Centenary United Holdings Limited (1959) AI Stock Analysis

• Market Cap: HK$93.51M
• Dividend Yield: N/A
• Average Volume (3M): 58.33K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.33
• Revenue Growth: -41.19%
• EPS Growth: 30.99%
• Country: HK
• Employees: 526
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.03
• Shares Outstanding: 508,202,000
• 10 Day Avg. Volume: 40,600
• 30 Day Avg. Volume: 58,333
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 177.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, with declining revenue and profitability posing significant risks. Technical analysis provides some short-term optimism, but the long-term trend remains negative. Valuation concerns due to a negative P/E ratio further weigh down the score.

Centenary United Holdings Limited Business Overview & Revenue Model

Company Description

Centenary United Holdings Limited operates as an integrated auto service provider in Zhongshan, the People's Republic of China. The company sells new and used motor vehicles, as well as accessories, spare parts, car care services, and used vehicle warranty services; and provides repair and maintenance, insurance agency, and other services. It focuses on new energy brand mid-to-high end sino-foreign and international brands. The company also provides enterprise management information and enterprise investment consulting services. It operates through 4S dealership outlets, quick fix service points, and an insurance agency company in Zhongshan. The company was founded in 1999 and is headquartered in Zhongshan, the People's Republic of China.

How the Company Makes Money

Centenary United Holdings Limited generates revenue through a diversified investment approach, primarily focusing on strategic acquisitions and management of assets across its core sectors. The company's revenue streams include returns from real estate investments, dividends and capital gains from equity holdings in consumer goods companies, and interest income from financial investments. Additionally, Centenary engages in partnerships and joint ventures to enhance its market presence and leverage synergies across its portfolio, contributing to its financial performance. The company's ability to navigate market fluctuations and its strategic allocation of resources play a significant role in its earnings.

Centenary United Holdings Limited Financial Statement Overview

Summary

The company is experiencing severe financial difficulties, with declining revenue, negative net income, and negative cash flow. High leverage and negative margins indicate significant operational inefficiencies and financial instability.

Income Statement

The income statement shows a concerning trend with declining total revenue over recent years, dropping from approximately $2.07 billion in 2019 to $1.24 billion in 2024. Gross profit margin has decreased significantly, indicating potential pricing or cost issues. Net income has turned negative in recent years, with a net loss of $89.7 million in 2024. The company has also been struggling with negative EBIT and EBITDA margins, reflecting operational inefficiencies. Revenue growth rate is negative, highlighting a challenging environment for the company.

Balance Sheet

The balance sheet shows a weakening financial position. The debt-to-equity ratio has increased over the years, indicating rising leverage, which poses a risk in a declining revenue environment. Stockholders' equity has decreased, and the equity ratio has weakened, reflecting reduced financial stability. Return on equity has turned negative due to losses, further impacting investor confidence.

Cash Flow

Cash flow statements reveal significant challenges, with negative free cash flow in recent years indicating a lack of available funds for reinvestment or debt repayment. Operating cash flow has been inconsistent and is currently at zero, raising concerns about the company's ability to generate cash from its core operations. The free cash flow to net income ratio is unfavorable, and the absence of positive cash flow growth compounds the financial strain.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.24B	1.62B	2.00B	2.05B	1.91B
Gross Profit	16.25M	90.06M	100.44M	118.96M	130.40M
EBITDA	-86.42M	14.63M	-24.25M	7.70M	41.13M
Net Income	-89.73M	-52.36M	-23.63M	2.68M	21.43M
Balance Sheet
Total Assets	524.00M	860.99M	896.72M	801.90M	815.05M
Cash, Cash Equivalents and Short-Term Investments	79.00M	109.34M	94.13M	69.64M	42.48M
Total Debt	276.31M	278.55M	252.92M	253.38M	237.25M
Total Liabilities	423.85M	671.52M	654.79M	538.64M	559.16M
Stockholders Equity	100.07M	188.96M	240.53M	261.67M	253.79M
Cash Flow
Free Cash Flow	131.01M	-7.19M	-71.72M	-17.32M	120.06M
Operating Cash Flow	150.77M	52.05M	1.40M	48.83M	145.15M
Investing Cash Flow	6.33M	-42.46M	-55.09M	-51.36M	-19.94M
Financing Cash Flow	-138.48M	-31.24M	70.76M	28.10M	-115.18M

Centenary United Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1959, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.22, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 23.75 is Positive, neither overbought nor oversold. The STOCH value of 1.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1959.

Centenary United Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6909	53 Neutral	HK$329.92M	-5.99	-0.92%	10.38%	-14.32%	-192.28%
1771	52 Neutral	HK$186.00M	-0.85	-9.45%	―	-24.42%	-115.68%
1959	47 Neutral	HK$93.51M	―	-48.30%	―	-41.19%	30.99%
3836	46 Neutral	HK$2.30B	-9.51	-5.63%	2.36%	11.33%	56.94%
0970	44 Neutral	HK$303.91M	-0.32	-74.34%	―	-36.67%	-6.20%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Centenary United Holdings Limited Corporate Events

Centenary United Holdings Limited Reports Mixed Interim Results for H1 2025

Centenary United Holdings Limited reported a significant decrease in revenue by approximately 38.5% to RMB454.2 million for the first half of 2025 compared to the same period in 2024. Despite this, the company saw an increase in gross profit by 61.9% and a reduction in losses, with the loss attributable to owners decreasing from RMB52.4 million to RMB16.0 million, indicating improved operational efficiency.

The most recent analyst rating on (HK:1959) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Centenary United Holdings Limited stock, see the HK:1959 Stock Forecast page.

Centenary United Holdings Limited Announces Auditor Change to Enhance Cost-Effectiveness

Centenary United Holdings Limited has announced a change in its auditing firm, replacing Ernst & Young with Prism Hong Kong Limited, effective from August 27, 2025. The decision was made to reduce audit fees and enhance cost-effectiveness, with the Board and Audit Committee confident that Prism’s appointment will maintain audit quality and benefit shareholders.

The most recent analyst rating on (HK:1959) stock is a Sell with a HK$0.50 price target. To see the full list of analyst forecasts on Centenary United Holdings Limited stock, see the HK:1959 Stock Forecast page.

Centenary United Holdings Expands on Property Leasing Framework

Centenary United Holdings Limited announced additional details regarding its Property Leasing Framework Agreement, which is part of its continuing connected transactions. The agreement involves leasing properties from Zhongshan New Century Pioneering Automobile Co., Ltd. and its subsidiaries to meet the Group’s operational needs. The leases are set on commercial terms favorable to the Group, with rent determined through arm’s length negotiation based on development costs and prevailing market conditions.

Centenary United Holdings to Review Interim Results and Dividend

Centenary United Holdings Limited has announced a board meeting scheduled for August 28, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation for an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Centenary United Holdings Reports Reduced Loss Amid Revenue Decline

Centenary United Holdings Limited announced a significant reduction in its net loss for the first half of 2025, despite a decrease in revenue due to a decline in new car sales and a competitive price war in the automotive market. The company’s improved new car inventory structure, better gross profit margins, and reduced administrative expenses contributed to narrowing the net loss by 69% compared to the same period last year.

Centenary United Holdings Limited Addresses Director’s Involvement in External Winding-Up Order

Centenary United Holdings Limited has announced that Mr. Li Wai Keung, an independent non-executive director of the company, was involved in a separate matter concerning China South City Holdings Limited, which was ordered to be wound up by the High Court of Hong Kong. Mr. Li has confirmed no involvement in the winding-up proceedings, and the board of Centenary United Holdings Limited has stated that this event does not impact the company’s operations or Mr. Li’s role within the company.

Centenary United Holdings Limited Establishes Nomination Committee Framework

Centenary United Holdings Limited has outlined the terms of reference for its Nomination Committee, which was established by a board resolution in 2019. The committee, consisting of at least three directors, primarily independent non-executive directors, is tasked with overseeing nominations and ensuring compliance with listing rules. This structure aims to enhance governance and ensure diverse representation within the board, potentially impacting the company’s strategic direction and stakeholder confidence.