Mexan (0022) AI Stock Analysis

• Market Cap: HK$399.18M
• Dividend Yield: N/A
• Average Volume (3M): 6.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 127
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Travel Lodging
• EPS (TTM): 0.19
• Shares Outstanding: 1,966,387,800
• 10 Day Avg. Volume: 14,366,788
• 30 Day Avg. Volume: 6,038,187
• PEG Ratio: -0.15
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 7.22
• P/FCF Ratio: 9.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$0.20 ▼(-4.76% Downside)

The score is primarily held back by weak financial performance, led by a sharp revenue decline and persistent losses. Technicals provide some offset with mildly constructive longer-term positioning and neutral-to-slightly positive momentum. Valuation remains constrained by negative earnings and the lack of a dividend yield.

Positive Factors

Diversified Revenue Model

A diversified go-to-market mix across OEM contracts, aftermarket channels and JVs reduces single-customer concentration risk and smooths revenue volatility. Long-term OEM contracts provide predictable order flow and JVs support product development, aiding stable mid-term cash generation.

Free Cash Flow Improvement

Improving free cash flow despite losses indicates operational cash conversion resilience. Sustained positive FCF allows reinvestment in R&D and capex, funds debt servicing and supports strategic initiatives, giving the company more optionality to pursue long-term recovery and product development.

Manageable Leverage

A moderate leverage profile with a stable equity base preserves financial flexibility, reducing refinancing and solvency risk during cyclical downturns. This balance sheet posture supports continued investment in operations and cushions execution while management addresses profitability.

Negative Factors

Severe Revenue Decline

A three-quarter magnitude revenue drop signals structural demand or contract losses, undermining scale economics and fixed-cost absorption. Persistent top-line contraction erodes market position, weakens supplier and customer relationships, and makes recovery reliant on sustained new contract wins.

Ongoing Profitability Losses

Repeated negative EBIT and net income imply inability to convert revenue into sustainable profits. This undermines reinvestment capacity and returns to equity holders, risks further equity dilution or cost-cutting, and may impede long-term competitiveness without structural margin improvement.

Weak Cash Quality vs. Earnings

A discordant operating cash flow to net income ratio suggests earnings quality issues and potential working capital strains. If cash generation lags reported results, the firm may face tighter liquidity under stress, limiting its ability to fund operations, capex, or strategic initiatives long term.

Mexan Business Overview & Revenue Model

Company Description

Mexan Limited, an investment holding company, engages in the hotel operation. The company operates with Winland 800 Hotel, which consists of 800 rooms in Tsing Yi, New Territories. It also engages in the property holding, and self-laundry activities. The company was incorporated in 1991 and is based in Tsing Yi, Hong Kong. Mexan Limited is a subsidiary of Winland Wealth (BVI) Limited.

How the Company Makes Money

Mexan generates revenue through a diversified model that includes direct sales of automotive components to original equipment manufacturers (OEMs) and aftermarket retailers. The company capitalizes on long-term contracts with key automotive manufacturers, ensuring a steady stream of income from bulk orders. In addition to direct sales, Mexan also engages in joint ventures and partnerships with technology firms to develop advanced automotive solutions, providing additional revenue through collaborative projects. The company's strong emphasis on research and development allows it to introduce new products that meet industry standards, thereby attracting more clients and expanding its market share.

Mexan Financial Statement Overview

Summary

Weak fundamentals: revenue fell 75% in the latest period and profitability remains poor with consistently negative net income and EBIT margins. The balance sheet leverage appears manageable, and cash flow shows some improvement with positive free cash flow growth, but overall financial health is pressured by ongoing losses and negative ROE.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	150.52M	37.59M	176.94M	126.36M	27.52M	24.49M
Gross Profit	48.49M	6.93M	69.00M	44.32M	8.66M	11.09M
EBITDA	8.43M	-12.17M	13.48M	-2.91M	-23.39M	-23.59M
Net Income	-20.49M	-32.02M	-20.16M	-23.77M	-44.41M	-43.26M
Balance Sheet
Total Assets	511.62M	546.92M	555.23M	602.36M	536.21M	557.98M
Cash, Cash Equivalents and Short-Term Investments	39.68M	40.30M	46.95M	50.21M	21.38M	26.76M
Total Debt	93.71M	87.70M	121.46M	119.14M	81.74M	61.68M
Total Liabilities	142.71M	199.05M	176.41M	203.15M	113.07M	90.23M
Stockholders Equity	372.33M	351.41M	382.16M	402.32M	426.08M	470.49M
Cash Flow
Free Cash Flow	24.91M	28.71M	16.21M	-26.61M	-25.43M	-12.18M
Operating Cash Flow	26.94M	29.18M	18.23M	-22.15M	-16.46M	-11.44M
Investing Cash Flow	-1.46M	518.00K	-1.78M	-6.24M	-8.97M	-737.00K
Financing Cash Flow	-46.63M	-36.90M	-24.01M	57.23M	20.06M	31.17M

Mexan Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0022, the sentiment is Neutral. The current price of 0.21 is below the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.17, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0022.

Mexan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0219	61 Neutral	HK$368.36M	-1.14	-4.72%	―	3.58%	-91.61%
0201	56 Neutral	HK$635.24M	-22.90	-0.66%	―	3.97%	41.51%
0617	49 Neutral	HK$271.96M	-0.16	-19.01%	―	-2.75%	-17.31%
0253	49 Neutral	HK$157.15M	-0.82	-4.69%	―	3.58%	-87.78%
0022	47 Neutral	HK$399.18M	-19.71	―	―	―	―
0078	40 Neutral	HK$485.34M	-0.27	-29.62%	―	-0.60%	34.74%

Mexan Corporate Events

Mexan Flags Share Price Surge as Controlling Shareholder Reviews Stake

Mexan Limited has issued a clarification after noting recent sharp increases in its share price and heightened press coverage related to the stake held by its controlling shareholder. Following internal enquiries, the company said it has been informed that the controlling shareholder may be considering a preliminary internal review of its shareholding in Mexan, but stressed that there is currently no information arising from this that requires disclosure under Hong Kong listing rules. The board pledged to continue observing all disclosure obligations and cautioned shareholders and potential investors to exercise care when trading the company’s securities, underscoring that any potential changes in ownership remain at an early and uncertain stage.

The most recent analyst rating on (HK:0022) stock is a Hold with a HK$0.15 price target. To see the full list of analyst forecasts on Mexan stock, see the HK:0022 Stock Forecast page.

Mexan Limited Reports Strong Interim Financial Results

Mexan Limited has reported its unaudited interim results for the six months ending September 30, 2025, showing significant financial improvement. The company’s revenue increased by 75% to HK$25,079,000, and it achieved a gross profit of HK$8,592,000, a substantial rise from the previous year. The profit attributable to the owners of the company surged to HK$381,746,000, marking a remarkable turnaround from the loss reported in the same period last year. This financial performance highlights Mexan’s strengthened market position and operational efficiency, indicating positive implications for stakeholders.

Mexan Limited Schedules Board Meeting to Approve Interim Results

Mexan Limited has announced a board meeting scheduled for November 19, 2025, where the interim financial results for the six months ending September 30, 2025, will be approved. This announcement is crucial for stakeholders as it will provide insights into the company’s financial health and operational performance during this period.