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Huajin International Flags Over RMB1.1 Billion Loss on Weak Demand and Restructuring Costs

Story Highlights
  • Huajin International expects a 2025 net loss above RMB1.18 billion, far exceeding 2024.
  • Weak demand, trade headwinds, cost pressures and restructuring deepen losses and weigh on revenue.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Huajin International Flags Over RMB1.1 Billion Loss on Weak Demand and Restructuring Costs

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Huajin International Holdings Ltd. ( (HK:2738) ) has issued an update.

Huajin International Holdings has warned that it expects a sharp escalation in losses for 2025, projecting a net loss attributable to shareholders of between RMB1.18 billion and RMB1.28 billion, compared with an audited net loss of about RMB91.2 million in 2024. The deterioration is driven by weak demand, intense competition, tariff-related trade volatility, high raw material costs that cannot be fully passed through, lower capacity utilization, and substantial impairment, credit loss, and inventory write-down charges.

The group also forfeited roughly RMB390 million in commitment fees and deposits after failing to meet minimum off-take terms, compounding pressure on margins and cash flow. In the second half of 2025 Huajin shifted its main model toward processing with supplied materials to reduce exposure to raw material price swings and capital intensity, but short-term customer adaptation and capacity adjustments reduced revenue further, deepening the expected net loss and signaling a challenging transition period for stakeholders.

The most recent analyst rating on (HK:2738) stock is a Hold with a HK$0.25 price target. To see the full list of analyst forecasts on Huajin International Holdings Ltd. stock, see the HK:2738 Stock Forecast page.

More about Huajin International Holdings Ltd.

Huajin International Holdings Ltd. is a Cayman Islands-incorporated company listed in Hong Kong. The group operates in the steel-related manufacturing and processing sector, producing downstream products that rely heavily on hot-rolled coil and international trade flows, and serves both domestic and export markets that are sensitive to tariffs, commodity prices, and capacity utilization trends.

Average Trading Volume: 175,020

Technical Sentiment Signal: Strong Sell

Current Market Cap: HK$125.4M

For an in-depth examination of 2738 stock, go to TipRanks’ Overview page.

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