Chen Hsong Holdings (0057) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: 9.5%
• Average Volume (3M): 187.15K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.35
• Revenue Growth: 11.17%
• EPS Growth: 9.31%
• Country: HK
• Employees: 2,500
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 0.14
• Shares Outstanding: 630,531,560
• 10 Day Avg. Volume: 318,600
• 30 Day Avg. Volume: 187,153
• PEG Ratio: -0.24
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.65
• 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: 60 Neutral
• Price Target: ―

Chen Hsong Holdings receives a balanced score, driven by its strong valuation and financial stability due to robust cash flow and a high equity ratio. However, the declining revenue and profitability margins, along with bearish technical indicators, present challenges. The stock's low P/E ratio and high dividend yield offer potential value, but caution is advised due to negative market momentum.

Chen Hsong Holdings Business Overview & Revenue Model

Company Description

Chen Hsong Holdings Limited (0057) is a leading manufacturer of injection molding machines, catering to various industries worldwide. Established in Hong Kong, the company specializes in producing high-performance, durable equipment used in the production of plastic products. Chen Hsong's product range includes small to large tonnage machines, serving sectors such as automotive, consumer electronics, and packaging.

How the Company Makes Money

Chen Hsong Holdings generates revenue primarily through the sale of its injection molding machines. The company designs and manufactures a wide array of machines that cater to different industrial needs, from compact models used in small-scale operations to larger, high-capacity units for extensive production lines. Revenue streams include direct sales to manufacturers, after-sales services, spare parts supply, and technical support. The company also benefits from strategic partnerships and collaborations with distributors and industry partners, which help in expanding its market reach and boosting sales. Chen Hsong's earnings are influenced by its ability to innovate and meet the evolving demands of industries reliant on plastic manufacturing.

Chen Hsong Holdings Financial Statement Overview

Summary

Chen Hsong Holdings demonstrates financial stability with a strong equity base and positive cash flow generation. However, declining revenue and profitability margins highlight challenges in maintaining growth and operational efficiency. The low leverage suggests conservative financial management, potentially limiting agility in market expansion.

Income Statement

Chen Hsong Holdings has faced declining revenue, with a notable decrease in 2024 compared to previous years. The gross profit margin stands at 23.74%, and the net profit margin is 5.02% for 2024, indicating some profitability but also a reduction from prior years. The EBIT and EBITDA margins have decreased, reflecting pressure on operational performance.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of 73.78% in 2024, suggesting financial stability. However, the debt-to-equity ratio is low at 0.006, indicating minimal leverage, which could limit growth opportunities. Return on Equity is moderate at 3.30% for 2024, reflecting limited profitability.

Cash Flow

Chen Hsong Holdings shows a positive free cash flow in 2024, with substantial growth from the previous year. The operating cash flow to net income ratio is robust at 3.20, indicating efficient cash generation relative to income. Free cash flow growth rate is strong, suggesting improving liquidity.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	2.22B	2.01B	2.31B	2.73B	2.36B	1.51B
Gross Profit	507.46M	476.98M	548.05M	647.27M	633.01M	338.88M
EBITDA	156.34M	183.35M	221.43M	296.00M	323.92M	206.41M
Net Income	115.51M	100.85M	130.29M	213.31M	203.02M	93.65M
Balance Sheet
Total Assets	4.34B	4.14B	4.15B	4.43B	4.38B	3.44B
Cash, Cash Equivalents and Short-Term Investments	1.01B	825.78M	669.15M	696.31M	1.20B	1.02B
Total Debt	15.31M	17.34M	19.93M	27.72M	70.73M	102.01M
Total Liabilities	1.23B	1.07B	1.08B	1.20B	1.37B	764.26M
Stockholders Equity	3.09B	3.06B	3.05B	3.21B	3.00B	2.66B
Cash Flow
Free Cash Flow	154.28M	265.09M	85.94M	-390.33M	200.74M	167.24M
Operating Cash Flow	217.07M	323.04M	149.87M	-259.76M	241.78M	185.54M
Investing Cash Flow	-97.36M	-64.55M	-14.94M	-128.76M	-40.33M	204.18M
Financing Cash Flow	-54.17M	-68.11M	-123.48M	-151.90M	-94.61M	-23.92M

Chen Hsong Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0057, the sentiment is Positive. The current price of 1.6 is above the 20-day moving average (MA) of 1.49, above the 50-day MA of 1.43, and above the 200-day MA of 1.40, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 79.27 is Negative, neither overbought nor oversold. The STOCH value of 96.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0057.

Chen Hsong Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0331	78 Outperform	HK$2.56B	5.36	49.10%	3.70%	3.11%	-2.34%
0819	65 Neutral	HK$7.13B	5.76	7.12%	2.69%	-10.37%	-38.54%
0057	60 Neutral	$1.01B	6.54	5.04%	9.50%	11.17%	9.31%
Sector *	58 Neutral	HK$10.50B	4.22	-2.96%	7.40%	3.76%	-51.26%
0039	41 Neutral	HK$787.68M	―	-27.77%	―	―	―

Chen Hsong Holdings Corporate Events

Chen Hsong Holdings Announces Change in Share Registrar Office

Chen Hsong Holdings Limited has announced a change in its branch share registrar and transfer office in Hong Kong, effective from April 30, 2025. The new registrar will be Tricor Investor Services Limited, and this change is expected to streamline the process of share transfer and collection for stakeholders, potentially enhancing operational efficiency.