China South City Holdings Limited (1668) AI Stock Analysis

• Market Cap: HK$1.38B
• Dividend Yield: 12.5%
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.27
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 1,248
• Sector: Real Estate
• Sector Strength: 80
• Industry: Real Estate - Development
• EPS (TTM): N/A
• Shares Outstanding: 11,441,893,000
• 10 Day Avg. Volume: 1,737,000
• 30 Day Avg. Volume: 2,048,466
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The overall score reflects significant financial challenges, including declining revenue, high leverage, and negative cash flows. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold indicators. Valuation concerns are highlighted by a negative P/E ratio and lack of dividends, suggesting limited attractiveness without income returns.

China South City Holdings Limited Business Overview & Revenue Model

Company Description

China South City Holdings Limited (1668) is a leading developer and operator of large-scale integrated logistics and trade centers in China. The company primarily focuses on the development and management of logistics and trade centers, which include wholesale markets, exhibition centers, and office buildings. These centers cater to a wide range of industries such as textiles, clothing, electronics, and household goods. Beyond the development of physical infrastructure, China South City also provides value-added services to enhance the trade and logistics ecosystem.

How the Company Makes Money

China South City Holdings Limited generates revenue through a diversified model primarily involving rental income from its logistics and trade centers, sales of properties, and provision of related services. The company's key revenue streams include leasing commercial spaces within its trade centers to wholesalers and retailers, which form a consistent source of rental income. Additionally, the company sells properties within its developments, including residential units and office spaces. China South City also earns from providing value-added services such as supply chain management, e-commerce support, and logistics services. Strategic partnerships with local governments and other businesses further support its operations and revenue growth by enhancing the attractiveness and functionality of its trade centers.

China South City Holdings Limited Financial Statement Overview

Summary

China South City Holdings Limited is facing significant financial challenges. Revenue and profitability have declined sharply, with substantial net losses impacting financial stability. High leverage and negative cash flows further compound the financial strain, indicating potential risks in sustaining operations and growth in the current market environment.

Income Statement

The company has experienced a significant decline in revenue over the years, with a notable drop from 2021 to 2024. Gross and net profit margins have deteriorated, with the company facing substantial net losses in recent periods. The negative EBIT and EBITDA margins indicate operational inefficiencies and a challenging market environment.

Balance Sheet

The company's debt-to-equity ratio is high, indicating significant leverage. This could pose a risk in a volatile market. However, the equity ratio remains relatively stable, suggesting some level of financial stability. The decreasing stockholders' equity over time highlights potential challenges in maintaining financial health.

Cash Flow

The company has faced consistent negative free cash flow in recent years, indicating cash burn. Operating cash flow has been negative, suggesting difficulties in generating cash from core operations. This could affect the company's ability to finance its obligations and growth.

Breakdown
Dec 2023	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.68B	4.06B	9.66B	11.32B	9.93B
	Gross Profit
1.08B	832.41M	2.89B	4.95B	4.57B
	EBIT
-21.48M	-248.96M	1.50B	3.19B	2.89B
	EBITDA
-1.15B	-103.22M	1.73B	3.47B	3.13B
	Net Income Common Stockholders
-5.76B	-1.57B	760.20M	2.42B	2.63B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.08B	2.53B	4.68B	9.45B	10.66B
	Total Assets
100.38B	114.22B	124.39B	120.54B	113.43B
	Total Debt
32.85B	33.75B	38.38B	39.06B	35.58B
	Net Debt
32.62B	31.23B	33.70B	31.82B	28.58B
	Total Liabilities
63.93B	71.54B	79.30B	79.25B	78.55B
	Stockholders Equity
36.43B	42.67B	45.07B	41.28B	34.83B
Cash Flow		Free Cash Flow
-346.20M	-4.60B	-3.19B	-3.41B	1.17B
	Operating Cash Flow
-323.34M	-3.56B	-3.06B	-1.20B	4.05B
	Investing Cash Flow
702.82M	2.93B	308.47M	-2.20B	-3.24B
	Financing Cash Flow
372.26M	-1.10B	-2.09B	1.60B	318.77M

China South City Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 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:1668, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.15, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 37.19 is Neutral, neither overbought nor oversold. The STOCH value of 29.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1668.

China South City Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3662	67 Neutral	HK$392.18M	3.76	8.37%	―	-14.98%	-39.71%
Sector *	60 Neutral	$2.81B	11.39	0.21%	8508.43%	6.31%	-14.32%
1668	38 Underperform	HK$1.38B	―		12.50%	―	―
1996	30 Underperform	€188.95M	―	-238.71%	―	-43.49%	31.62%
1233	24 Underperform	$458.20M	―	-3320.67%	―	-38.81%	-263.64%

China South City Holdings Limited Corporate Events

China South City Holdings Adjourns Winding-Up Petition Hearing Amid Restructuring Efforts

China South City Holdings Limited has announced the adjournment of a winding-up petition hearing to 19 May 2025, following a High Court decision. This development is part of the company’s ongoing offshore restructuring efforts, and stakeholders are advised to exercise caution when dealing with the company’s securities.

China South City Reports Increased Revenue but Faces Significant Losses in 2024

China South City Holdings Limited reported its annual results for the year ended December 31, 2024, showing a 16.4% increase in revenue to HK$4,083,380,000. However, the company faced a significant increase in losses, with a loss for the year amounting to HK$8,975,904,000, more than double the previous period’s loss. This increase in losses is attributed to factors such as fair value losses on investment properties and higher finance costs. The announcement highlights the financial challenges the company is facing, which may impact its market position and stakeholders’ confidence.

China South City Holdings Issues Profit Warning for FY2024

China South City Holdings Limited has issued a profit warning, indicating an expected loss after tax between HK$8.0 billion and HK$9.0 billion for the fiscal year ending December 31, 2024. This anticipated loss is attributed to increased provisions for inventory impairment, reversal of deferred tax assets, higher finance costs due to reduced interest capitalization on properties under development, and fair value losses on investment properties. The company’s results announcement is expected by March 28, 2025, and stakeholders are advised to exercise caution when dealing with the company’s securities.

China South City Holdings Schedules Board Meeting to Approve Annual Results

China South City Holdings Limited has announced a board meeting scheduled for March 28, 2025, to review and approve the audited annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend, which could impact shareholder returns and reflect the company’s financial health.

China South City Holdings Delays Dividend Payment Amid Debt Talks

China South City Holdings Limited announced a further delay in the payment of its final dividend for the fiscal year ending March 31, 2023. The company cited lower-than-expected sales and cash flow issues, exacerbated by unsuccessful asset disposals, as reasons for the delay. The company is in talks with creditors to find a comprehensive solution to its debt situation to ensure sustainable operations and future development, aiming to pay the dividend by December 31, 2025.