China Huirong Financial Holdings Ltd. (1290) AI Stock Analysis

• Market Cap: HK$719.62M
• Dividend Yield: 4.55%
• Average Volume (3M): 28.33K
• Price to Earnings (P/E): 12.7
• Beta (1Y): -0.09
• Revenue Growth: -1.76%
• EPS Growth: 6.11%
• Country: HK
• Employees: 156
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.03
• Shares Outstanding: 1,090,335,000
• 10 Day Avg. Volume: 44,200
• 30 Day Avg. Volume: 28,333
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: -24.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: HK$0.50 ▼(-24.24% Downside)

The overall stock score of 64 reflects a balance between stable financial performance and reasonable valuation. However, technical indicators suggest caution due to overbought conditions. The company's ability to manage cash flow volatility will be crucial for future growth.

China Huirong Financial Holdings Ltd. Business Overview & Revenue Model

Company Description

China Huirong Financial Holdings Limited, an investment holding company, provides financial services to small and medium enterprises (SMEs), and individuals in the People's Republic of China. It operates through two segments, Inclusive Finance Business Division and Ecology Finance Business Division. The company offers real estate backed loans, such as personal or corporate financing services to customers; personal property backed financing services for individuals; gold, jewelry, works of art, diamonds, watches, luxury goods, etc.; micro-finance services; turnover loan funds; art investment; equity investment, special asset investment, and insurance brokerage; and supply chain technology, loan facilitation, and factoring services. Further, it provides management and marketing consulting, pawnshop, micro-financing, factoring, technology development and consulting, supply chain management, and non-performing assets purchasing and disposal services. The company was founded in 1999 and is headquartered in Suzhou, the People's Republic of China.

How the Company Makes Money

China Huirong Financial Holdings Ltd. generates revenue primarily through interest income derived from its loan offerings. The company's core business involves providing secured loans, where borrowers pledge collateral, such as real estate or personal property, to secure the loan. In addition to interest income, the company may earn revenue from fees charged for loan processing and other ancillary services. The company focuses on serving small and micro enterprises and individual borrowers who may have limited access to traditional banking services. Key factors contributing to the company's earnings include its ability to manage risk, maintain a high loan approval rate, and effectively collect repayments. Partnerships with local governments or financial institutions may also play a role in enhancing its service offerings and expanding its customer base.

China Huirong Financial Holdings Ltd. Financial Statement Overview

Summary

China Huirong Financial Holdings Ltd. demonstrates stable profitability margins and a sound balance sheet with moderate leverage. However, negative free cash flow and volatility in operating cash flows pose liquidity risks, despite improvements in financing activities.

Income Statement

The company's revenue has shown fluctuations over the years, with a slight decrease in the most recent period. Gross Profit Margin remains stable around 34%, indicating consistent cost management. Net Profit Margin has improved year over year, rising to approximately 7.7% in the latest period. EBIT and EBITDA margins are strong, showing healthy operational efficiency despite revenue variability.

Balance Sheet

The balance sheet shows a stable equity base, with Stockholders' Equity increasing. The Debt-to-Equity ratio is moderate at 0.58, indicating balanced leverage. The Equity Ratio stands at about 55%, suggesting a solid equity buffer. Return on Equity has improved, reflecting better profitability relative to equity.

Cash Flow

Cash flows are somewhat volatile, with negative operating cash flows in recent years. Free Cash Flow remains negative, indicating challenges in covering capital expenditures and debt obligations from operational cash. However, improvements in financing activities are evident, which help in managing liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	653.16M	654.93M	621.01M	485.67M	254.63M
Gross Profit	224.06M	209.50M	184.81M	236.35M	123.71M
EBITDA	156.15M	141.32M	120.75M	180.15M	78.81M
Net Income	50.48M	46.45M	41.06M	87.17M	2.22M
Balance Sheet
Total Assets	3.50B	3.30B	2.99B	2.84B	2.53B
Cash, Cash Equivalents and Short-Term Investments	247.32M	258.00M	431.77M	576.39M	541.50M
Total Debt	1.11B	942.22M	734.45M	603.11M	519.36M
Total Liabilities	1.30B	1.14B	873.82M	742.46M	590.66M
Stockholders Equity	1.91B	1.88B	1.87B	1.87B	1.78B
Cash Flow
Free Cash Flow	-80.33M	-261.48M	-111.94M	69.59M	404.06M
Operating Cash Flow	-77.77M	-254.19M	-102.49M	98.46M	410.78M
Investing Cash Flow	-59.05M	4.80M	-26.19M	-75.67M	-7.26M
Financing Cash Flow	136.05M	189.92M	89.58M	108.42M	-479.17M

China Huirong Financial Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1290, the sentiment is Positive. The current price of 0.66 is above the 20-day moving average (MA) of 0.62, above the 50-day MA of 0.62, and above the 200-day MA of 0.64, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 72.25 is Negative, neither overbought nor oversold. The STOCH value of 68.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1290.

China Huirong Financial Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6866	68 Neutral	HK$371.70M	6.97	―	4.41%	-25.70%	-39.65%
1601	68 Neutral	HK$1.42B	3.92	―	7.34%	1.11%	3.98%
1290	64 Neutral	HK$719.62M	12.67	2.76%	4.55%	-1.76%	6.11%
1563	62 Neutral	HK$360.16M	12.38	1.08%	―	-9.75%	-81.16%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

China Huirong Financial Holdings Ltd. Corporate Events

China Huirong Updates Board Leadership Roles

China Huirong Financial Holdings Limited has announced an update to its board of directors, clarifying that Mr. Tse Yat Hong is now the lead independent non-executive director, replacing Mr. Liang Jianhong. This change is part of an amended and restated list of directors and their roles, effective May 29, 2025. The update reflects the company’s commitment to maintaining clear governance structures and transparency in its leadership roles, which is crucial for its stakeholders and market positioning.

China Huirong Financial Holdings Ltd. AGM Resolutions Passed

China Huirong Financial Holdings Ltd. announced the results of its Annual General Meeting held on May 28, 2025, where all proposed resolutions were passed. These resolutions included the approval of financial statements, declaration of a final dividend, re-election of directors, and granting of mandates for share buybacks and issuance. The successful passage of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility.

China Huirong Financial Holdings Announces Board and Committee Roles

China Huirong Financial Holdings Ltd. has announced the composition of its board of directors and the roles within its board committees. This announcement outlines the leadership structure, which includes executive, non-executive, and independent non-executive directors, and details the members of the audit, remuneration, and nomination committees. This structured leadership is crucial for the company’s governance and operational strategy, potentially impacting its market positioning and stakeholder confidence.