral, neither overbought nor oversold. The STOCH value of 25.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6830.

Huazhong In-Vehicle Holdings Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0096	69 Neutral	HK$356.47M	3.65	9.50%	2.54%	4.51%	3.23%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1930	58 Neutral	HK$250.80M	13.62	4.80%	1.89%	3.40%	20.78%
1148	54 Neutral	HK$455.19M	12.96	1.91%	3.18%	9.51%	-21.71%
6830	44 Neutral	HK$442.30M	8.28	3.56%	1.22%	14.93%	19.84%
6162	44 Neutral	HK$600.00M	-1,475.00	-0.12%	―	23.71%	-112.50%
1991	37 Underperform	HK$149.65M	-2.11	-169.48%	―	-38.26%	35.05%

Huazhong In-Vehicle Holdings Company Limited Corporate Events

Huazhong In-Vehicle Forms RMB100 Million Partnership in Discloseable Deal

Huazhong In-Vehicle Holdings Company Limited has formed a limited partnership via its indirect wholly owned subsidiary Ningbo Huazhong, alongside Ningbo Yangming and Ningbo Gongyun as limited partners and Ningbo Xintao as general partner and manager. The partnership has a total committed capital of RMB100.01 million, with Ningbo Huazhong contributing RMB50 million, and the transaction qualifies as a discloseable transaction under Hong Kong listing rules, requiring public notification but no shareholder approval; the company also disclosed that, due to an inadvertent oversight, it failed to announce the partnership formation in a timely manner as required by the listing rules, underscoring its ongoing compliance obligations.

The most recent analyst rating on (HK:6830) stock is a Hold with a HK$0.24 price target. To see the full list of analyst forecasts on Huazhong In-Vehicle Holdings Company Limited stock, see the HK:6830 Stock Forecast page.