Mexan (0022) AI Stock Analysis

• Market Cap: HK$285.13M
• Dividend Yield: N/A
• Average Volume (3M): 6.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• 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: 51 Neutral
• Price Target: HK$0.15 ▲(4.29% Upside)

The overall stock score is primarily influenced by significant financial challenges, including a steep revenue decline and ongoing profitability issues. Technical analysis provides some positive momentum, but poor valuation metrics further weigh down the score.

Positive Factors

Diversified Revenue Model

A diversified revenue model with long-term contracts ensures stable income streams and reduces dependency on single market segments.

R&D and Innovation

Investment in R&D fosters innovation, enabling Mexan to stay competitive by meeting evolving industry demands and expanding its market share.

Partnerships and Joint Ventures

Strategic partnerships enhance technological capabilities and open new revenue channels, strengthening Mexan's market position.

Negative Factors

Revenue Decline

A significant revenue decline indicates potential loss of market share and challenges in sustaining growth, impacting long-term viability.

Profitability Issues

Ongoing profitability issues suggest operational inefficiencies and may hinder the company's ability to reinvest for growth.

Negative Return on Equity

Negative ROE indicates poor financial health and inefficiency in using shareholder funds, potentially affecting investor confidence.

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

The company faces significant financial challenges, with a steep revenue decline and ongoing profitability issues. Despite a positive gross profit margin and manageable leverage, the negative return on equity and consistent losses are concerning. Cash flow improvements are a positive sign, but overall financial health remains weak.

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: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 35.61 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

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%
0201	52 Neutral	HK$635.24M	―	-0.66%	―	3.97%	41.51%
0022	51 Neutral	HK$285.13M	-13.56	―	―	―	―
0617	49 Neutral	HK$306.51M	-0.18	-19.01%	―	-2.75%	-17.31%
0253	49 Neutral	HK$130.55M	―	-4.69%	―	3.58%	-87.78%
0219	46 Neutral	HK$286.50M	-0.85	-4.72%	―	3.58%	-91.61%
0078	40 Neutral	€539.27M	-0.30	-29.62%	―	-0.60%	34.74%

Mexan Corporate Events

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.

Mexan Limited Appoints New Auditor Following Fee Dispute

Mexan Limited announced a change in its auditing firm due to a disagreement over audit fees with BDO Limited, which resigned as the company’s auditor. The company has appointed Forvis Mazars CPA Limited as the new auditor, citing their qualifications, industry experience, and cost-effectiveness as key factors in the decision. This change is expected to have no material impact on the company’s annual audit and aims to enhance cost control, benefiting the company and its stakeholders.

Mexan Limited AGM Resolutions Passed Unanimously

Mexan Limited announced the results of its Annual General Meeting held on September 19, 2025, where all proposed resolutions were passed with overwhelming support. These resolutions included the approval of financial statements, re-election of directors, authorization of directors’ remuneration, re-appointment of auditors, and granting of mandates to repurchase and issue shares, reflecting strong shareholder confidence in the company’s governance and strategic direction.