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

• Market Cap: HK$1.56B
• Dividend Yield: 12.27%
• Average Volume (3M): 266.10K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.79
• Revenue Growth: 1.88%
• EPS Growth: N/A
• Country: HK
• Employees: 5,699
• Sector: Real Estate
• Sector Strength: 73
• Industry: Real Estate - Services
• EPS (TTM): 0.18
• Shares Outstanding: 1,299,276,000
• 10 Day Avg. Volume: 364,700
• 30 Day Avg. Volume: 266,100
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ―

Central China New Life Ltd. shows promising profitability recovery and attractive valuation metrics. However, liquidity issues due to weak cash flows and modest technical indicators limit the overall attractiveness. The stock is appealing for its valuation and dividend yield, but caution is warranted due to cash flow concerns.

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
	EBIT
359.81M	-696.03M	759.41M	814.32M	543.27M
	EBITDA
396.59M	-641.15M	830.62M	887.44M	584.09M
	Net Income Common Stockholders
214.59M	-574.37M	562.26M	619.56M	426.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.19B	1.62B	2.08B	2.32B	2.68B
	Total Assets
4.73B	4.85B	5.33B	5.04B	4.25B
	Total Debt
66.96M	67.84M	85.80M	50.18M	21.21M
	Net Debt
-1.12B	-1.55B	-1.96B	-2.21B	-2.20B
	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: Positive
• Last Price: 1.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 1.18 is below the 20-day moving average (MA) of 1.19, above the 50-day MA of 1.15, and above the 200-day MA of 1.14, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.27 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2669	76 Outperform	$17.83B	10.89		24.60%	―	―
2869	71 Outperform	HK$13.61B	18.36	8.94%	3.46%	1.01%	12.45%
6099	71 Outperform	€152.79B	10.74	8.73%	3.18%	-2.52%	17.25%
1995	68 Neutral	HK$3.47B	6.72	9.70%	6.65%	2.68%	8.49%
9983	65 Neutral	HK$1.56B	6.60	10.96%	12.27%	1.88%	―
Sector *	61 Neutral	$2.85B	10.99	0.40%	6.10%	5.75%	-21.23%
3319	46 Neutral	€4.25B	―	-29.17%	2.57%	-11.94%	-756.32%

Central China New Life Ltd. Corporate Events

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.

Central China New Life Ltd. Achieves Financial Turnaround in 2024

Central China New Life Ltd. reported a revenue increase of 3.8% for the year ending December 31, 2024, reaching RMB2,952.2 million. Despite a decrease in gross profit by 15.4%, the company turned around its financial performance with a net profit of RMB238.2 million compared to a net loss in 2023. The company’s GFA under management grew by 8.3%, and it announced a final dividend of HK$7.36 cents per share, pending shareholder approval. This financial turnaround and expansion in managed GFA indicate a positive shift in the company’s operations and market positioning.

Central China New Life Ltd. Declares Final Dividend for 2024

Central China New Life Ltd. has announced a final cash dividend of HKD 0.0736 per share for the financial year ending December 31, 2024. The dividend will be paid on June 25, 2025, following shareholder approval on June 2, 2025. This announcement reflects the company’s commitment to returning value to its shareholders, potentially impacting its market positioning positively by demonstrating financial stability and shareholder confidence.