Changjiu Holdings Limited (6959) AI Stock Analysis

• Market Cap: HK$1.16B
• Dividend Yield: 10.95%
• Average Volume (3M): 29.36K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.46
• Revenue Growth: 54.28%
• EPS Growth: 37.14%
• Country: HK
• Employees: 460
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 202,160,000
• 10 Day Avg. Volume: 13,510
• 30 Day Avg. Volume: 29,360
• PEG Ratio: 0.26
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 8.11
• 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: 74 Outperform
• Price Target: HK$7.00 ▲(9.37% Upside)

The overall stock score is primarily driven by strong financial performance and attractive valuation metrics. The company's robust balance sheet and high dividend yield are significant strengths, although cash flow volatility and neutral technical indicators present some risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective sales strategies, supporting long-term business sustainability.

Balance Sheet Health

A robust balance sheet with increased equity and reduced leverage enhances financial stability and reduces risk, supporting future growth.

Profit Margins

Stable profit margins reflect effective cost management and operational efficiency, contributing to sustainable profitability.

Negative Factors

Cash Flow Volatility

Volatile cash flow can hinder the company's ability to invest in growth opportunities and meet financial obligations, impacting resilience.

Net Profit Margin Decline

A decline in net profit margin may indicate rising costs or pricing pressure, potentially affecting long-term profitability.

Cash Conversion Issues

Challenges in converting income to cash can limit liquidity and flexibility, posing risks to financial health and operational capacity.

Changjiu Holdings Limited Business Overview & Revenue Model

Company Description

Changjiu Holdings Limited provides pledged vehicle monitoring and automobile dealership operation management services in China. It offers pledged vehicle monitoring system that consists of the VFS system and vehicle connect mobile application; and hardware, including the radio-frequency identification labels, personal digital assistants, on-board diagnostic devices, and lockboxes. The company also provides Smart Star, an operation management system for managing the daily operations of automobile dealerships comprising customer relationship management software-as-a-service and enterprise resource planning systems. It primarily serves financial institutions, such as commercial banks and automobile finance companies, as well as automobile dealerships. The company was formerly known as Changjiu Digital Technology Limited and changed its name to Changjiu Holdings Limited in September 2023. Changjiu Holdings Limited was founded in 2016 and is headquartered in Beijing, China. Changjiu Holdings Limited operates as a subsidiary of Advancey limited.

How the Company Makes Money

Changjiu Holdings Limited generates revenue primarily through the sale of its construction materials, particularly ready-mixed concrete and precast components. The company operates on a business model that focuses on large-scale construction projects, providing materials directly to contractors and construction firms. Key revenue streams include bulk contracts with construction companies as well as smaller orders from individual builders. The company may also benefit from strategic partnerships with construction firms and real estate developers, which can secure long-term contracts and consistent demand for its products. Additionally, the company's focus on quality and timely delivery can lead to enhanced customer loyalty and repeat business, contributing to its overall financial performance.

Changjiu Holdings Limited Financial Statement Overview

Summary

Changjiu Holdings Limited shows strong revenue and profit growth with a robust balance sheet, evidenced by increased stockholders' equity and reduced leverage. However, cash flow management is a concern due to significant fluctuations, impacting overall financial resilience.

Income Statement

Changjiu Holdings Limited demonstrates strong revenue growth with a consistent increase in total revenue over the years. The gross profit margin improved from 44.0% in 2020 to 44.0% in 2024, indicating stable profitability. The net profit margin increased from 28.0% in 2020 to 23.8% in 2024, which reflects strong cost management. EBIT and EBITDA margins are also healthy, showing operational efficiency.

Balance Sheet

The company's balance sheet is robust, with a significant increase in stockholders' equity from $39.3M in 2020 to $495.6M in 2024. The debt-to-equity ratio has significantly decreased, indicating reduced leverage and financial risk. The equity ratio improved, showing strong financial stability. Return on equity has also increased, underscoring effective use of equity capital.

Cash Flow

Cash flow analysis reveals variability. In 2023, the free cash flow was $70.8M, but it fell to zero in 2024, indicating potential volatility in cash generation. The operating cash flow to net income ratio is concerning, as it dropped to zero in 2024, highlighting issues in converting income to cash. The free cash flow to net income ratio also needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	677.63M	641.77M	637.10M	575.73M	483.85M
Gross Profit	302.68M	298.04M	282.69M	255.24M	215.65M	186.74M
EBITDA	192.80M	188.79M	129.50M	134.65M	101.13M	115.97M
Net Income	170.69M	161.41M	102.32M	95.88M	83.73M	114.11M
Balance Sheet
Total Assets	846.03M	627.89M	335.92M	293.22M	267.80M	240.29M
Cash, Cash Equivalents and Short-Term Investments	131.58M	399.65M	134.79M	119.34M	1.88M	105.52K
Total Debt	232.31M	11.00K	27.31M	81.42M	54.69M	50.62M
Total Liabilities	406.77M	132.32M	194.00M	279.61M	247.96M	201.00M
Stockholders Equity	439.26M	495.56M	156.25M	12.13M	16.21M	33.14M
Cash Flow
Free Cash Flow	117.08M	102.16M	70.84M	90.71M	133.67M	137.60M
Operating Cash Flow	117.49M	106.31M	75.35M	91.90M	135.01M	138.67M
Investing Cash Flow	-37.88M	-28.40M	3.73M	118.58M	-52.94M	-74.51M
Financing Cash Flow	-87.05M	157.20M	-64.10M	-82.81M	-60.35M	-67.98M

Changjiu Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.40
• 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:6959, the sentiment is Negative. The current price of 6.4 is above the 20-day moving average (MA) of 6.20, above the 50-day MA of 6.08, and above the 200-day MA of 6.35, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 36.13 is Neutral, neither overbought nor oversold. The STOCH value of 20.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6959.

Changjiu Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6959	74 Outperform	HK$1.16B	6.29	40.49%	10.95%	54.28%	37.14%
1675	71 Outperform	HK$8.35B	19.14	6.90%	3.47%	-17.90%	56.67%
1588	64 Neutral	HK$2.86B	32.83	8.51%	―	12.46%	―
1808	62 Neutral	HK$683.24M	6.18	27.53%	―	421.56%	328.43%
3738	62 Neutral	HK$12.88B	55.48	8.42%	―	22.86%	5105.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0909	43 Neutral	HK$6.46B	-94.97	-1.31%	3.10%	-17.48%	83.80%

Changjiu Holdings Limited Corporate Events

Changjiu Holdings Sets Formal Governance Framework for Nomination Committee

Changjiu Holdings Limited has formally adopted detailed terms of reference for its Nomination Committee, setting out its mandate to identify, screen and recommend candidates for the board of directors, oversee board performance evaluations and develop and monitor nomination guidelines. The framework strengthens corporate governance by requiring a committee of at least three members with a majority of independent non-executive directors, gender diversity in its composition, clear meeting procedures, quorum and voting rules, as well as structured reporting and minute-keeping processes, thereby enhancing transparency and board accountability for stakeholders.

The most recent analyst rating on (HK:6959) stock is a Buy with a HK$7.00 price target. To see the full list of analyst forecasts on Changjiu Holdings Limited stock, see the HK:6959 Stock Forecast page.

Changjiu Holdings Approves Key Dealership Management Agreement

Changjiu Holdings Limited held an extraordinary general meeting on November 27, 2025, where all proposed resolutions were approved. The key resolution involved the approval of the 2025 Automobile Dealership Operation Management Service Framework Agreement with Jilin Changjiu Industrial Group Co., Ltd., which includes significant annual cap amounts for the next three years, indicating a strategic focus on expanding its dealership operations.

The most recent analyst rating on (HK:6959) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on Changjiu Holdings Limited stock, see the HK:6959 Stock Forecast page.

Changjiu Holdings Updates on Property Lease and Service Agreement

Changjiu Holdings Limited announced a supplemental update regarding its connected transaction and continuing connected transaction under the Property Lease and Comprehensive Service Agreement. The rent and service fees are set at RMB5.95/sq.m./day, aligning with market conditions and comparable properties. The company anticipates an increase in staff numbers due to business expansion, impacting the proposed annual cap for staff canteen service fees. The directors believe this adjustment is fair and beneficial for the company and its shareholders.

The most recent analyst rating on (HK:6959) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on Changjiu Holdings Limited stock, see the HK:6959 Stock Forecast page.

Changjiu Holdings Announces EGM to Approve Key Agreement

Changjiu Holdings Limited has announced an extraordinary general meeting (EGM) scheduled for November 27, 2025, in Beijing, China. The meeting will consider and potentially approve the 2025 Automobile Dealership Operation Management Service Framework Agreement with Jilin Changjiu Industrial Group Co., Ltd., which outlines significant financial transactions and annual cap amounts for the years 2026 to 2028. This agreement is expected to impact the company’s operations by formalizing its business dealings with Changjiu Industrial, potentially enhancing its market position and operational efficiency.

The most recent analyst rating on (HK:6959) stock is a Hold with a HK$6.50 price target. To see the full list of analyst forecasts on Changjiu Holdings Limited stock, see the HK:6959 Stock Forecast page.

Changjiu Holdings Announces New Property Lease and Service Agreement

Changjiu Holdings Limited announced a Property Lease and Comprehensive Service Agreement with Shanghai Bozhong, Changjiu Jinfu, and Changjiu Interconnect, effective from January 1, 2025, to December 31, 2026. This agreement includes leasing office space and providing various services, with plans to outsource staff canteen services from 2026. The transaction was identified as a connected transaction under Hong Kong’s Listing Rules, but was not announced in a timely manner, leading to a breach of the rules, although it does not require independent shareholder approval.

The most recent analyst rating on (HK:6959) stock is a Buy with a HK$7.00 price target. To see the full list of analyst forecasts on Changjiu Holdings Limited stock, see the HK:6959 Stock Forecast page.

Changjiu Holdings Renews Key Dealership Management Agreement

Changjiu Holdings Limited has renewed its Automobile Dealership Operation Management Service Framework Agreement with Changjiu Industrial, extending the term for three years until December 31, 2028. This renewal involves continuing connected transactions that require shareholder approval and adherence to listing rules, impacting the company’s operational framework and stakeholder engagement.

The most recent analyst rating on (HK:6959) stock is a Buy with a HK$7.00 price target. To see the full list of analyst forecasts on Changjiu Holdings Limited stock, see the HK:6959 Stock Forecast page.