Central China New Life Ltd. (9983) AI Stock Analysis

• Market Cap: HK$688.62M
• Dividend Yield: 18.38%
• Average Volume (3M): 433.23K
• Price to Earnings (P/E): 2.9
• Beta (1Y): 0.69
• Revenue Growth: -2.61%
• EPS Growth: N/A
• Country: HK
• Employees: 5,699
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.09
• Shares Outstanding: 1,299,276,000
• 10 Day Avg. Volume: 384,600
• 30 Day Avg. Volume: 433,229
• PEG Ratio: -0.05
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -324.26
• 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: 66 Neutral
• Price Target: HK$0.58 ▼(-2.83% Downside)

The score is driven primarily by recovering profitability and a low-leverage balance sheet, but is held back by the absence of operating/free cash flow and weak technical trend signals. Valuation is a significant positive due to the very low P/E and high dividend yield.

Positive Factors

Improved Profitability

The improvement in net profit margin from negative to positive indicates enhanced operational efficiency and profitability, suggesting a stronger financial footing moving forward.

Low Leverage

A low debt-to-equity ratio indicates prudent financial management, reducing risk and providing more flexibility for future investments or downturns.

Strong Equity Base

A strong equity base provides stability and resilience, allowing the company to withstand financial challenges and invest in growth opportunities.

Negative Factors

Declining Revenue

Declining revenue trends can hinder growth prospects and affect the company's ability to invest in new opportunities, impacting long-term competitiveness.

Cash Flow Issues

Lack of positive cash flow suggests challenges in generating cash from operations, which can affect the company's ability to fund operations and growth initiatives.

Decreased Stockholders' Equity

A decrease in stockholders' equity may signal financial strain or reduced investor confidence, potentially impacting the company's ability to raise capital.

Central China New Life Ltd. Business Overview & Revenue Model

Company Description

Central China New Life Limited, an investment holding company, provides property management services and value-added services in the People's Republic of China. It operates through three segments: Property Management and Value-Added Services, Lifestyle Services, and Commercial Property Management and Consultation Services. The company manages a portfolio of properties, including residential properties, shopping malls, cultural tourism complexes, commercial apartments, office buildings, schools, hospitals, city services, factories, and parks and properties of governmental agencies. It also offers consultancy services to property developers, community value-added services, intelligent community services, personalized services to VIPs of the Central China Consumer Club, and real estate marketing services. In addition, the company operates Jianye + platform, an online to offline one-stop service platform that provides customers with goods and services; and offers travel services, as well as management services in Cuisine Henan Foodcourts. Further, it engages in the provision of hotel management and operation services; and management services for agricultural and cultural tourism projects, as well as in the commercial real-estate operations. The company was founded in 1994 and is based in Zhengzhou, the People's Republic of China. Central China New Life Limited is a subsidiary of Enjoy Start Limited.

How the Company Makes Money

Central China New Life generates revenue primarily through the sale of its health and nutritional products. The company operates through multiple revenue streams, including direct sales to consumers, partnerships with retail distributors, and e-commerce platforms that expand its market reach. A significant portion of its earnings comes from strategic collaborations with local and international health brands, enhancing its product portfolio and market presence. Additionally, the company invests in marketing and promotional activities to drive consumer awareness and increase sales, thereby contributing to its overall revenue growth.

Central China New Life Ltd. Financial Statement Overview

Summary

Profitability and margins recovered in 2024 (net margin turned positive; EBIT/EBITDA margins improved), and leverage remains low (debt-to-equity 0.04). However, cash generation is a major weakness with zero operating cash flow and free cash flow in 2024, raising liquidity/quality-of-earnings concerns.

Income Statement

The company experienced fluctuating revenues with a decline in 2024 from 2022, but shows a recovery from 2023. Gross Profit Margin was 22.11% in 2024, showing a decrease from the previous year. The Net Profit Margin improved significantly to 7.27% in 2024 from a negative margin in 2023, indicating recovering profitability. EBIT and EBITDA margins have improved from negative figures in 2023 to 12.19% and 13.43% respectively in 2024.

Balance Sheet

The company maintains a strong equity base with an Equity Ratio of 39.41% in 2024. The Debt-to-Equity Ratio is low at 0.04, suggesting low leverage. However, Stockholders' Equity has decreased from 2023 to 2024. Return on Equity improved to 11.52% in 2024, reflecting better utilization of equity compared to losses in 2023.

Cash Flow

The cash flow position weakened with zero operating cash flow and free cash flow in 2024, down from negative figures in 2023. The absence of positive cash flows indicates potential liquidity issues. Without operating cash flow, the ability to generate cash from operations is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.90B	2.95B	2.84B	3.15B	3.60B	2.65B
Gross Profit	618.71M	652.77M	757.09M	1.04B	1.18B	860.72M
EBITDA	357.20M	396.59M	-641.15M	830.62M	887.44M	584.09M
Net Income	217.37M	214.59M	-574.37M	562.26M	619.56M	426.59M
Balance Sheet
Total Assets	4.45B	4.73B	4.85B	5.33B	5.04B	4.25B
Cash, Cash Equivalents and Short-Term Investments	835.61M	1.19B	1.66B	2.08B	2.32B	2.68B
Total Debt	65.34M	66.96M	67.84M	85.80M	50.18M	21.21M
Total Liabilities	2.44B	2.74B	2.69B	2.28B	1.98B	1.53B
Stockholders Equity	1.89B	1.86B	2.05B	2.94B	2.95B	2.69B
Cash Flow
Free Cash Flow	-780.48M	-4.53M	-89.89M	290.92M	145.45M	257.20M
Operating Cash Flow	-766.36M	3.86M	-77.09M	308.66M	178.44M	281.27M
Investing Cash Flow	-5.74M	893.00K	18.46M	126.84M	245.64M	-532.82M
Financing Cash Flow	-434.22M	-429.37M	-370.14M	-675.63M	-360.51M	2.00B

Central China New Life Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9983, the sentiment is Neutral. The current price of 0.6 is above the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.63, and below the 200-day MA of 0.95, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 44.80 is Neutral, neither overbought nor oversold. The STOCH value of 86.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:9983.

Central China New Life Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3658	78 Outperform	HK$1.55B	6.28	18.19%	9.95%	10.09%	2.39%
9983	66 Neutral	HK$688.62M	2.90	11.48%	18.38%	-2.61%	―
6989	66 Neutral	HK$1.00B	3.16	7.55%	16.21%	-0.79%	-3.46%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
6093	62 Neutral	HK$420.00M	21.61	2.59%	―	3.93%	-71.60%
0021	52 Neutral	HK$353.80M	-10.23	-4.27%	―	1303.01%	-45.00%