Shanxi Changcheng Microlight Equipment Co. Ltd. Class H (8286) AI Stock Analysis

• Market Cap: HK$35.52M
• Dividend Yield: N/A
• Average Volume (3M): 18.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: 21.29%
• EPS Growth: -91.90%
• Country: HK
• Employees: 295
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.01
• Shares Outstanding: 110,000,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 18,500
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.12
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 23.78
• 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$0.12 ▲(5.45% Upside)

The score is primarily held down by weak financial performance (declining revenue, persistent losses, and negative equity/high leverage). Technical indicators are mixed with only short-term strength and negative MACD, while valuation is constrained by loss-making status (negative P/E) and no dividend yield data.

Positive Factors

Diversified revenue channels

Multiple distribution channels (retail, e-commerce, partnerships and licensing) provide structural resilience versus single-channel firms. Over 2–6 months this mix supports revenue stabilization, broader market access, and smoother scaling of sales and inventory management.

Niche product specialization

Clear specialization in microlight outdoor gear gives the firm product expertise, design know‑how and potential brand loyalty. A focused niche reduces direct competition, supports differentiated offerings and durable customer relationships that can sustain margins and market share.

Improving free cash flow

Positive free cash flow, despite operating losses, improves near‑term liquidity and lowers reliance on external financing. This supports funding for working capital, targeted capex or product development over the coming months, giving management more strategic optionality.

Negative Factors

Sharp revenue decline

A steep drop in revenue erodes operating scale and raises unit costs, weakening margin recovery prospects. If demand or share issues persist, the company may face underutilized capacity and reduced bargaining power with suppliers, pressuring profitability over the medium term.

Persistent negative profitability

Sustained negative margins indicate structural operating inefficiencies or pricing pressures. Continued losses shrink retained capital and constrain reinvestment into product development or distribution, increasing the risk that operational deficits persist without a clear recovery plan.

Weak balance sheet and high leverage

Negative equity and high leverage create refinancing and solvency risks, limiting strategic flexibility. Over 2–6 months this raises the cost of capital, restricts borrowing capacity and heightens vulnerability to demand shocks or supplier financing pressure unless deleveraging occurs.

Shanxi Changcheng Microlight Equipment Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Shanxi Changcheng Microlight Equipment Co. Ltd. engages in the research, design, development, manufacture, and sale of image transmission fiber optic products in the People's Republic of China, Europe, Hong Kong, Russia, and the Middle East. The company's primary products include fiber optic inverters, fiber optic straight and face plates, fiber optic tapers, and microchannel plates. It is also involved in the design, research, development, manufacture, and sale of water purifiers, and optoelectronic and chemical glass products; and wholesale of household water purifiers. The company was incorporated in 2000 and is headquartered in Taiyuan, the People's Republic of China.

How the Company Makes Money

The company generates revenue through the sale of its microlight equipment to both retail and wholesale customers. Key revenue streams include direct sales to outdoor sports retailers, e-commerce platforms, and partnerships with outdoor adventure companies. Additionally, Shanxi Changcheng may earn income through licensing agreements for its product designs or technology. By continuously innovating and expanding its product line, the company capitalizes on the growing outdoor recreation market, further enhancing its profitability.

Shanxi Changcheng Microlight Equipment Co. Ltd. Class H Financial Statement Overview

Summary

Weak fundamentals: revenue declined sharply (26.7M to 17.1M), profitability is negative (negative net margin, EBIT and EBITDA margins), and the balance sheet shows negative equity with high leverage risk. Cash flow improved with positive free cash flow, but overall stability remains a concern.

Income Statement

The company has experienced a significant decline in revenue over the past year, with a revenue decrease from 26.7 million to 17.1 million. Gross profit margins have also decreased, indicating challenges in maintaining profitability. The net profit margin is negative, reflecting ongoing losses, and both EBIT and EBITDA margins are negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reveals high leverage, with a negative stockholders' equity indicating more liabilities than assets. The debt-to-equity ratio is not calculable due to negative equity, and the equity ratio is negative, suggesting financial instability. The company is heavily reliant on debt financing, which poses a risk.

Cash Flow

The cash flow statement shows some improvement in free cash flow, turning positive in the latest period. However, the operating cash flow to net income ratio is low due to negative net income, and the free cash flow to net income ratio is not favorable. While there is some positive cash flow from operations, overall cash flow stability remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.76M	17.14M	26.72M	15.54M	18.42M	8.06M
Gross Profit	5.86M	6.43M	12.38M	5.96M	3.32M	-662.00K
EBITDA	-28.99M	-18.48M	3.64M	20.11M	-14.66M	-11.97M
Net Income	-33.74M	-33.62M	-10.38M	7.21M	-40.39M	-27.91M
Balance Sheet
Total Assets	168.79M	162.87M	171.67M	150.65M	148.50M	173.75M
Cash, Cash Equivalents and Short-Term Investments	292.00K	292.00K	277.00K	405.00K	399.00K	1.22M
Total Debt	71.42M	70.77M	70.79M	68.60M	116.37M	90.09M
Total Liabilities	314.82M	304.80M	279.97M	248.57M	262.93M	247.72M
Stockholders Equity	-145.84M	-141.72M	-108.19M	-97.80M	-114.30M	-73.92M
Cash Flow
Free Cash Flow	486.00K	732.00K	-1.75M	-403.00K	502.00K	-2.11M
Operating Cash Flow	645.00K	891.00K	-1.25M	-362.00K	511.00K	20.86M
Investing Cash Flow	-183.00K	-231.00K	5.33M	283.00K	382.00K	-23.35M
Financing Cash Flow	5.00K	-645.00K	-4.21M	85.00K	-1.71M	3.56M

Shanxi Changcheng Microlight Equipment Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8286, the sentiment is Positive. The current price of 0.11 is above the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.12, and below the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.62 is Neutral, 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:8286.

Shanxi Changcheng Microlight Equipment Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8043	60 Neutral	HK$70.40M	20.23	5.29%	―	9.71%	―
8092	59 Neutral	HK$26.84M	12.61	11.90%	6.25%	11.36%	9.52%
0248	46 Neutral	HK$46.08M	-1.40	-14.69%	―	-43.22%	-34.69%
1087	45 Neutral	HK$225.87M	-5.77	-17.08%	―	-7.93%	45.04%
8286	44 Neutral	HK$35.52M	-0.97	―	―	21.29%	-91.90%
8245	37 Underperform	HK$20.35M	-1.20	-224.46%	―	-42.99%	-408.15%