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

• Market Cap: HK$1.46B
• Dividend Yield: 13.14%
• Average Volume (3M): 412.70K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.77
• Revenue Growth: 1.88%
• EPS Growth: N/A
• Country: HK
• Employees: 5,699
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.18
• Shares Outstanding: 1,299,276,000
• 10 Day Avg. Volume: 345,600
• 30 Day Avg. Volume: 412,700
• PEG Ratio: -0.59
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.70
• 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$1.00
• Price Target Upside: -12.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: HK$1.00 ▼(-12.28%Downside)

The stock score is primarily driven by strong valuation metrics, including a low P/E ratio and high dividend yield, indicating potential undervaluation. However, liquidity concerns due to weak cash flow generation and neutral technical indicators limit the overall score. Continued improvement in cash flow stability is needed to enhance financial health and investor confidence.

Central China New Life Ltd. Business Overview & Revenue Model

Company Description

Central China New Life Ltd. (9983) is a leading comprehensive property management service provider in China, primarily focused on offering a wide range of services that enhance the living experience in residential communities. The company operates in sectors such as property management, value-added services for non-property owners, and lifestyle services, aiming to deliver high-quality management and solutions to its clients.

How the Company Makes Money

Central China New Life Ltd. generates revenue through multiple streams. The primary source of income is from property management services, which include managing residential and commercial properties, providing maintenance, security, and landscaping services. The company also earns from value-added services for non-property owners, such as consultancy and community operations. Additionally, lifestyle services, which encompass community retail, fitness, and health services, contribute to its earnings. Strategic partnerships with real estate developers and other service providers further bolster its revenue streams by expanding its service offerings and client base.

Central China New Life Ltd. Financial Statement Overview

Summary

Central China New Life Ltd. displays a recovery in profitability, with improved margins and low leverage. However, the cash flow position is concerning due to zero operating and free cash flows, indicating potential liquidity issues. Focus on stabilizing cash flows and sustaining revenue growth is necessary.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.95B	2.84B	3.15B	3.60B	2.65B
Gross Profit	652.77M	757.09M	1.04B	1.18B	860.72M
EBITDA	396.59M	-641.15M	830.62M	887.44M	584.09M
Net Income	214.59M	-574.37M	562.26M	619.56M	426.59M
Balance Sheet
Total Assets	4.73B	4.85B	5.33B	5.04B	4.25B
Cash, Cash Equivalents and Short-Term Investments	1.19B	1.62B	2.08B	2.32B	2.68B
Total Debt	66.96M	67.84M	85.80M	50.18M	21.21M
Total Liabilities	2.74B	2.69B	2.28B	1.98B	1.53B
Stockholders Equity	1.86B	2.05B	2.94B	2.95B	2.69B
Cash Flow
Free Cash Flow	-4.53M	-89.89M	290.92M	145.45M	257.20M
Operating Cash Flow	3.86M	-77.09M	308.66M	178.44M	281.27M
Investing Cash Flow	893.00K	18.46M	126.84M	245.64M	-532.82M
Financing Cash Flow	-429.37M	-370.14M	-675.63M	-360.51M	2.00B

Central China New Life Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.14 is above the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.16, and below the 200-day MA of 1.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 79.37 is Neutral, 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
6989	80 Outperform	HK$1.78B	5.27	8.56%	8.60%	5.84%	0.84%
3658	79 Outperform	HK$1.63B	6.62	18.89%	8.30%	15.31%	3.39%
6093	67 Neutral	HK$700.00M	12.06	7.83%	―	1.96%	-32.15%
9983	65 Neutral	HK$1.46B	6.27	10.96%	13.14%	1.88%	―
0021	55 Neutral	HK$484.98M	29.07	2.08%	―	450.21%	―
Sector *	54 Neutral	$1.20B	3.61	0.13%	7.01%	-2.13%	-128.06%

Central China New Life Ltd. Corporate Events

Central China New Life Limited Forms Nomination Committee to Strengthen Governance

Central China New Life Limited has established a nomination committee as part of its corporate governance structure. The committee, formed by the board of directors, will consist of at least three members, primarily independent non-executive directors, with a focus on gender diversity. This initiative is expected to enhance the company’s governance practices and ensure a more structured approach to board nominations, potentially impacting the company’s strategic direction and stakeholder engagement.

Central China New Life Ltd. Delays Final Dividend Payment Date

Central China New Life Limited has announced a delay in the payment date of its final dividend for the year ended December 31, 2024. Originally scheduled for June 25, 2025, the payment will now be made on or before July 4, 2025. This change affects shareholders who were on the register as of June 11, 2025, but all other details regarding the dividend remain unchanged.

Central China New Life Ltd. Updates Final Dividend Payment Date

Central China New Life Ltd. announced an update regarding its final cash dividend for the year ending December 31, 2024. The company has delayed the payment date of the dividend, which is set at HKD 0.0736 per share, to July 4, 2025. This update may impact stakeholders’ expectations regarding the company’s financial distributions.

Central China New Life Ltd. AGM Resolutions Approved

Central China New Life Ltd. announced that all proposed resolutions at its Annual General Meeting on June 2, 2025, were approved by shareholders. Key resolutions included the approval of financial statements for the year ending December 31, 2024, the declaration of a final dividend, and the re-election of several directors. The approval of these resolutions supports the company’s operational stability and strategic direction, reinforcing its position in the market and providing assurance to stakeholders.

Central China New Life Ltd. Announces Annual General Meeting and Key Resolutions

Central China New Life Ltd. has announced its annual general meeting scheduled for June 2, 2025, where shareholders will discuss and approve several key matters. These include the approval of the audited financial statements for 2024, the declaration of a final dividend, the re-election of directors, and the re-appointment of auditors. Additionally, the meeting will consider resolutions to authorize the directors to issue additional shares, which could impact the company’s capital structure and market positioning.

Central China New Life Ltd. Announces Executive Leadership Changes

Central China New Life Ltd. announced significant changes in its executive leadership, with the resignation of Ms. Dai Jiling as Executive Director and CEO to focus on other responsibilities within the CCRE Group. Mr. Wang Jun has been appointed as the new CEO, bringing extensive experience in accounting, corporate finance, and investment banking. These leadership changes are expected to influence the company’s strategic direction and potentially impact its market positioning.

Central China New Life Limited Announces Board Composition

Central China New Life Limited has announced the composition of its board of directors, which includes five members with Mr. Wang Jun serving as the Chairman and CEO. The board also includes three independent non-executive directors, with various members serving on audit, remuneration, and nomination committees. This announcement highlights the company’s governance structure, which is crucial for its strategic direction and operational oversight.