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China Hongguang Holdings Limited (8646) AI Stock Analysis

HK:8646

China Hongguang Holdings Limited

(HKEX:8646)

Select Model
Rating:74Outperform
Price Target:HKD 0.34â–²(0.30% Upside)
Action:upgraded
Date:10/24/26

The score is driven primarily by solid profitability and a conservative balance sheet, tempered by weak and inconsistent operating cash flow (low cash conversion). Technicals are supportive with price above major moving averages and positive momentum, while valuation is attractive due to the very low P/E.

Positive Factors
Revenue GrowthThe reacceleration in revenue indicates improving demand and renewed commercial momentum after a flat 2025. If sustained, stronger sales can support operating leverage, reinforce the company’s market position, and provide a broader base for future earnings and cash generation.
Negative Factors
Weak Cash ConversionThe large gap between reported earnings and operating cash flow raises concerns about earnings quality and the durability of cash generation. Persistently weak conversion can constrain self-funded investment, increase working-capital needs, and make accounting profits less economically useful.

China Hongguang Holdings Limited (8646) vs. iShares MSCI Hong Kong ETF (EWH)

-40%-20%0%20%40%60%80%HK:8646+34.53%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 233.40M
Dividend Yield
―
Average Volume (3M)
6.57M
Price to Earnings (P/E)
3.5
Beta (1Y)
-0.75
Revenue Growth
19.71%
EPS Growth
-29.05%
Country
Hong Kong
Employees
44
Sector
Industrials
Sector Strength
63
Industry
Construction Materials

China Hongguang Holdings Limited Business Overview & Revenue Model

Company Description

China Hongguang Holdings Limited functions as an investment holding enterprise, primarily engaged in the manufacturing and distribution of architectural glass solutions throughout the People's Republic of China. The company's offerings include a rang...

China Hongguang Holdings Limited Financial Statement Overview

Summary

Profitability and balance-sheet quality are solid (income statement score 78; balance sheet score 86) with strong margins and low leverage, but cash generation is a major weakness (cash flow score 45) due to historically inconsistent/negative operating cash flow and low cash conversion versus net income.

Income Statement

78Positive

Balance Sheet

86Very Positive

Cash Flow

45Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue318.62M242.58M242.20M217.14M208.66M203.07M
Gross Profit95.36M74.01M63.12M63.76M65.17M57.50M
EBITDA72.83M74.81M37.48M53.73M53.44M54.40M
Net Income51.79M57.04M21.14M35.73M34.56M39.00M
Balance Sheet
Total Assets693.38M563.96M468.69M439.01M407.38M323.96M
Cash, Cash Equivalents and Short-Term Investments20.47M34.62M61.99M89.52M68.15M12.93M
Total Debt59.48M52.49M72.57M79.29M81.24M53.19M
Total Liabilities209.69M96.48M126.90M121.10M138.07M123.38M
Stockholders Equity483.69M465.49M341.79M317.92M269.32M200.58M
Cash Flow
Free Cash Flow17.19M-13.58M12.21M-16.36M-57.87M4.80M
Operating Cash Flow17.19M-13.58M12.21M-10.11M-56.97M15.11M
Investing Cash Flow-10.27M02,000-6.24M-890.00K-10.30M
Financing Cash Flow12.14M44.83M-10.85M4.25M58.20M6.12M

China Hongguang Holdings Limited Technical Analysis

Technical Analysis SentimentPositive
Last Price0.34

Price Trends

50DMA0.28Positive
100DMA0.26Positive
200DMA0.25Positive

Market Momentum

MACD0.00Positive
RSI51.26Neutral
STOCH46.95Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8646, the sentiment is Positive. The current price of 0.34 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.28, and above the 200-day MA of 0.25, indicating a bullish trend. The MACD of 0.00 indicates Positive momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 46.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8646.

China Hongguang Holdings Limited Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

HK:8646 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:8646HK:864674OutperformHKD 234.90M3.5310.91%―19.71%-29.05%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
HK:9938HK:993861NeutralHKD 224.00M-44.80-2.42%―-14.83%-129.76%
HK:1653HK:165353NeutralHKD 661.62M-36.70-13.58%―4.31%-426.67%
HK:3313HK:331344NeutralHKD 95.28M-0.96-16.95%―6.83%77.80%
HK:1592HK:159240UnderperformHKD 199.79M-0.61118.96%―-50.93%43.67%

* Industrials Sector Average

Performance Comparison

0%100%200%HK:8646HK:9938HK:1592HK:1653HK:3313Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:8646 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:8646China Hongguang Holdings Limited0.300.0731.58%
HK:9938Wah Wo Holdings Group Limited0.220.12107.41%
HK:1592Anchorstone Holdings Limited0.14-0.06-29.59%
HK:1653MOS House Group Limited2.290.9672.18%
HK:3313ArtGo Holdings Ltd.0.67-0.78-53.76%
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 24, 2026