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

• Market Cap: HK$48.49M
• Dividend Yield: N/A
• Average Volume (3M): 18.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$0.14 ▼(-9.33% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues, persistent losses, and high leverage. Technical analysis suggests a neutral to slightly bearish trend, while valuation metrics highlight ongoing profitability issues. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Revenue Diversification

Shanxi Changcheng's diverse client base across education, research, and industry sectors provides a stable revenue foundation, reducing dependency on any single market and enhancing resilience against sector-specific downturns.

Export Sales Contribution

Significant export sales indicate a strong international presence, which can buffer against domestic market fluctuations and provide growth opportunities in global markets.

Technological Integration

A focus on technological integration and innovative design positions Shanxi Changcheng as a competitive player in the optical instruments market, potentially leading to improved product offerings and market share.

Negative Factors

High Leverage

High leverage and negative equity highlight financial instability, which can limit the company's ability to invest in growth opportunities and increase vulnerability to economic downturns.

Declining Revenue

A significant decline in revenue suggests challenges in maintaining market position and competitiveness, potentially impacting long-term growth and profitability.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and ongoing losses, which can hinder the company's ability to reinvest in its business and sustain long-term growth.

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

Company Description

Shanxi Changcheng Microlight Equipment Co. Ltd. is a leading manufacturer specializing in the production of microlight equipment and related products. The company operates primarily in the outdoor and recreational equipment sector, offering a range of lightweight and portable gear designed for activities such as camping, hiking, and other outdoor adventures. Its core products include microlight tents, sleeping bags, and other accessories aimed at enhancing the outdoor experience for enthusiasts and professionals alike.

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

The company faces significant financial challenges, with declining revenues and persistent losses impacting profitability. The balance sheet highlights high leverage and negative equity, raising concerns about financial stability. While there is some improvement in cash flow, the overall financial position is weak, requiring strategic measures to improve operational efficiency and financial health.

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: 0.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.15 is above the 20-day moving average (MA) of 0.15, above the 50-day MA of 0.14, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.73 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, 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$72.40M	20.80	5.29%	―	9.71%	―
8092	59 Neutral	HK$27.77M	13.04	11.90%	6.45%	11.36%	9.52%
0248	50 Neutral	HK$52.30M	-1.59	-14.69%	―	-43.22%	-34.69%
1087	45 Neutral	HK$277.84M	-6.91	-17.08%	―	-7.93%	45.04%
8286	44 Neutral	HK$48.49M	-1.33	―	―	21.29%	-91.90%
8245	37 Underperform	HK$45.42M	-2.59	-224.46%	―	-42.99%	-408.15%