China Renaissance Holdings (1911) AI Stock Analysis

• Market Cap: $2.37B
• Dividend Yield: N/A
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: 12.09%
• EPS Growth: 60.49%
• Country: HK
• Employees: 480
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Capital Markets
• EPS (TTM): -0.20
• Shares Outstanding: 572,197,750
• 10 Day Avg. Volume: 1,860,953
• 30 Day Avg. Volume: 1,709,332
• PEG Ratio: -0.29
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.21
• 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: 46 Neutral
• Price Target: ―

China Renaissance Holdings faces significant financial challenges with declining revenues and profitability. Despite a strong equity position, liquidity risks are evident due to volatile cash flows. Technical indicators also point towards a bearish trend, and valuation metrics show the stock is not attractively priced. These factors contribute to an overall low stock score.

China Renaissance Holdings Business Overview & Revenue Model

Company Description

China Renaissance Holdings (1911) is a leading investment bank and investment management firm in China. The company operates across several sectors including financial advisory, investment management, and wealth management. It provides a wide range of services such as mergers and acquisitions advisory, private placements, securities underwriting, and asset management services. China Renaissance is known for its strong presence in the technology, media, and telecommunications (TMT) sectors, offering comprehensive financial solutions to high-growth companies in these industries.

How the Company Makes Money

China Renaissance Holdings makes money primarily through its three main business segments: investment banking, investment management, and wealth management. In the investment banking segment, the company generates revenue by providing advisory services for mergers and acquisitions, private placements, and initial public offerings (IPOs). The investment management division earns money by managing private equity funds and venture capital funds, collecting management fees and performance-based incentives. The wealth management segment contributes to the company's earnings through advisory fees and commissions from providing financial planning and investment solutions to high-net-worth individuals and family offices. The firm's strong network and reputation in the TMT sector, as well as strategic partnerships with key industry players, further bolster its revenue generation capabilities.

China Renaissance Holdings Financial Statement Overview

Summary

China Renaissance Holdings is facing financial challenges, marked by declining revenues and profitability. The balance sheet provides some reassurance with a strong equity position and no debt in 2024, reducing leverage concerns. However, cash flow volatility and negative operating cash flow in recent periods highlight liquidity risks. Overall, while the company has a solid balance sheet, its income statement and cash flow performance suggest areas of significant concern.

Income Statement

The company has experienced declining revenue and profitability over the years. The revenue decreased from 1,744.48M in 2021 to 823.56M in 2024, indicating a negative growth trajectory. The net profit margin is negative in recent years, with net losses recorded in 2022, 2023, and 2024. EBIT margin remains negative, suggesting ongoing operational challenges. Gross profit margins have fluctuated, but the overall trend indicates financial struggles.

Balance Sheet

The balance sheet demonstrates some stability with a strong equity base and no debt recorded in 2024, which reduces leverage risks. The equity ratio is healthy, but stockholders' equity has slightly decreased over time. The debt-to-equity ratio was manageable in previous years and became more favorable as total debt was eliminated by 2024.

Cash Flow

The cash flow statement reveals a volatile cash flow situation with operating cash flow dropping to zero in 2024. Free cash flow was positive in 2023 but turned negative in previous years. The fluctuating cash flow metrics indicate potential liquidity issues and challenges in generating consistent cash inflows from operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	823.56M	848.26M	1.56B	1.74B	1.59B
Gross Profit	823.56M	258.31M	549.15M	633.46M	476.38M
EBITDA	0.00	-201.53M	-184.41M	503.46M	1.25B
Net Income	-179.02M	-471.90M	-429.90M	1.62B	1.04B
Balance Sheet
Total Assets	10.56B	9.34B	13.00B	14.16B	12.54B
Cash, Cash Equivalents and Short-Term Investments	1.30B	4.11B	5.47B	5.65B	4.79B
Total Debt	0.00	629.41M	2.62B	3.29B	1.52B
Total Liabilities	3.51B	2.16B	5.60B	6.26B	5.16B
Stockholders Equity	6.04B	6.14B	6.37B	6.83B	5.90B
Cash Flow
Free Cash Flow	18.48M	776.64M	-789.54M	1.64B	300.66M
Operating Cash Flow	42.96M	790.71M	-738.01M	1.70B	340.15M
Investing Cash Flow	-33.70M	1.13B	327.83M	-1.03B	-521.37M
Financing Cash Flow	136.88M	-2.41B	-619.10M	1.12B	-95.69M

China Renaissance Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1911, the sentiment is Positive. The current price of 4.28 is above the 20-day moving average (MA) of 3.92, above the 50-day MA of 3.43, and above the 200-day MA of 3.38, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 68.62 is Neutral, neither overbought nor oversold. The STOCH value of 60.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1911.

China Renaissance Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6030	74 Outperform	HK$433.53B	16.06	8.44%	4.27%	17.45%	8.24%
3908	72 Outperform	$150.64B	12.81	5.84%	1.06%	-9.55%	24.91%
6886	64 Neutral	$170.96B	9.25	9.25%	4.03%	-25.29%	17.94%
Sector *	58 Neutral	$12.60B	5.37	-2.71%	5.54%	5.88%	-56.09%
1911	46 Neutral	$2.37B	―	-2.94%	―	12.09%	60.49%

China Renaissance Holdings Corporate Events

China Renaissance Reports 2024 Financial Results with Continued Losses

China Renaissance Holdings Limited reported its audited consolidated annual results for the year ending December 31, 2024, showing a decrease in total revenue from RMB 1,006,094,000 in 2023 to RMB 777,104,000 in 2024. Despite a reduction in operating loss from RMB 197,817,000 in 2023 to RMB 41,640,000 in 2024, the company still faced a significant loss for the year attributable to owners, amounting to RMB 179,017,000. The company uses a non-IFRS measure of adjusted net loss to provide a clearer picture of its operating performance, which showed an adjusted net loss of RMB 300,837,000 for 2024. This financial performance indicates challenges in maintaining profitability and may impact stakeholder confidence.

China Renaissance Holdings Schedules Board Meeting to Approve Annual Results

China Renaissance Holdings Limited has announced a board meeting scheduled for March 31, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation for a final dividend, which could impact shareholders and the company’s financial strategy moving forward.

China Renaissance Celebrates ZG Group’s Landmark Hong Kong Listing

China Renaissance Holdings Limited announced that ZG Group, an investee company of its Huaxing Growth Capital Fund, has successfully listed on the Hong Kong Stock Exchange through a De-SPAC transaction with Aquila Acquisition Corporation. This milestone marks ZG Group as the first mainland Chinese company to achieve a Hong Kong listing via the De-SPAC route, highlighting the investment prowess of China Renaissance and its commitment to supporting promising ventures.

China Renaissance Announces Key Leadership Change in Company Secretary Role

China Renaissance Holdings Limited announced the resignation of Mr. Yee, Ming Cheung Lawrence as the company secretary and authorized representative, effective February 12, 2025. Mr. Liu Chak Sing has been appointed as the new company secretary and authorized representative, bringing over 12 years of experience in legal and corporate finance matters. This transition is expected to continue the company’s commitment to compliance and corporate governance, ensuring smooth operations and maintaining confidence among stakeholders.