China Harmony Auto Holding Limited (3836) AI Stock Analysis

China Harmony Auto Holding Limited

(HKEX:3836)

Select Model

Rating:38Underperform

Price Target:HKD 0.38▼(-13.56% Downside)

Action:downgraded

Date:10/16/26

The score is driven primarily by weak financial performance, including persistent losses, rising leverage, and negative free cash flow. Bearish technical trends and an unfavorable earnings-based valuation further limit the outlook.

Positive Factors

Revenue reboundThe return to revenue growth shows that customer demand and dealership activity recovered after the prior-year decline. If sustained, renewed top-line momentum can improve operating leverage, support investment in the dealership network, and provide a foundation for restoring profitability over the next several quarters.

Negative Factors

Persistent unprofitabilityPersistent losses and a thin gross margin leave limited room to absorb operating pressures or reinvest in growth. The deterioration in operating results through 2025 suggests that the revenue rebound has not yet translated into durable earnings power, keeping profitability recovery a material execution challenge.

China Harmony Auto Holding Limited (3836) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 621.89M
Dividend Yield: ―
Average Volume (3M): 321.64K
Price to Earnings (P/E): -0.9
Beta (1Y): 1.11
Revenue Growth: 31.42%
EPS Growth: -181.28%
Country: Hong Kong
Employees: 7,345
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Dealerships

China Harmony Auto Holding Limited Business Overview & Revenue Model

Company Description

China Harmony Auto Holding Limited, an investment holding company, engages in the sale of automobiles in Mainland China, Hong Kong, and internationally. The company offers luxury and ultra-luxury vehicles under the BMW, MINI, Audi, Volvo, Land Rover,...

China Harmony Auto Holding Limited Financial Statement Overview

Summary

Revenue grew 9.7%, but persistent losses, rising leverage, negative ROE, and negative free cash flow indicate weak overall financial performance. The score is at the minimum range because the average of the provided income statement, balance sheet, and cash flow scores is below 37.

Income Statement

35Negative

Balance Sheet

45Neutral

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.55B	20.03B	15.62B	16.58B	16.32B	17.98B
Gross Profit	1.65B	1.18B	699.73M	964.03M	1.08B	1.75B
EBITDA	161.78M	343.46M	364.41M	305.43M	-1.06B	1.36B
Net Income	-633.30M	-634.99M	-291.07M	-252.19M	-1.63B	673.15M
Balance Sheet
Total Assets	13.94B	12.91B	12.25B	10.84B	10.80B	13.25B
Cash, Cash Equivalents and Short-Term Investments	2.16B	1.95B	1.12B	1.07B	1.19B	1.74B
Total Debt	7.02B	6.47B	4.74B	3.11B	2.99B	3.53B
Total Liabilities	8.88B	7.85B	6.99B	5.17B	4.78B	5.21B
Stockholders Equity	4.82B	4.81B	5.17B	5.57B	5.95B	7.97B
Cash Flow
Free Cash Flow	-1.14B	-309.61M	-779.36M	5.03M	397.59M	37.73M
Operating Cash Flow	-671.39M	263.63M	-166.84M	357.35M	781.12M	776.10M
Investing Cash Flow	61.58M	-252.65M	-623.78M	-389.50M	4.74M	-589.29M
Financing Cash Flow	1.59B	549.36M	873.31M	-184.08M	-1.08B	-271.94M

China Harmony Auto Holding Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price0.43

Price Trends

50DMA0.52Negative

100DMA0.58Negative

200DMA0.80Negative

Market Momentum

MACD-0.03Positive

RSI39.70Neutral

STOCH34.19Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3836, the sentiment is Negative. The current price of 0.43 is below the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.52, and below the 200-day MA of 0.80, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 34.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3836.

China Harmony Auto Holding Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:3836 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HK:2443	48Neutral	HKD 720.25M	-44.66	-1.49%	―	-41.33%	-148.34%
HK:3669	43Neutral	HKD 1.29B	-0.62	-20.16%	22.36%	-16.05%	45.22%
HK:1728	42Neutral	HKD 1.43B	-0.45	58.35%	―	1.77%	45.42%
HK:1268	41Neutral	HKD 390.41M	-1.58	-11.37%	13.54%	-17.65%	92.47%
HK:0881	40Underperform	HKD 5.28B	-1.73	-5.77%	30.61%	-5.03%	-198.49%
HK:3836	38Underperform	HKD 621.89M	-0.86	-13.15%	―	31.42%	-181.28%

* Consumer Cyclical Sector Average

Performance Comparison

HK:3836 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:3836	China Harmony Auto Holding Limited	0.42	-0.83	-66.27%
HK:3669	China Yongda Automobiles Services Holdings Limited	0.68	-0.99	-59.28%
HK:1268	China MeiDong Auto Holdings	0.29	-1.30	-81.72%
HK:1728	China Zhengtong Auto Services Holdings	0.14	0.00	0.00%
HK:0881	Zhongsheng Group Holdings Ltd.	2.21	-9.95	-81.78%
HK:2443	Autostreets Development Limited	0.86	-2.97	-77.47%

China Harmony Auto Holding Limited Corporate Events

China Harmony Auto Swings to Profit on Surging 2026 Interim Sales

Aug 31, 2026

China Harmony Auto reported a strong interim performance for the six months ended 30 June 2026, with revenue rising 26.1% year-on-year to RMB12.15 billion and new vehicle sales jumping 68.5% to 51,674 units. Gross profit surged 85% to RMB1.04 billion...

China Harmony Auto Sets Board Meeting to Approve Interim Results and Possible Dividend

Aug 19, 2026

China Harmony Auto Holding Limited has scheduled a board meeting for 31 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The directors will also consider the payment of an interim dividend, if any, and atte...

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: Oct 16, 2026

China Harmony Auto Holding Limited AI Stock Analysis