China Youzan (8083) AI Stock Analysis

• Market Cap: $5.84B
• Dividend Yield: N/A
• Average Volume (3M): 241.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.14
• Revenue Growth: 3.97%
• EPS Growth: -211.11%
• Country: HK
• Employees: 1,489
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): <0.01
• Shares Outstanding: 32,978,310,000
• 10 Day Avg. Volume: 435,790,135
• 30 Day Avg. Volume: 241,572,256
• PEG Ratio: 0.01
• Price to Book (P/B): 3.79
• Price to Sales (P/S): 2.66
• P/FCF Ratio: 57.59
• Enterprise Value/Market Cap: -0.20
• Enterprise Value/Revenue: -0.72
• Enterprise Value/Gross Profit: -1.08
• Enterprise Value/Ebitda: 13.73
• 1Y Price Target: $0.16
• Price Target Upside: -13.65% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 53 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

China Youzan's stock score is primarily impacted by its financial performance, with significant profitability challenges and a pressured balance sheet. Technical analysis indicates strong momentum, but overbought conditions suggest caution. Valuation remains a concern due to negative earnings and lack of dividends, further weighing down the overall score.

China Youzan Business Overview & Revenue Model

Company Description

China Youzan Limited, an investment holding company, provides online and offline e-commerce solutions in the People's Republic of China, Japan, and Canada. The company operates through five segments: General Trading, Third Party Payment Services, Onecomm, Merchant Services, and Others. It trades in watches and other good; sells integrated smart point of sales devices; and offers third party payment and related consultancy services, as well as third party payment management services. The company also offers an e-commerce platform with a variety of Software as a Service products and comprehensive services. In addition, it provides information system maintenance and development services; catering services; management services; wholesale and retail internet information services; restaurant management and retail solutions; and factoring and guarantee services, as well as operation services for merchants and retail solutions for beauty industries. The company was formerly known as China Innovationpay Group Limited and changed its name to China Youzan Limited in May 2018. China Youzan Limited was incorporated in 1999 and is based in Wanchai, Hong Kong.

How the Company Makes Money

China Youzan generates revenue primarily through its SaaS offerings, which require merchants to pay subscription fees for using its platform and services. The company provides different tiers of subscription plans, allowing merchants to choose packages based on the features and support they need. In addition to subscription fees, Youzan earns money from transaction-based fees, where a percentage is charged on sales processed through its payment solutions. The company also partners with third-party service providers to offer additional tools and integrations, earning a share of the revenue from these partnerships. Furthermore, Youzan's revenue is bolstered by the ongoing expansion of its client base, driven by the increasing demand for digital transformation in retail and the growing e-commerce market in China.

China Youzan Financial Statement Overview

Summary

China Youzan is facing profitability challenges with negative EBIT and net margins, alongside a revenue decline. The balance sheet is moderately stable but pressured, with a manageable debt-to-equity ratio. Cash flow shows positive free cash flow, indicating some operational efficiency, but net losses distort the free cash flow to net income ratio.

Income Statement

China Youzan's income statement reveals challenges with profitability, as indicated by negative EBIT and net margins. The company experienced a revenue decline in the latest year, showing a negative growth trend from 2023 to 2024. Gross profit margin remains relatively strong, suggesting effective cost control at the gross level, but overall profitability is hindered by higher operational expenses.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio that is manageable, highlighting cautious leverage use. However, the equity ratio has decreased over the years, indicating a potential risk if liabilities continue to rise. Return on equity is negative due to net losses, impacting shareholder value negatively.

Cash Flow

Cash flow analysis indicates positive free cash flow in 2024, showing improvement from previous periods. Operating cash flow remains positive, suggesting operational efficiency, but the free cash flow to net income ratio is distorted by net losses, reflecting challenges in translating profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.59B	1.53B	1.59B	1.74B	1.93B	2.16B
Gross Profit	1.07B	1.05B	1.11B	961.92M	952.26M	1.08B
EBITDA	-84.08M	-176.31M	78.04M	-339.37M	-1.06B	-101.82M
Net Income	-94.25M	-187.94M	7.43M	-352.03M	-2.51B	-331.12M
Balance Sheet
Total Assets	6.66B	6.29B	5.94B	6.56B	6.87B	12.21B
Cash, Cash Equivalents and Short-Term Investments	1.03B	4.28B	3.64B	5.04B	883.10M	8.45B
Total Debt	447.69M	438.22M	551.17M	574.90M	335.73M	287.71M
Total Liabilities	5.41B	5.15B	4.83B	5.51B	5.54B	7.58B
Stockholders Equity	1.25B	1.08B	1.12B	1.41B	1.35B	3.86B
Cash Flow
Free Cash Flow	240.28M	70.94M	76.49M	-557.09M	-721.29M	120.19M
Operating Cash Flow	241.77M	58.05M	77.00M	-554.13M	-691.69M	144.43M
Investing Cash Flow	1.81M	466.22K	2.29M	28.82M	-320.75M	-74.15M
Financing Cash Flow	-144.81M	-105.43M	-51.14M	692.03M	-11.96M	1.03B

China Youzan Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.18
• 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:8083, the sentiment is Neutral. The current price of 0.18 is below the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.17, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.81 is Neutral, neither overbought nor oversold. The STOCH value of 28.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8083.

China Youzan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1588	65 Neutral	HK$2.86B	33.91	8.51%	―	12.46%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1675	60 Neutral	€8.20B	18.82	6.90%	2.78%	-17.90%	56.67%
8083	53 Neutral	$5.84B	―	-8.12%	―	3.97%	-211.11%
1782	47 Neutral	HK$3.05B	―	-37.61%	―	-16.86%	-7.51%
0909	43 Neutral	HK$5.72B	―	-1.31%	3.26%	-17.48%	83.80%
2013	42 Neutral	$8.20B	―	-55.81%	―	-34.07%	-29.27%