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China Rongzhong Financial Holdings Company Limited
(3963)
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Rating:43Neutral
Price Target:
HK$0.12
â–Ľ(-8.46% Downside)
Action:Reiterated
Date:07/28/26
The score is held down primarily by weak financial performance—persistent losses and a stressed balance sheet with very high leverage—despite the support of positive operating cash flow. Technicals add further pressure as the stock trades below major moving averages, while valuation is only neutral because a negative P/E (losses) limits the case for attractiveness and no dividend yield is provided.
Positive Factors
Operating Cash Flow
Consistent positive operating cash flow (~17–30M across FY2023–FY2026) provides a durable source of liquidity that supports day-to-day operations and debt servicing even while accounting losses persist. Over a 2–6 month horizon this reduces immediate solvency pressure and gives management runway to execute restructuring or deleveraging plans.
Negative Factors
Very High Leverage
Leverage jumping to ~6.2x debt-to-equity materially reduces financial flexibility for a credit-services firm. Elevated leverage increases refinancing and default risk, raises funding costs, and limits capacity to originate loans or weather credit losses. This structural constraint will hinder strategic options and resilience over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating Cash Flow
Consistent positive operating cash flow (~17–30M across FY2023–FY2026) provides a durable source of liquidity that supports day-to-day operations and debt servicing even while accounting losses persist. Over a 2–6 month horizon this reduces immediate solvency pressure and gives management runway to execute restructuring or deleveraging plans.
Read all positive factors
China Rongzhong Financial Holdings Company Limited (3963) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$74.03M
Dividend YieldN/A
Average Volume (3M)6.33K
Price to Earnings (P/E)―
Beta (1Y)0.44
Revenue Growth1.99%
EPS Growth-21.32%
CountryHK
Employees115
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-0.02
Shares Outstanding606,802,550
10 Day Avg. Volume7,000
30 Day Avg. Volume6,333
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)10.78
Price to Sales (P/S)1.16
P/FCF Ratio-11.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
China Rongzhong Financial Holdings Company Limited Business Overview & Revenue Model
Company Description
China Rongzhong Financial Holdings Company Limited, an investment holding company, provides financial leasing services in China, Hong Kong, and Singapore. The company focuses on financing the needs of SMEs in Hubei province. It also provides finan...
How the Company Makes Money
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China Rongzhong Financial Holdings Company Limited Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
22
Negative
Cash Flow
45
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 85.16M | 69.42M | 89.00M | 51.06M | 35.12M |
| Gross Profit | 24.88M | 540.00K | 18.95M | 51.06M | 10.45M |
| EBITDA | 13.36M | 10.34M | 9.61M | 12.52M | -532.20M |
| Net Income | -10.04M | -8.11M | -9.62M | -124.61M | -567.55M |
Balance Sheet | |||||
| Total Assets | 81.82M | 85.55M | 84.69M | 93.64M | 433.92M |
| Cash, Cash Equivalents and Short-Term Investments | 10.28M | 7.97M | 6.97M | 14.57M | 15.48M |
| Total Debt | 56.77M | 51.21M | 40.03M | 62.71M | 778.64M |
| Total Liabilities | 68.13M | 67.58M | 66.95M | 118.64M | 1.13B |
| Stockholders Equity | 9.17M | 17.34M | 18.46M | -31.29M | -701.43M |
Cash Flow | |||||
| Free Cash Flow | -8.26M | -12.74M | -15.06M | 473.00K | -6.45M |
| Operating Cash Flow | 17.54M | 18.64M | 22.72M | 29.82M | 2.70M |
| Investing Cash Flow | -14.86M | -19.98M | -25.59M | -12.67M | 2.05M |
| Financing Cash Flow | -814.00K | 2.09M | -4.04M | -18.87M | -2.56M |
China Rongzhong Financial Holdings Company Limited Technical Analysis
Negative
0.13
Price Trends
0.13
Negative
0.14
Negative
0.15
Negative
Market Momentum
>-0.01
Negative
4.12
Positive
31.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3963, the sentiment is Negative. The current price of 0.13 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.13, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 4.12 is Positive, neither overbought nor oversold. The STOCH value of 31.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3963.
China Rongzhong Financial Holdings Company Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$594.00M | 12.91 | 4.89% | 5.25% | -17.07% | -5.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | HK$336.30M | 5.31 | 2.66% | 4.88% | -2.05% | 14.16% | |
53 Neutral | HK$442.35M | -0.53 | -19.32% | 26.04% | -32.03% | -235.24% | |
46 Neutral | HK$76.90M | -1.27 | -13.09% | 4.37% | -76.61% | -529.32% | |
43 Neutral | HK$74.03M | -7.39 | -87.70% | ― | 1.99% | -21.32% |
* Financial Sector Average
HK:3963
China Rongzhong Financial Holdings Company Limited
0.12
-0.13
-51.20%
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1.49
0.69
86.95%
HK:2003
VCREDIT Holdings Limited
0.96
-2.26
-70.19%
HK:6866
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0.29
-0.04
-10.94%
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FY Financial (Shenzhen) Co., Ltd. Class H
0.21
-0.09
-29.33%
China Rongzhong Financial Holdings Company Limited Corporate Events
China Rongzhong Sets AGM to Seek Fresh Capital and Buyback Mandates
Jul 23, 2026
China Rongzhong Financial Holdings has called its annual general meeting for 9 September 2026 in Hong Kong, where shareholders will review the audited financial statements for the year ended 31 March 2026 and consider the re-election of one execut...
China Rongzhong Narrows Overall Loss Despite Higher Shareholders’ Deficit
Jun 26, 2026
China Rongzhong Financial Holdings reported audited revenue of HK$85.4 million for the year ended 31 March 2026, slightly up from HK$83.5 million a year earlier, reflecting stable performance in its core financial services operations. The Group...
China Rongzhong Further Extends Deadline for Convertible Bond Subscription
Jun 17, 2026
China Rongzhong Financial Holdings Company Limited has moved to further delay the timetable for a planned connected transaction involving the issue of a convertible bond under a specific mandate. The company is relying on this capital-raising inst...
China Rongzhong schedules June board meeting to approve annual results and consider dividend
Jun 12, 2026
China Rongzhong Financial Holdings Company Limited has scheduled a board meeting for 26 June 2026 to review and approve the group’s annual results for the financial year ended 31 March 2026. The board will also consider whether to recommend ...
China Rongzhong Updates Corporate Contact Number and Confirms Board Line-up
Jun 5, 2026
China Rongzhong Financial Holdings Company Limited, a Cayman Islands–incorporated financial services company listed on the Hong Kong Stock Exchange, continues to be led by executive director Wong Emilie Hoi Yan, alongside a board of non-exec...
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.