Chen Hsong Holdings (0057) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: 6.45%
• Average Volume (3M): 356.78K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.34
• Revenue Growth: 29.12%
• EPS Growth: 53.10%
• Country: HK
• Employees: 2,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.14
• Shares Outstanding: 630,531,560
• 10 Day Avg. Volume: 380,600
• 30 Day Avg. Volume: 356,784
• 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: 0.26
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 0.61
• Enterprise Value/Ebitda: 1.98
• 1Y Price Target: $2.02
• Price Target Upside: 10.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$2.00 ▲(9.29% Upside)

Chen Hsong Holdings' strong valuation metrics, including a low P/E ratio and high dividend yield, are the most significant factors driving the score. While financial performance is solid, cash flow challenges need addressing. Technical indicators suggest a stable outlook, supporting the overall positive assessment.

Chen Hsong Holdings Business Overview & Revenue Model

Company Description

Chen Hsong Holdings Limited, an investment holding company, manufactures and sells plastic injection molding machines and related products in Mainland China, Hong Kong, Taiwan, and internationally. The company also engages in the manufacture and sale of tie bars, hydraulic motors, and casting parts, as well as property holding activities. Its products are used in automotive, packaging, home appliances, electronics, mobile phones, and various other applications. The company was founded in 1958 and is headquartered in Tai Po, Hong Kong. Chen Hsong Holdings Limited is a subsidiary of Chen Hsong Investments Limited.

How the Company Makes Money

Chen Hsong Holdings generates revenue primarily through the sale of its injection molding machines and associated equipment. The company has a diversified revenue model that includes direct sales to manufacturers and distributors, along with after-sales services such as maintenance, spare parts, and technical support, which provide recurring income. Additionally, Chen Hsong engages in strategic partnerships with other firms in the manufacturing and technology sectors to enhance its product offerings and market reach. The demand for their machines is influenced by trends in plastic manufacturing, technological advancements, and the overall health of the global economy, which can affect their sales volumes and pricing strategies.

Chen Hsong Holdings Financial Statement Overview

Summary

Chen Hsong Holdings shows strong revenue growth and a stable financial structure with low leverage. However, challenges in cash flow management could impact its ability to fund operations and growth initiatives. Improving cash flow efficiency and maintaining profitability are crucial for sustaining long-term growth.

Income Statement

Chen Hsong Holdings has shown a strong revenue growth rate of 17.09% in the latest period, indicating a positive trajectory in sales. The gross profit margin is stable at around 23.5%, which is consistent with industry norms. However, the net profit margin of 5.95% suggests room for improvement in cost management or pricing strategies. The EBIT and EBITDA margins are healthy, reflecting efficient operational management.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.0057, indicating strong financial stability and low leverage risk. The return on equity (ROE) is modest at 5.01%, suggesting moderate profitability relative to shareholder equity. The equity ratio is robust, highlighting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement reveals challenges with negative operating and free cash flows, indicating potential liquidity issues. The free cash flow to net income ratio is high at 1.72, which could suggest that the company is investing heavily in growth or capital expenditures. However, the negative free cash flow growth rate of -210.51% is a concern and requires attention to improve cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.22B	2.59B	2.01B	2.31B	2.73B	2.36B
Gross Profit	507.46M	609.75M	476.98M	548.05M	647.27M	633.01M
EBITDA	156.34M	249.74M	183.35M	221.43M	296.00M	323.92M
Net Income	115.51M	154.39M	100.85M	130.29M	213.31M	203.02M
Balance Sheet
Total Assets	4.34B	4.36B	4.14B	4.15B	4.43B	4.38B
Cash, Cash Equivalents and Short-Term Investments	1.01B	528.18M	825.78M	669.15M	696.31M	1.20B
Total Debt	15.31M	17.54M	17.34M	19.93M	27.72M	70.73M
Total Liabilities	1.23B	1.27B	1.07B	1.08B	1.20B	1.37B
Stockholders Equity	3.09B	3.08B	3.06B	3.05B	3.21B	3.00B
Cash Flow
Free Cash Flow	154.28M	-170.49M	265.09M	85.94M	-390.33M	200.74M
Operating Cash Flow	217.07M	-98.87M	323.04M	149.87M	-259.76M	241.78M
Investing Cash Flow	-112.12M	-116.41M	-64.55M	-14.94M	-128.76M	-40.33M
Financing Cash Flow	-54.17M	-59.10M	-68.11M	-123.48M	-151.90M	-94.61M

Chen Hsong Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.83
• 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:0057, the sentiment is Positive. The current price of 1.83 is above the 20-day moving average (MA) of 1.74, above the 50-day MA of 1.64, and above the 200-day MA of 1.42, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 60.19 is Neutral, neither overbought nor oversold. The STOCH value of 65.66 is Neutral, 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
1882	80 Outperform	35.50B	10.05	14.78%	3.34%	16.15%	17.32%
1133	78 Outperform	24.82B	10.38	10.89%	2.12%	34.78%	98.79%
0057	74 Outperform	$1.19B	7.68	5.04%	6.45%	29.12%	53.10%
2722	68 Neutral	6.96B	11.20	0.00%	2.01%	11.18%	46.57%
0558	65 Neutral	6.44B	18.39	17.59%	1.58%	-0.21%	-27.21%
0187	56 Neutral	6.55B	-542.71	0.00%	―	3.13%	80.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Chen Hsong Holdings Corporate Events

Chen Hsong Holdings Announces 2025 Annual General Meeting and Strategic Resolutions

Chen Hsong Holdings Limited has announced its annual general meeting scheduled for August 28, 2025, where key agenda items include the approval of financial statements, the re-election of directors, and the reappointment of Ernst & Young as auditors. Additionally, the company seeks shareholder approval for the repurchase of shares and the issuance of additional shares, indicating a strategic focus on optimizing capital structure and enhancing shareholder value.

Chen Hsong Holdings Proposes New Share Incentive Schemes

Chen Hsong Holdings Limited has announced a Special General Meeting to discuss and potentially approve two new schemes: the 2025 Share Option Scheme and the 2025 Share Award Scheme. These schemes aim to incentivize and reward eligible participants by allowing them to acquire shares, with the total shares issued under these schemes not exceeding 10% of the company’s current shares. The approval and implementation of these schemes are subject to the necessary permissions from the Hong Kong Stock Exchange, and they signify a strategic move to enhance employee engagement and align their interests with the company’s growth objectives.

Chen Hsong Holdings Reports Strong Financial Growth in 2025

Chen Hsong Holdings Limited reported a significant financial performance for the year ended March 31, 2025, with a 29% increase in revenue and a 53% rise in profit attributable to equity holders compared to the previous year. This robust growth in financial metrics underscores the company’s strong operational capabilities and positions it favorably within the industry, potentially benefiting stakeholders through increased dividends and stable asset management.

Chen Hsong Holdings Declares Final Dividend for FY2025

Chen Hsong Holdings Limited has announced a final ordinary dividend of HKD 0.08 per share for the financial year ending 31 March 2025. This announcement reflects the company’s stable financial performance and commitment to returning value to its shareholders, with the payment date set for 22 September 2025.

Chen Hsong Holdings Announces Board Changes

Chen Hsong Holdings Limited, a company listed on the Hong Kong Stock Exchange, announced the retirement of Mr. Michael Tze Hau Lee as an Independent Non-executive Director, effective from the conclusion of the upcoming annual general meeting on August 28, 2025. Mr. Lee will also step down from his roles in various board committees, with Mr. Harry Chi Hui set to take over as Chairman of the Corporate Governance Committee. The company expressed gratitude for Mr. Lee’s contributions and welcomed Mr. Hui to his new role.

Chen Hsong Holdings Updates Nomination Committee Structure

Chen Hsong Holdings Limited has updated the terms of reference for its Nomination Committee, emphasizing the inclusion of diverse and independent perspectives. The committee, which plays a crucial role in board appointments, will now require a minimum of three members, with a majority being independent non-executive directors, and mandates gender diversity among its members.

Chen Hsong Holdings to Announce Annual Results and Dividend Consideration

Chen Hsong Holdings Limited has announced that its board of directors will meet on June 20, 2025, to approve the company’s annual results for the year ending March 31, 2025. The meeting will also consider the recommendation for a final dividend or other distribution, which could impact shareholder returns and reflect the company’s financial health.