Zhejiang Changan Renheng Technology Co., Ltd. Class H (8139) AI Stock Analysis

Zhejiang Changan Renheng Technology Co., Ltd. Class H

(HKEX:8139)

Select Model

Rating:62Neutral

Price Target:HKD 1.00▼(-3.85% Downside)

Action:reiterated

Date:10/03/26

The score is driven primarily by improving financial performance (strong TTM revenue rebound and return to profitability) but tempered by higher leverage and a mixed cash flow track record. Technicals are neutral with only partial trend confirmation, while valuation supports the score due to a very low P/E.

Positive Factors

Revenue and profitability reboundThe sharp TTM revenue rebound and return to positive net income indicate renewed business momentum after weaker periods. If maintained, improved operating profitability can strengthen internal funding capacity, support reinvestment, and provide a more durable earnings base over the next several quarters.

Negative Factors

Elevated leverageDebt running materially above equity reduces financial flexibility and increases the company’s exposure to weaker margins or slower growth. A higher leverage burden can also constrain investment and capital allocation, making sustained earnings improvement more important to preserve balance-sheet stability.

Zhejiang Changan Renheng Technology Co., Ltd. Class H (8139) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 38.40M
Dividend Yield: ―
Average Volume (3M): 41.30K
Price to Earnings (P/E): 1.4
Beta (1Y): -0.13
Revenue Growth: 14.13%
EPS Growth: ―
Country: Hong Kong
Employees: 225
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals

Zhejiang Changan Renheng Technology Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Zhejiang Chang'an Renheng Technology Co., Ltd., along with its subsidiaries, specializes in the development, manufacturing, and sale of advanced bentonite fine chemicals within the People's Republic of China. Their product range is extensive, featuri...

Zhejiang Changan Renheng Technology Co., Ltd. Class H Financial Statement Overview

Summary

Income statement momentum is improving (TTM revenue up ~29% with a return to positive net income and mid-single-digit operating profitability), but the balance sheet is meaningfully leveraged (TTM debt-to-equity ~1.47) and cash flow has been historically inconsistent with only modest operating cash flow relative to debt.

Income Statement

74Positive

Balance Sheet

56Neutral

Cash Flow

49Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	277.95M	207.44M	194.86M	162.28M	150.82M	144.40M
Gross Profit	100.46M	78.74M	80.10M	65.36M	55.29M	60.04M
EBITDA	33.73M	20.81M	24.86M	24.02M	17.72M	25.88M
Net Income	23.51M	-76.35K	1.27M	2.30M	1.42M	7.43M
Balance Sheet
Total Assets	379.03M	360.40M	337.98M	292.85M	278.15M	248.60M
Cash, Cash Equivalents and Short-Term Investments	45.96M	48.48M	32.09M	19.95M	23.27M	21.63M
Total Debt	194.38M	198.41M	174.73M	111.50M	120.38M	93.56M
Total Liabilities	246.23M	241.62M	219.29M	175.42M	163.03M	134.89M
Stockholders Equity	132.40M	118.68M	118.69M	117.43M	115.13M	113.71M
Cash Flow
Free Cash Flow	9.37M	-9.27M	-25.81M	7.54M	-8.83M	-1.56M
Operating Cash Flow	12.42M	15.66M	7.85M	35.08M	14.81M	12.83M
Investing Cash Flow	4.88M	-10.13M	-41.18M	-23.90M	-23.52M	-14.25M
Financing Cash Flow	716.27K	16.23M	34.68M	-15.71M	19.82M	-115.04K

Zhejiang Changan Renheng Technology Co., Ltd. Class H Technical Analysis

Technical Analysis SentimentNegative

Last Price1.04

Price Trends

50DMA1.16Negative

100DMA1.17Negative

200DMA1.25Negative

Market Momentum

MACD-0.04Positive

RSI27.40Positive

STOCH54.13Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8139, the sentiment is Negative. The current price of 1.04 is below the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.16, and below the 200-day MA of 1.25, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 27.40 is Positive, neither overbought nor oversold. The STOCH value of 54.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8139.

Zhejiang Changan Renheng Technology Co., Ltd. Class H Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:8139 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:0746	77Outperform	HKD 3.56B	6.26	8.77%	7.99%	2.52%	2.16%
HK:0189	73Outperform	HKD 16.00B	7.63	12.67%	3.03%	7.79%	48.48%
HK:8139	62Neutral	HKD 64.90M	1.43	18.73%	―	14.13%	―
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HK:2198	59Neutral	HKD 4.12B	4.52	13.63%	4.32%	0.90%	16.54%
HK:0609	53Neutral	HKD 860.85M	14.61	2.08%	3.05%	16.60%	-12.13%
HK:0827	39Underperform	HKD 217.87M	-0.25	214.56%	―	1.56%	-21.85%

* Basic Materials Sector Average

Performance Comparison

HK:8139 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:8139	Zhejiang Changan Renheng Technology Co., Ltd. Class H	1.04	-0.49	-32.03%
HK:0827	Ko Yo Chemical (Group) Limited	0.03	0.01	18.52%
HK:0609	Tiande Chemical Holdings Limited	0.98	-0.31	-24.32%
HK:0189	Dongyue Group Limited	9.89	0.27	2.84%
HK:2198	China Sanjiang Fine Chemicals Co., Ltd.	3.47	1.13	48.29%
HK:0746	Lee & Man Chemical Co. Ltd.	4.38	-0.25	-5.34%

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 03, 2026

Zhejiang Changan Renheng Technology Co., Ltd. Class H AI Stock Analysis