Central China New Life Limited Fundamental Analysis (HKSE: 9983.HK)
Central China New Life Limited Fundamental Analysis (HKSE: 9983.HK)
Central China New Life Limited (HKSE: 9983.HK) shows weak financial fundamentals with a PE ratio of 18.02, profit margin of 0.72%, and ROE of 1.00%. The company generates $2.6B in annual revenue with weak year-over-year growth of -6.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 9983.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak9983.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent9983.HK trades at attractive valuation levels.
Growth Score
Weak9983.HK faces weak or negative growth trends.
Financial Health Score
Excellent9983.HK maintains a strong and stable balance sheet.
Profitability Score
Weak9983.HK struggles to sustain strong margins.
Key Financial Metrics
Is 9983.HK Expensive or Cheap?
P/E Ratio
9983.HK trades at 18.02 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 9983.HK's PEG of -0.23 indicates potential undervaluation.
Price to Book
The market values Central China New Life Limited at 0.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.57 times EBITDA. This is generally considered low.
How Well Does 9983.HK Make Money?
Net Profit Margin
For every $100 in sales, Central China New Life Limited keeps $0.72 as profit after all expenses.
Operating Margin
Core operations generate 1.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.00 in profit for every $100 of shareholder equity.
ROA
Central China New Life Limited generates $0.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Central China New Life Limited generates limited operating cash flow of $-526.19M, signaling weaker underlying cash strength.
Free Cash Flow
Central China New Life Limited generates weak or negative free cash flow of $-529.29M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.41 in free cash annually.
FCF Yield
9983.HK converts -1.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.010
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How 9983.HK Stacks Against Its Sector Peers
| Metric | 9983.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.02 | 25.88 | Better (Cheaper) |
| ROE | 1.00% | 807.00% | Weak |
| Net Margin | 0.72% | 2691.00% | Weak |
| Debt/Equity | 0.03 | -37.10 (disorted) | Distorted |
| Current Ratio | 1.49 | 39.34 | Neutral |
| ROA | 0.42% | 277.00% | Weak |
9983.HK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Central China New Life Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-11.41%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-68.64%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-254.10%
Industry Style: Income, Inflation Hedge, REIT
Declining