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

2 Followers

Zhejiang Changan Renheng Technology Co., Ltd. Class H

(HKEX:8139)

Select Model

Rating:64Neutral

Price Target:HKD 0.99▲(7.03% Upside)

Action:reiterated

Date:10/03/26

Attractive low P/E valuation and revenue growth momentum are the primary positives, tempered by elevated leverage on the balance sheet and mixed technical indicators.

Positive Factors

Revenue and profit reboundThe strong TTM revenue rebound alongside a return to profitability indicates improving demand and operating execution. If maintained, this recovery can rebuild earnings power, support reinvestment, and strengthen the company’s ability to compete over the next several quarters.

Negative Factors

Elevated and rising leverageDebt running above equity reduces financial flexibility and increases the company’s sensitivity to weaker margins or slower growth. Unless earnings and cash generation remain strong, the higher leverage can constrain investment choices and make balance-sheet repair a more persistent priority.

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

Market Cap: HKD 35.52M
Dividend Yield: ―
Average Volume (3M): 38.77K
Price to Earnings (P/E): 1.3
Beta (1Y): -0.15
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

Strong revenue growth of 29.3% and return to net profitability supported by improving cash flow, offset by rising debt-to-equity at 1.47 and history of volatile free cash flow.

Income Statement

72Positive

Balance Sheet

46Neutral

Cash Flow

58Neutral

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 Price0.93

Price Trends

50DMA1.10Negative

100DMA1.14Negative

200DMA1.24Negative

Market Momentum

MACD-0.05Positive

RSI12.28Positive

STOCH2.13Positive

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 0.93 is below the 20-day moving average (MA) of 1.02, below the 50-day MA of 1.10, and below the 200-day MA of 1.24, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 12.28 is Positive, neither overbought nor oversold. The STOCH value of 2.13 is Positive, 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	82Outperform	HKD 3.96B	6.74	8.77%	7.42%	2.52%	2.16%
HK:0189	73Outperform	HKD 15.44B	6.92	12.67%	3.35%	7.79%	48.48%
HK:8139	64Neutral	HKD 57.72M	1.28	18.73%	―	14.13%	―
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HK:2198	60Neutral	HKD 3.91B	4.12	13.63%	4.75%	0.90%	16.54%
HK:0609	45Neutral	HKD 847.67M	13.98	2.08%	3.19%	16.60%	-12.13%
HK:0827	39Underperform	HKD 242.69M	-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	0.93	-0.52	-36.21%
HK:0827	Ko Yo Chemical (Group) Limited	0.03	0.00	0.00%
HK:0609	Tiande Chemical Holdings Limited	0.94	-0.39	-29.38%
HK:0189	Dongyue Group Limited	8.96	-1.87	-17.30%
HK:2198	China Sanjiang Fine Chemicals Co., Ltd.	3.15	0.35	12.60%
HK:0746	Lee & Man Chemical Co. Ltd.	4.71	-0.69	-12.83%

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