China Hongguang Holdings Limited (8646) AI Stock Analysis

• Market Cap: HK$167.32M
• Dividend Yield: N/A
• Average Volume (3M): 118.80K
• Price to Earnings (P/E): 2.5
• Beta (1Y): -0.27
• Revenue Growth: 5.34%
• EPS Growth: 43.91%
• Country: HK
• Employees: 64
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.07
• Shares Outstanding: 708,990,000
• 10 Day Avg. Volume: 144,000
• 30 Day Avg. Volume: 118,800
• PEG Ratio: -0.16
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 12.00
• 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: HK$0.50
• Price Target Upside: 108.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: HK$0.50 ▲(108.33% Upside)

The overall stock score of 66 reflects strong financial performance with revenue growth and a solid equity base. However, profitability challenges and neutral technical indicators moderate the score. The stock's undervaluation based on its P/E ratio is a positive factor, but the lack of earnings call data and corporate events limits additional insights.

China Hongguang Holdings Limited Business Overview & Revenue Model

Company Description

China Hongguang Holdings Limited, an investment holding company, manufactures and sells architectural glass products in the People's Republic of China. It offers safety glass products, which includes coated, insulating, laminated, and tempered glass, as well as smart glass product, such as dimming glass under the Hongguang brand. The company was founded in 1992 and is headquartered in Jieyang, the People's Republic of China.

How the Company Makes Money

China Hongguang Holdings Limited generates revenue through the sale of its diverse glass product offerings. The company's revenue streams primarily include direct sales to construction companies, distributors, and retailers who utilize these glass products in building and renovation projects. Additionally, the company may engage in partnerships with real estate developers and architects to secure large-scale contracts. The demand for energy-efficient and safety glass in modern construction projects significantly contributes to their earnings, along with potential collaborations and projects in both domestic and international markets.

China Hongguang Holdings Limited Financial Statement Overview

Summary

China Hongguang Holdings Limited shows strong revenue growth and a robust equity base, indicating operational stability. However, declining net profit margins and ROE suggest potential profitability challenges, while cash flow improvements highlight effective operational adjustments.

Income Statement

The company shows a pattern of revenue growth with a 11.55% increase from 2023 to 2024. Gross profit margins remain stable around 26%, indicating consistent cost control in operations. However, net profit margin decreased from 16.45% in 2023 to 8.73% in 2024, reflecting higher operational costs or other expenses. EBIT and EBITDA margins are strong, although EBIT has decreased from the previous year, which may warrant attention.

Balance Sheet

The company's debt-to-equity ratio improved slightly from 0.25 in 2023 to 0.21 in 2024, suggesting a stable leverage position. Return on Equity (ROE) has declined from 11.24% in 2023 to 6.19% in 2024, indicating reduced profitability for shareholders. However, the equity ratio remains strong at 72.92% in 2024, reflecting a solid capital structure with a high proportion of assets financed by equity.

Cash Flow

The company has shown a positive turnaround in operating cash flow from a negative -10.11 million in 2023 to a positive 12.21 million in 2024, indicating improved cash generation. Free cash flow is also positive, suggesting good cash management. However, the operating cash flow to net income ratio is low at 0.58, which may indicate less cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	231.59M	242.20M	217.14M	208.66M	203.07M	156.90M
Gross Profit	65.77M	63.12M	63.76M	65.17M	57.50M	43.01M
EBITDA	57.38M	37.42M	53.73M	53.44M	54.40M	23.31M
Net Income	40.78M	21.14M	35.73M	34.56M	39.00M	10.30M
Balance Sheet
Total Assets	532.35M	468.69M	439.01M	407.38M	323.96M	239.46M
Cash, Cash Equivalents and Short-Term Investments	149.36M	61.99M	89.52M	68.15M	12.93M	2.00M
Total Debt	52.51M	72.57M	79.29M	81.24M	53.19M	44.00M
Total Liabilities	162.25M	126.90M	121.10M	138.07M	123.38M	77.74M
Stockholders Equity	370.10M	341.79M	317.92M	269.32M	200.58M	161.72M
Cash Flow
Free Cash Flow	-33.94M	12.21M	-16.36M	-57.87M	4.80M	-43.25M
Operating Cash Flow	-33.94M	12.21M	-10.11M	-56.97M	15.11M	-33.29M
Investing Cash Flow	1.00K	2.00K	-6.24M	-890.00K	-10.30M	-9.95M
Financing Cash Flow	32.50M	-10.85M	4.25M	58.20M	6.12M	38.70M

China Hongguang Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.24
• 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:8646, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.25, and below the 200-day MA of 0.27, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.02 is Neutral, neither overbought nor oversold. The STOCH value of 37.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8646.

China Hongguang Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8646	66 Neutral	HK$167.32M	2.47	11.61%	―	5.34%	43.91%
9938	66 Neutral	HK$114.00M	6.79	8.46%	―	102.21%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1897	59 Neutral	HK$190.93M	21.17	1.73%	2.77%	-31.70%	-19.86%
1937	59 Neutral	HK$231.00M	115.50	0.58%	―	-10.27%	-84.38%
3313	39 Underperform	HK$175.39M	―	-46.79%	―	0.26%	69.65%
1592	39 Underperform	HK$57.91M	―	-102.44%	―	1.43%	-83.96%