Mexan (0022) AI Stock Analysis

• Market Cap: HK$202.54M
• Dividend Yield: N/A
• Average Volume (3M): 811.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 127
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Travel Lodging
• EPS (TTM): N/A
• Shares Outstanding: 1,966,387,800
• 10 Day Avg. Volume: 1,326,473
• 30 Day Avg. Volume: 811,445
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 43 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is significantly impacted by the company's poor financial performance and weak technical indicators. The steep revenue decline and ongoing profitability issues are major concerns. Additionally, the negative P/E ratio and lack of dividend yield contribute to a low valuation score. Technical analysis indicates bearish momentum, further weighing down the stock's attractiveness.

Mexan Business Overview & Revenue Model

Company Description

Mexan (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 Money

Mexan 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

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	-2.22M	-22.99M	-23.04M
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: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.12 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.67 is Neutral, neither overbought nor oversold. The STOCH value of 13.05 is Positive, 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%
0253	54 Neutral	HK$132.97M	―	-4.69%	―	3.58%	-87.78%
0201	52 Neutral	HK$626.29M	―	-0.66%	―	3.97%	41.51%
0617	49 Neutral	HK$339.95M	―	-19.01%	―	-2.75%	-17.31%
0219	46 Neutral	HK$281.39M	―	-4.72%	―	3.58%	-91.61%
0078	46 Neutral	€557.25M	―	-29.62%	―	-0.60%	34.74%
0022	43 Neutral	HK$202.54M	―	―	―	―	―

Mexan Corporate Events

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.

Mexan Limited Announces Annual General Meeting and Shareholder Resolutions

Mexan Limited has announced its upcoming annual general meeting scheduled for September 19, 2025, in Hong Kong. Key agenda items include reviewing financial statements, re-electing directors, and re-appointing auditors. The company also seeks shareholder approval for resolutions that would allow the directors to repurchase shares and issue additional shares, potentially impacting its market operations and shareholder value.

Mexan Limited Appoints New Executive Director and Restructures Board Committees

Mexan Limited has announced the appointment of Mr. Chan Tat Ming as an executive director and a member of the Executive Committee, effective July 30, 2025. Mr. Chan brings over 40 years of experience in business management and marketing development, with expertise in trading, manufacturing, and innovation. His appointment is expected to drive high-value business development projects and enhance revenue growth and shareholder value. Additionally, changes in the composition of board committees have been made, with Mr. Chan joining the Executive Committee and Mr. Chao Howard and Ms. Wong Yuen Fan being appointed to the Nomination Committee.

Mexan Limited Announces New Board and Committee Structure

Mexan Limited has announced the composition of its board of directors and the roles within its four committees, effective from July 30, 2025. The board comprises both executive and independent non-executive directors, with Lun Yiu Kay Edwin serving as the Chairman. The establishment of these committees, including Audit, Remuneration, Nomination, and Executive Committees, is expected to enhance the governance and operational oversight of the company, potentially impacting its strategic direction and stakeholder engagement.

Mexan Limited Announces Change of Business Address in Hong Kong

Mexan Limited, a company listed on the Hong Kong Stock Exchange, has announced a change in the address of its principal place of business in Hong Kong. The new address is Room 1303, 13/F, Bank of America Tower, No. 12 Harcourt Road, Central, Hong Kong. This change is part of the company’s ongoing operational updates and may have implications for its stakeholders in terms of communication and business operations.