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Guan Chao Holdings Limited (HK:1872)
:1872
Hong Kong Market
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Guan Chao Holdings Limited (1872) AI Stock Analysis

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HK:1872

Guan Chao Holdings Limited

(1872)

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Neutral 47 (OpenAI - 4o)
Rating:47Neutral
Price Target:
HK$5.50
▼(-12.42% Downside)
The overall stock score is primarily impacted by financial performance challenges, including inconsistent revenue growth and declining profitability. Technical analysis provides a mixed outlook with some potential for upward momentum, but valuation concerns due to a negative P/E ratio and lack of dividend yield weigh heavily on the score.

Guan Chao Holdings Limited (1872) vs. iShares MSCI Hong Kong ETF (EWH)

Guan Chao Holdings Limited Business Overview & Revenue Model

Company DescriptionGuan Chao Holdings Limited, an investment holding company, sells parallel-import and pre-owned motor vehicles in Singapore. It also provides motor vehicle financing and insurance agency services; and motor vehicle leasing services, as well as sells motor vehicle spare parts and accessories. The company was founded in 1989 and is headquartered in Singapore.
How the Company Makes MoneyGuan Chao Holdings Limited generates revenue through several key streams. Primarily, the company profits from the manufacturing and sales of metal products, which constitute a significant portion of its operations. Additionally, the company engages in trading activities, importing and exporting various metal goods, which further contributes to its income. The logistics services offered by Guan Chao facilitate the distribution of its products, enhancing operational efficiency and generating additional revenue. Furthermore, the company invests in real estate, earning income from property leasing and capital appreciation. Strategic partnerships with suppliers and distributors in the metal industry also play a crucial role in expanding its market reach and optimizing its supply chain, thereby positively impacting its overall earnings.

Guan Chao Holdings Limited Financial Statement Overview

Summary
Guan Chao Holdings Limited is facing significant financial challenges. Revenue growth is inconsistent with declining profitability, and recent net losses have impacted financial stability. The balance sheet shows moderate leverage, but cash flow issues highlight the need for improved operational cash generation and cost management.
Income Statement
45
Neutral
The income statement shows a mixed performance. The revenue growth has been inconsistent, with a decrease from 2021 to 2022, but a subsequent increase in 2023. Gross profit margin has decreased over the recent years, and the company reported a net loss in 2024. EBIT and EBITDA margins have also seen a decline, suggesting pressure on operational efficiency.
Balance Sheet
55
Neutral
The balance sheet indicates moderate financial health. The debt-to-equity ratio has improved slightly, reflecting some deleveraging efforts, but remains a potential risk. Return on equity is negative in 2024 due to the net loss, while the equity ratio has been stable, suggesting a balanced use of equity financing.
Cash Flow
40
Negative
Cash flow performance is concerning as operating cash flow turned negative in 2024. There is no free cash flow growth due to zero capital expenditure, which suggests limited reinvestment in the business. The company needs to improve cash generation to support future growth and operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue250.89M190.89M180.88M179.09M246.44M160.87M
Gross Profit25.89M21.30M22.44M23.75M28.36M18.41M
EBITDA175.00K2.60M16.92M9.70M15.99M7.19M
Net Income-6.09M-3.24M7.75M5.02M9.99M3.25M
Balance Sheet
Total Assets179.21M137.75M153.94M156.96M114.77M110.57M
Cash, Cash Equivalents and Short-Term Investments21.22M11.20M12.97M5.53M6.61M6.82M
Total Debt55.94M55.25M71.58M75.14M44.30M49.03M
Total Liabilities77.26M66.33M81.94M93.11M55.92M61.72M
Stockholders Equity99.40M70.86M71.61M63.85M58.83M48.84M
Cash Flow
Free Cash Flow-11.37M11.57M4.49M-34.30M5.10M3.66M
Operating Cash Flow1.87M16.45M16.25M-13.51M10.49M5.68M
Investing Cash Flow-7.82M575.00K-2.44M-17.72M-4.72M-1.28M
Financing Cash Flow18.55M-18.80M-6.36M30.15M-5.98M-7.24M

Guan Chao Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.28
Price Trends
50DMA
5.11
Positive
100DMA
4.61
Positive
200DMA
3.34
Positive
Market Momentum
MACD
0.17
Positive
RSI
49.08
Neutral
STOCH
6.31
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1872, the sentiment is Positive. The current price of 6.28 is below the 20-day moving average (MA) of 6.30, above the 50-day MA of 5.11, and above the 200-day MA of 3.34, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 6.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1872.

Guan Chao Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
52
Neutral
HK$1.43B-0.25-9.07%-26.94%
47
Neutral
HK$3.58B-8.58%71.00%-579.14%
46
Neutral
$3.02B-0.88-26.57%9.22%-13.69%-1296.59%
45
Neutral
$2.30B-0.70-87.36%2.93%-14.04%-4222.02%
45
Neutral
HK$168.00M-8.81%-24.42%-115.68%
43
Neutral
HK$1.73B-4.42%3.14%11.33%56.94%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1872
Guan Chao Holdings Limited
5.79
4.29
286.00%
HK:3669
China Yongda Automobiles Services
1.65
-0.13
-7.30%
HK:1268
China MeiDong Auto Holdings
1.66
-1.18
-41.51%
HK:1728
China Zhengtong Auto Services Holdings
0.14
<0.01
4.38%
HK:3836
China Harmony Auto Holding Limited
1.08
0.27
33.33%
HK:1771
Sunfonda Group Holdings Ltd.
0.28
0.00
0.00%

Guan Chao Holdings Limited Corporate Events

Guan Chao Holdings’ Subsidiary Recognized as Technology-Based SME
Oct 24, 2025

Guan Chao Holdings Limited announced that its subsidiary, Guangzhou Jinghong, has been included in the list of technology-based small and medium-sized enterprises (SMEs) by the Department of Science and Technology of Guangdong Province. This inclusion is expected to provide the company with access to beneficial policies such as tax incentives and financial subsidies, enhancing its market competitiveness and supporting its development plans.

The most recent analyst rating on (HK:1872) stock is a Hold with a HK$8.00 price target. To see the full list of analyst forecasts on Guan Chao Holdings Limited stock, see the HK:1872 Stock Forecast page.

Guan Chao Holdings Announces Board and Committee Roles
Oct 21, 2025

Guan Chao Holdings Limited has announced the composition of its board of directors and the roles within its three board committees. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This announcement reflects the company’s commitment to maintaining a structured governance framework, which is crucial for its operational integrity and stakeholder confidence.

The most recent analyst rating on (HK:1872) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Guan Chao Holdings Limited stock, see the HK:1872 Stock Forecast page.

Guan Chao Holdings Announces Board Changes
Oct 21, 2025

Guan Chao Holdings Limited has announced changes in its board composition, effective from October 21, 2025. Ms. Ng Hui Bin Audrey has resigned as an executive director to focus on other commitments, while Ms. Dong Wenying has been appointed as a non-executive director. Ms. Dong brings significant experience in the financial sector, particularly in private equity and venture capital investments, which may enhance the company’s strategic decision-making and investment capabilities.

The most recent analyst rating on (HK:1872) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Guan Chao Holdings Limited stock, see the HK:1872 Stock Forecast page.

Guan Chao Holdings Updates Nomination Committee Terms
Sep 1, 2025

Guan Chao Holdings Limited has updated the terms of reference for its Nomination Committee, which is responsible for recommending candidates to fill board vacancies. The committee will consist of at least three directors, with a majority being independent non-executive directors, and must include at least one member of a different gender. This move is aimed at enhancing the governance structure and ensuring a diverse and independent board, which could strengthen the company’s decision-making processes and potentially improve its market positioning.

The most recent analyst rating on (HK:1872) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Guan Chao Holdings Limited stock, see the HK:1872 Stock Forecast page.

Guan Chao Holdings Enhances Board with New Nomination Committee Appointment
Sep 1, 2025

Guan Chao Holdings Limited announced the appointment of Ms. Ng Hui Bin Audrey as a member of its Nomination Committee, effective 1 September 2025. This change aligns with recent amendments to the Listing Rules and Corporate Governance Code, aiming to enhance the board’s effectiveness and diversity, thereby strengthening the company’s corporate governance practices.

The most recent analyst rating on (HK:1872) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Guan Chao Holdings Limited stock, see the HK:1872 Stock Forecast page.

Guan Chao Holdings Announces Board and Committee Roles
Sep 1, 2025

Guan Chao Holdings Limited has announced the composition of its board of directors and the roles within its committees. The board includes both executive and independent non-executive directors, with Mr. Tan Shuay Tarng Vincent serving as Co-Chairman and CEO. The company has also detailed the membership of its audit, remuneration, and nomination committees, highlighting the leadership roles within these groups.

The most recent analyst rating on (HK:1872) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Guan Chao Holdings Limited stock, see the HK:1872 Stock Forecast page.

Guan Chao Holdings Reports Revenue Growth but Faces Net Loss in H1 2025
Aug 29, 2025

Guan Chao Holdings Limited reported its unaudited financial results for the six months ending June 30, 2025, showing a significant increase in revenue to S$140,114,000 from S$80,120,000 in the same period of 2024. Despite the revenue growth, the company experienced a net loss of S$1,904,000 due to increased costs and expenses, impacting its profitability and resulting in a comprehensive loss for the period. This financial performance may affect the company’s market position and stakeholder confidence.

The most recent analyst rating on (HK:1872) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Guan Chao Holdings Limited stock, see the HK:1872 Stock Forecast page.

Guan Chao Holdings Advances Joint Venture with Second Loan Release
Aug 28, 2025

Guan Chao Holdings Limited announced the fulfillment of conditions for releasing the second tranche of financial assistance, amounting to RMB7 million, to its joint venture. This development aligns with the company’s expectations for its project focused on lithium niobate thin films, indicating positive progress in their strategic initiatives.

The most recent analyst rating on (HK:1872) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Guan Chao Holdings Limited stock, see the HK:1872 Stock Forecast page.

Guan Chao Holdings Issues Profit Warning for H1 2025
Aug 22, 2025

Guan Chao Holdings Limited has issued a profit warning, indicating an expected loss of approximately S$1.9 million for the first half of 2025, compared to a profit of S$0.7 million in the same period of 2024. This shift from profit to loss is attributed to increased selling, distribution, and administrative expenses, and stakeholders are advised to exercise caution when dealing with the company’s shares.

The most recent analyst rating on (HK:1872) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Guan Chao Holdings Limited stock, see the HK:1872 Stock Forecast page.

Guan Chao Holdings Schedules Board Meeting to Review Interim Results
Aug 18, 2025

Guan Chao Holdings Limited has announced a board meeting scheduled for August 29, 2025, to discuss and approve the company’s unaudited interim results for the first half of the year and to consider the recommendation of an interim dividend. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and potential dividend payouts, impacting investor confidence and market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 06, 2025