China Hongbao Holdings Limited (8316) AI Stock Analysis

• Market Cap: HK$158.26M
• Dividend Yield: N/A
• Average Volume (3M): 456.53K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.15
• Revenue Growth: 21.30%
• EPS Growth: -40.94%
• Country: HK
• Employees: 59
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 953,376,000
• 10 Day Avg. Volume: 371,600
• 30 Day Avg. Volume: 456,533
• PEG Ratio: -0.69
• Price to Book (P/B): -11.71
• Price to Sales (P/S): 2.22
• P/FCF Ratio: 6.90
• 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: 48 Neutral
• Price Target: HK$0.18 ▼(-2.78% Downside)

The overall stock score is primarily impacted by significant financial challenges, including persistent losses and high leverage. While technical indicators suggest bullish momentum, overbought conditions could limit upside potential. Valuation concerns due to negative earnings further weigh on the score.

Positive Factors

Gross Profit Margin Improvement

Improved gross profit margins suggest enhanced cost management, which can lead to better profitability if sustained, contributing to long-term financial health.

Positive Cash Flow

Positive cash flow indicates the company's ability to generate cash from operations, which is crucial for funding growth initiatives and reducing debt over time.

Revenue Model

A diversified revenue model with customized solutions can create stable income streams and foster client loyalty, supporting long-term growth.

Negative Factors

High Leverage

High leverage and negative equity suggest financial instability, which can limit the company's ability to invest in growth and weather economic downturns.

Persistent Losses

Ongoing losses and negative margins highlight operational inefficiencies, which can erode shareholder value and hinder long-term sustainability.

Revenue Decline

A decline in revenue growth suggests weakening demand or competitive pressures, which can impact market position and future earnings potential.

China Hongbao Holdings Limited Business Overview & Revenue Model

Company Description

Quantong Holdings Limited, an investment holding company, operates as a foundation subcontractor for private and public sectors in Hong Kong. It is involved in the rental of machinery and provision of services in supply and installation of new energy charging piles. The company was formerly known as Pak Wing Group (Holdings) Limited and changed its name to Quantong Holdings Limited in February 2021. Quantong Holdings Limited was incorporated in 2014 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

China Hongbao Holdings Limited generates revenue through multiple streams, primarily from the sale of its products in both physical retail locations and online platforms. The company's revenue model is heavily reliant on e-commerce, where it sells traditional and festive goods, often capitalizing on seasonal demand. Key revenue streams include direct sales to consumers, bulk orders from retailers, and partnerships with e-commerce platforms that facilitate wider distribution. Additionally, the company may engage in collaborations with local artisans and manufacturers to expand its product offerings and enhance its market reach, thereby contributing to its overall earnings.

China Hongbao Holdings Limited Financial Statement Overview

Summary

China Hongbao Holdings Limited faces significant financial challenges, with persistent losses and high leverage. Improvements in gross profit margin and cash flow are overshadowed by negative equity and profitability metrics, indicating a need for strategic changes.

Income Statement

The company shows a slight revenue growth of 3.9% in the latest year, but profitability remains a concern with negative net profit and EBIT margins. The gross profit margin improved to 28.47%, indicating better cost management. However, consistent net losses and negative EBIT and EBITDA margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -1.19. Despite a high return on equity of 63.57%, the negative equity and high leverage pose significant financial risks. The equity ratio is negative, indicating more liabilities than assets.

Cash Flow

The company has improved its cash flow position with positive operating and free cash flows in the latest year. However, the free cash flow growth rate is negative, and the operating cash flow to net income ratio is low at 0.35, suggesting cash flow generation is still weak relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.87M	80.85M	97.56M	101.39M	76.89M	104.60M
Gross Profit	28.81M	23.02M	21.00M	14.85M	2.98M	-15.81M
EBITDA	-16.39M	-5.36M	-712.00K	-15.12M	-7.32M	-22.66M
Net Income	-22.39M	-9.75M	-7.48M	-19.04M	-10.42M	-29.45M
Balance Sheet
Total Assets	93.96M	58.85M	23.37M	105.72M	64.19M	24.11M
Cash, Cash Equivalents and Short-Term Investments	31.11M	36.77M	1.23M	20.57M	2.21M	1.19M
Total Debt	17.42M	18.26M	35.54M	41.93M	39.12M	37.77M
Total Liabilities	124.07M	74.19M	54.52M	163.21M	116.03M	68.25M
Stockholders Equity	-30.11M	-15.33M	-31.15M	-57.49M	-51.84M	-44.14M
Cash Flow
Free Cash Flow	23.61M	26.04M	-21.75M	-17.10M	-26.31M	-16.25M
Operating Cash Flow	23.63M	26.05M	-21.45M	-11.23M	-26.31M	-16.23M
Investing Cash Flow	-17.00K	66.00K	-299.00K	-5.47M	5.57M	2.52M
Financing Cash Flow	5.21M	9.73M	1.66M	35.66M	21.75M	343.00K

China Hongbao Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 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:8316, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.17, and below the 200-day MA of 0.18, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 59.74 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8316.

China Hongbao Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1420	74 Outperform	HK$224.89M	3.20	11.37%	―	20.41%	188.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2017	60 Neutral	HK$182.46M	6.22	2.70%	―	-27.58%	-18.28%
1870	59 Neutral	HK$439.29M	-13.32	-18.78%	―	-8.26%	-240.93%
1757	54 Neutral	HK$756.00M	700.00	1.30%	―	78.48%	-33.33%
1459	49 Neutral	HK$141.34M	-11.94	-0.68%	8.03%	-33.92%	-94.74%
8316	48 Neutral	HK$158.26M	-15.37	―	―	21.30%	-40.94%