Chen Hsong Holdings (0057) AI Stock Analysis

• Market Cap: HK$1.02B
• Dividend Yield: 7.16%
• Average Volume (3M): 177.80K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.30
• Revenue Growth: 17.21%
• EPS Growth: 29.75%
• Country: HK
• Employees: 2,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.10
• Shares Outstanding: 630,531,560
• 10 Day Avg. Volume: 300,400
• 30 Day Avg. Volume: 177,800
• PEG Ratio: -0.35
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 3.16
• 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: 69 Neutral
• Price Target: HK$2.00 ▲(24.22% Upside)

Chen Hsong Holdings' overall score is driven by its strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest potential undervaluation and income opportunities. However, technical indicators show bearish trends, and cash flow management issues present risks that need addressing.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates a positive trajectory in sales, reflecting its ability to capture market demand and expand its customer base.

Financial Stability

A low debt-to-equity ratio suggests strong financial stability, reducing leverage risk and providing flexibility for future investments or downturns.

Product Innovation

Investments in R&D enhance competitive edge by developing advanced products, meeting evolving industry demands, and driving sales growth.

Negative Factors

Cash Flow Challenges

Negative cash flows can strain liquidity, impacting the company's ability to fund operations and growth initiatives, posing a risk to financial health.

Net Profit Margin

A modest net profit margin indicates potential inefficiencies in cost management or pricing strategies, affecting overall profitability and competitiveness.

Free Cash Flow Growth

Declining free cash flow growth suggests challenges in cash generation, which could hinder the company's ability to invest in future growth and operations.

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 multiple key revenue streams, including direct machine sales, aftermarket services, and maintenance contracts. Direct sales account for a significant portion of its earnings, with customers in diverse markets globally. Additionally, Chen Hsong benefits from strategic partnerships with suppliers and distributors, enabling it to expand its market reach. The company also invests in research and development to create advanced machinery that meets evolving industry demands, thereby enhancing its competitive edge and driving further sales growth.

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, such as negative operating and free cash flows, could impact its ability to fund operations and growth initiatives.

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 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.59B	2.59B	2.31B	2.01B	2.73B	2.36B
Gross Profit	609.75M	609.75M	548.05M	476.98M	647.27M	633.01M
EBITDA	207.17M	249.74M	221.43M	183.35M	296.00M	326.66M
Net Income	154.39M	154.39M	130.29M	100.85M	213.31M	203.02M
Balance Sheet
Total Assets	4.36B	4.36B	4.15B	4.14B	4.43B	4.38B
Cash, Cash Equivalents and Short-Term Investments	528.18M	528.18M	669.15M	825.78M	696.31M	1.20B
Total Debt	17.54M	17.54M	19.93M	17.34M	27.72M	70.73M
Total Liabilities	1.27B	1.27B	1.08B	1.07B	1.20B	1.37B
Stockholders Equity	3.08B	3.08B	3.05B	3.06B	3.21B	3.00B
Cash Flow
Free Cash Flow	-170.49M	-170.49M	85.94M	265.09M	-390.33M	200.74M
Operating Cash Flow	-98.87M	-98.87M	149.87M	323.04M	-259.76M	241.78M
Investing Cash Flow	-53.85M	-116.41M	-14.94M	-64.55M	-128.76M	-40.33M
Financing Cash Flow	-59.10M	-59.10M	-123.48M	-68.11M	-151.90M	-94.61M

Chen Hsong Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.61
• 50DMA: Negative
• 100DMA: Negative
• 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:0057, the sentiment is Negative. The current price of 1.61 is below the 20-day moving average (MA) of 1.61, below the 50-day MA of 1.68, and above the 200-day MA of 1.54, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 40.92 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	75 Outperform	HK$38.24B	10.83	15.98%	3.32%	16.15%	17.32%
1133	74 Outperform	HK$40.36B	16.89	15.06%	1.44%	34.78%	98.79%
0057	69 Neutral	HK$1.02B	6.77	4.79%	7.16%	17.21%	29.75%
2722	65 Neutral	HK$7.92B	12.74	7.29%	2.50%	11.18%	46.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0558	60 Neutral	HK$4.71B	13.72	17.97%	2.25%	14.32%	-19.44%
0187	42 Neutral	HK$6.84B	-542.50	-0.43%	―	7.11%	77.53%

Chen Hsong Holdings Corporate Events

Chen Hsong Holdings Announces 2025 Share Award Scheme to Retain Talent

Chen Hsong Holdings Limited announced the grant of 944,300 Share Awards to 23 grantees under its 2025 Share Award Scheme. The initiative aims to retain talent, reward contributions, and align the interests of employees with shareholders for the company’s long-term development. The awards, which do not have performance targets, are intended to incentivize and retain key personnel, with vesting spread over four years to ensure commitment to the company’s growth.

The most recent analyst rating on (HK:0057) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Chen Hsong Holdings stock, see the HK:0057 Stock Forecast page.

Chen Hsong Holdings Declares Interim Dividend for 2025

Chen Hsong Holdings Limited announced an interim cash dividend of HKD 0.036 per share for the six months ending September 30, 2025, with a payment date set for January 14, 2026. This announcement reflects the company’s ongoing financial health and commitment to providing shareholder returns, potentially bolstering investor confidence and reinforcing its market position.

The most recent analyst rating on (HK:0057) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Chen Hsong Holdings stock, see the HK:0057 Stock Forecast page.

Chen Hsong Holdings Reports Decline in Interim Profits

Chen Hsong Holdings Limited reported a slight decline in its interim financial results for the six months ended 30 September 2025, with a 7% decrease in profit attributable to equity holders compared to the previous year. Despite steady revenue, the company saw a reduction in profit before tax and basic earnings per share, reflecting challenges in maintaining profit margins amidst stable sales figures.

The most recent analyst rating on (HK:0057) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Chen Hsong Holdings stock, see the HK:0057 Stock Forecast page.

Chen Hsong Holdings to Announce Interim Results and Consider Dividend

Chen Hsong Holdings Limited has announced that its board of directors will meet on November 21, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the declaration and payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns to shareholders, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0057) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Chen Hsong Holdings stock, see the HK:0057 Stock Forecast page.