China Hongguang Holdings Limited (8646) AI Stock Analysis

• Market Cap: HK$121.63M
• Dividend Yield: N/A
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 5.3
• Beta (1Y): -0.22
• Revenue Growth: 10.06%
• EPS Growth: -45.88%
• Country: HK
• Employees: 64
• Sector: Industrials
• Sector Strength: 83
• Industry: Construction
• EPS (TTM): 0.03
• Shares Outstanding: 458,990,000
• 10 Day Avg. Volume: 770,500
• 30 Day Avg. Volume: 2,752,533
• PEG Ratio: -0.18
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.44
• 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

• Rating: 66 Neutral
• Price Target: HK$0.50 ▲(92.31%Upside)

The overall stock score is influenced primarily by the company's strong financial performance and attractive valuation. Despite potential profitability challenges, the stock's low P/E ratio suggests it may be undervalued. Mixed technical signals indicate a neutral market sentiment, which tempers the overall score.

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 primarily through the sale of its glass products. The company supplies its products to construction companies, real estate developers, and automotive manufacturers. Revenue streams include the domestic sales within China and exports to international markets. The company may also engage in strategic partnerships with construction firms or automotive companies to enhance its market presence and sales. Additionally, its earnings can be influenced by factors such as construction industry demand, regulatory standards for safety glass, and fluctuations in raw material costs.

China Hongguang Holdings Limited Financial Statement Overview

Summary

Strong revenue growth and robust equity base indicate operational stability. However, declining net profit margins and ROE highlight potential profitability challenges, while cash flow improvements suggest 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
242.20M	217.14M	208.66M	203.07M	156.90M
	Gross Profit
63.12M	63.76M	65.17M	57.50M	43.01M
	EBIT
27.75M	43.95M	43.79M	46.66M	15.52M
	EBITDA
37.42M	53.73M	53.44M	54.40M	23.31M
	Net Income Common Stockholders
21.14M	35.73M	34.56M	39.00M	10.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
61.99M	89.52M	13.27M	12.93M	2.00M
	Total Assets
468.69M	439.01M	407.38M	323.96M	239.46M
	Total Debt
72.57M	79.29M	81.24M	53.19M	44.00M
	Net Debt
70.04M	78.13M	67.97M	40.26M	42.00M
	Total Liabilities
126.90M	121.10M	138.07M	123.38M	77.74M
	Stockholders Equity
341.79M	317.92M	269.32M	200.58M	161.72M
Cash Flow		Free Cash Flow
12.21M	-16.36M	-57.87M	4.80M	-43.25M
	Operating Cash Flow
12.21M	-10.11M	-56.97M	15.11M	-33.29M
	Investing Cash Flow
2.00K	-6.24M	-890.00K	-10.30M	-9.95M
	Financing Cash Flow
-10.85M	4.25M	58.20M	6.12M	38.70M

China Hongguang Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 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 0.26 is below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.26, and below the 200-day MA of 0.31, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.11 is Neutral, neither overbought nor oversold. The STOCH value of 28.79 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
Sector *	66 Neutral	$4.46B	12.15	5.40%	4.71%	4.16%	-11.97%
8646	66 Neutral	HK$121.63M	5.31	6.42%	―	10.06%	-45.88%
MAWHF		$2.05B	7.12	16.66%	7.94%	―	―
3316	71 Outperform	HK$6.91B	11.66	36.29%	10.26%	25.93%	8.97%
6828	51 Neutral	HK$932.18M	11.62	6.29%	―	-21.48%	-7.50%
1871	44 Neutral	HK$118.80M	―	-4.45%	―	-20.91%	3.67%
2127	41 Neutral	HK$76.58M	―	-38.40%	―	-72.73%	-764.81%