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Mexan Limited (HK:0022)
:0022
Hong Kong Market
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Mexan (0022) AI Stock Analysis

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HK:0022

Mexan

(0022)

Rating:50Neutral
Price Target:
HK$0.00
▼(-100.00% Downside)
The overall stock score is primarily influenced by significant financial challenges, including revenue decline and profitability issues. Technical analysis provides mixed signals, with short-term bullishness but longer-term weakness. Valuation is poor due to ongoing losses and lack of dividend yield.
Positive Factors
Manageable Leverage
A moderate debt-to-equity ratio indicates financial stability, allowing Mexan to navigate economic fluctuations without excessive financial strain.
Sustainability and Innovation
Mexan's commitment to sustainability and innovation positions it well for long-term growth, catering to evolving industry demands and maintaining competitive advantage.
Cash Flow Improvements
Positive free cash flow growth suggests Mexan is enhancing its cash generation ability, which is crucial for funding operations and investments despite profitability challenges.
Negative Factors
Negative Return on Equity
A negative ROE indicates poor financial performance, suggesting Mexan's current strategies are not effectively leveraging shareholder investments for growth.
Profitability Issues
Ongoing profitability issues highlight operational inefficiencies, threatening long-term viability and limiting reinvestment opportunities for growth.
Revenue Decline
A significant revenue decline undermines Mexan's market position and growth prospects, necessitating strategic adjustments to recover and sustain operations.

Mexan (0022) vs. iShares MSCI Hong Kong ETF (EWH)

Mexan Business Overview & Revenue Model

Company DescriptionMexan (0022) is a leading provider in the manufacturing sector specializing in high-quality precision components and systems primarily for the automotive and industrial markets. The company focuses on innovation and efficiency, offering a range of products including machined parts, assemblies, and custom-engineered solutions that meet stringent industry standards. With a commitment to sustainability and technological advancements, Mexan leverages its expertise to cater to both domestic and international clients.
How the Company Makes MoneyMexan generates revenue through multiple streams, primarily by manufacturing and selling precision components to various industries, including automotive and industrial sectors. The company operates on a B2B revenue model, where it supplies products to OEMs (Original Equipment Manufacturers) and Tier 1 suppliers. Key revenue streams include direct sales of machined parts, long-term contracts for custom engineering services, and partnerships with major automotive brands that ensure consistent demand for their products. Additionally, Mexan capitalizes on its innovation through R&D investments, enabling it to create advanced solutions that can command premium pricing, thus enhancing profitability.

Mexan Financial Statement Overview

Summary
The company faces significant financial challenges, with a steep revenue decline and ongoing profitability issues. Despite a stable balance sheet and some cash flow improvements, the negative return on equity and consistent losses are concerning.
Income Statement
30
Negative
The income statement reveals significant challenges, with a steep decline in revenue of 75% in the latest period. The company has consistently reported negative net income and EBIT margins, indicating ongoing profitability issues. Despite a positive gross profit margin, the overall financial health is weak due to substantial losses.
Balance Sheet
55
Neutral
The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the return on equity is negative, reflecting the company's inability to generate profits from its equity base. The equity ratio is stable, indicating a solid asset base, but the negative ROE remains a concern.
Cash Flow
45
Neutral
Cash flow analysis indicates some improvement, with positive free cash flow growth in the latest period. However, the operating cash flow to net income ratio is concerning, as it suggests cash flow issues relative to reported earnings. The free cash flow to net income ratio is positive, indicating some cash generation capability despite losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue150.52M37.59M176.94M126.36M27.52M24.49M
Gross Profit48.49M6.93M69.00M44.32M8.66M11.09M
EBITDA8.43M-12.17M13.48M-2.22M-22.99M-23.04M
Net Income-20.49M-32.02M-20.16M-23.77M-44.41M-43.26M
Balance Sheet
Total Assets511.62M546.92M555.23M602.36M536.21M557.98M
Cash, Cash Equivalents and Short-Term Investments39.68M40.30M46.95M50.21M21.38M26.76M
Total Debt93.71M87.70M121.46M119.14M81.74M61.68M
Total Liabilities142.71M199.05M176.41M203.15M113.07M90.23M
Stockholders Equity372.33M351.41M382.16M402.32M426.08M470.49M
Cash Flow
Free Cash Flow24.91M28.71M16.21M-26.61M-25.43M-12.18M
Operating Cash Flow26.94M29.18M18.23M-22.15M-16.46M-11.44M
Investing Cash Flow-1.46M518.00K-1.78M-6.24M-8.97M-737.00K
Financing Cash Flow-46.63M-36.90M-24.01M57.23M20.06M31.17M

Mexan Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.14
Price Trends
50DMA
0.16
Negative
100DMA
0.17
Negative
200DMA
0.09
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
46.65
Neutral
STOCH
47.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0022, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.16, and above the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.65 is Neutral, neither overbought nor oversold. The STOCH value of 47.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0022.

Mexan Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.48B7.30-0.05%2.85%2.87%-36.73%
52
Neutral
HK$142.64M-4.69%3.58%-87.78%
52
Neutral
HK$644.19M-0.66%3.97%41.51%
50
Neutral
HK$269.40M-5.36%19.05%-12.78%-50.72%
47
Neutral
HK$362.24M-19.01%-2.75%-17.31%
46
Neutral
HK$301.85M-4.72%3.58%-91.61%
€63.12M-28.68%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0022
Mexan
0.14
0.13
1300.00%
HK:0219
Shun Ho Property Investments Ltd
0.59
-0.08
-11.94%
HK:0253
Shun Ho Holdings Ltd
0.59
-0.10
-14.49%
HK:0201
Magnificent Hotel Investments Limited
0.07
0.01
16.67%
HK:0617
Paliburg Holdings Limited
0.32
-0.28
-46.67%
DE:RH6B
Regal Hotels International Holdings Limited
0.06
-0.22
-78.57%

Mexan Corporate Events

Mexan Limited Announces Special Interim Dividend
Apr 25, 2025

Mexan Limited has announced a special interim dividend for the financial year ending March 31, 2026. The ex-dividend date is set for May 13, 2025, with the record date on May 16, 2025, although the exact dividend amount and payment date are yet to be announced. This move reflects the company’s financial strategy and may impact shareholder value and investor relations.

Mexan Limited Schedules Board Meeting to Discuss Special Interim Dividend
Apr 25, 2025

Mexan Limited has announced a board meeting scheduled for May 9, 2025, to consider and approve a special interim dividend for its shareholders. If approved, the register of members will be closed from May 15 to May 16, 2025, and specific procedures for share transfers and handling of treasury shares will be implemented.

Mexan Limited Acquires Remaining Stake in Target Company
Apr 22, 2025

Mexan Limited has announced a major transaction involving the acquisition of the remaining 49% shareholding and all remaining sale loans of a target company for HK$10,823,124.95. This acquisition is part of Mexan’s strategy to enhance its internal control system, with an independent consultant appointed to conduct an annual review of risk management and internal control systems. The review will focus on connected and notifiable transaction management processes to ensure compliance with corporate governance codes, with findings to be disclosed in the company’s annual report.

Mexan Limited Updates VSD Special Dividend Payment Date
Apr 3, 2025

Mexan Limited has announced an update regarding their VSD Special Dividend, which is set at HKD 0.06 per share. The payment date for this special dividend has been updated to 29 April 2025, with the record date being 11 April 2025. This announcement may impact shareholders and stakeholders as it provides updated information on the dividend payout schedule.

Mexan Limited Completes Major Disposal and Announces Special Dividend
Apr 2, 2025

Mexan Limited has announced the completion of a very substantial disposal (VSD) and the subsequent distribution of a special dividend to its shareholders. The VSD completion, approved by shareholders, signifies a strategic move for the company, potentially impacting its financial standing and shareholder value. The special dividend will be distributed on April 29, 2025, to shareholders registered by April 11, 2025, reflecting the company’s commitment to returning value to its investors.

Mexan Limited Updates VSD Special Dividend Payment Date
Apr 2, 2025

Mexan Limited has announced an update to its previously declared VSD Special Dividend, with a payment of HKD 0.06 per share. The ex-dividend date is set for April 8, 2025, and the payment will be made on April 29, 2025, following shareholders’ approval on March 25, 2025. This announcement reflects Mexan Limited’s commitment to providing returns to its shareholders, potentially enhancing its attractiveness to investors and maintaining its competitive position in the market.

Mexan Limited Withdraws Proposed Special Dividend
Mar 26, 2025

Mexan Limited, a company listed on the Hong Kong Stock Exchange, announced the withdrawal of its proposed VSA Special Dividend. The decision follows the failure to pass Ordinary Resolution No. 3 at the Special General Meeting, which was a condition precedent for the VSA Completion. As a result, the VSA will not proceed, and the special dividend of HKD 0.06 per share will not be distributed, impacting shareholders who were anticipating this payout.

Mexan Limited Announces Special General Meeting Results
Mar 25, 2025

Mexan Limited held a Special General Meeting on March 25, 2025, where shareholders voted on several resolutions. The resolutions to approve the VSD and VSD Special Dividend were passed with overwhelming support, while the resolution to approve the VSA Sale and Purchase Agreement was not passed due to a lack of majority support. The outcome of these votes reflects the company’s strategic decisions and shareholder interests, impacting its future operations and financial strategies.

Mexan Limited Declares Special Dividend
Mar 25, 2025

Mexan Limited, a company listed on the Hong Kong Stock Exchange, has announced a special cash dividend of HKD 0.06 per share, termed as the VSD Special Dividend. This announcement, dated March 25, 2025, updates previous communications by specifying the record date as April 11, 2025, with the book closure period from April 10 to April 11, 2025. The ex-dividend date is set for April 8, 2025, and the payment date will be announced later. This move reflects Mexan Limited’s commitment to delivering shareholder value, potentially enhancing its market position and investor confidence.

Mexan Limited Announces Special General Meeting for Key Resolutions
Feb 25, 2025

Mexan Limited, a company incorporated in Bermuda, has announced a special general meeting to be held on March 25, 2025, in Hong Kong. The meeting will address several resolutions, including the approval of the VSD and VSA Sale and Purchase Agreements and the declaration of special dividends contingent on the completion of these agreements. These resolutions, if passed, will authorize directors to execute necessary actions to implement the agreements and dividends, potentially impacting the company’s financial operations and shareholder returns.

Mexan Limited Announces Special Cash Dividend Amid Major Transactions
Feb 25, 2025

Mexan Limited, a company listed on the Hong Kong Stock Exchange, has announced a special cash dividend of HKD 0.06 per share, pending shareholder approval on March 25, 2025. This announcement is part of a larger transaction involving a very substantial disposal and acquisition, which may impact the company’s financial positioning and provide returns to stakeholders.

Mexan Limited Announces Special Dividend Amid Strategic Transactions
Feb 25, 2025

Mexan Limited, a company listed on the Hong Kong Stock Exchange, has announced a special dividend of HKD 0.06 per share as part of a very substantial disposal and acquisition transaction. This update highlights the date of shareholders’ approval set for March 25, 2025, and outlines the forthcoming announcement of key dates related to the dividend distribution, signaling a strategic move that may impact the company’s financial structure and shareholder value.

Mexan Acquires Full Ownership to Streamline Operations and Strengthen Market Position
Feb 10, 2025

Mexan, a company involved in the trading of building materials and fit-out construction projects, has announced the reclassification of a notifiable transaction as a major transaction following the acquisition of full ownership of a target company. This acquisition, completed at a nominal cost, is strategically aimed at enhancing operational control and aligning with long-term goals in the construction industry. The move is expected to improve revenue and client base, despite a segment loss due to impairment losses. With the elimination of minority shareholder constraints, Mexan can implement effective turnaround strategies, supported by a growing client base and confirmed orders.

Mexan Limited Announces Major Transactions and Special Dividends
Feb 7, 2025

Mexan Limited has announced a very substantial disposal and acquisition, along with a connected transaction, which will culminate in a proposed declaration of VSD and VSA special dividends. The company declared a special dividend of HKD 0.06 per share, although the dates for shareholders’ approval and the payment schedule are yet to be announced. This announcement could significantly impact the company’s financial strategy and stakeholder returns.

Mexan Company Announces Strategic Transactions and Special Dividends
Feb 7, 2025

Mexan Company has announced agreements for a substantial disposal and a substantial acquisition, alongside connected transactions, with plans to declare special dividends contingent upon shareholder approval and completion of the transactions. These moves, involving the sale and purchase of properties and shares, have significant implications for the company’s financial positioning and require careful consideration by stakeholders due to the conditional nature of the transactions and potential impacts on share dividends.

Mexan Limited Announces Major Transactions and Special Dividend
Feb 7, 2025

Mexan Limited, a company listed on the Hong Kong Stock Exchange, has announced a very substantial disposal and acquisition, along with a connected transaction. As part of this transaction, the company plans to declare special dividends, specifically a VSA Special Dividend of HKD 0.06 per share. The announcement, made on February 7, 2025, outlines significant financial maneuvers that could impact stakeholders, although specific dates for shareholder approval, ex-dividend, and payment are yet to be disclosed.

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: Sep 05, 2025