China Asia Valley Group Limited (0063) AI Stock Analysis

• Market Cap: HK$393.87M
• Dividend Yield: N/A
• Average Volume (3M): 82.17K
• Price to Earnings (P/E): 315.0
• Beta (1Y): 0.17
• Revenue Growth: 144.07%
• EPS Growth: -92.86%
• Country: HK
• Employees: 141
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.00
• Shares Outstanding: 6,352,702,000
• 10 Day Avg. Volume: 207,200
• 30 Day Avg. Volume: 82,171
• PEG Ratio: -3.36
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 2.84
• P/FCF Ratio: 13.54
• 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: 57 Neutral
• Price Target: HK$0.07 ▲(10.00% Upside)

The overall stock score reflects strong financial performance in terms of revenue growth and profitability, but is significantly impacted by high leverage and poor cash flow generation. Technical analysis suggests a stable trend, while the high P/E ratio indicates potential overvaluation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion.

High Gross Margin

A high gross margin suggests efficient cost management and pricing power, contributing to sustainable profitability and competitive advantage.

Equity Ratio

A strong equity ratio indicates financial stability and a solid foundation for future investments and growth opportunities.

Negative Factors

High Leverage

Significant leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth.

Limited Cash Flow

Insufficient cash flow generation can constrain operations and hinder the company's ability to meet debt obligations and fund growth.

Low Return on Equity

Low ROE indicates inefficient use of equity capital, which may limit shareholder value creation and affect long-term investor confidence.

China Asia Valley Group Limited Business Overview & Revenue Model

Company Description

China Asia Valley Group Limited, an investment holding company, engages in property management business in Japan and the People's Republic of China. It operates through three segments: Property Investment, Horticultural Services, and Property Management and Other Related Services. The company is involved in the leasing of residential properties; and provision of property management and other related services. It also provides horticultural services and sells plants under Cheung Kee Garden brand name. The company was formerly known as China Graphene Group Limited and changed its name to China Asia Valley Group Limited in September 2020. China Asia Valley Group Limited was incorporated in 1996 and is headquartered in Shenzhen, the People's Republic of China. China Asia Valley Group Limited is a subsidiary of China Asia Graphene Holding Group Co. Limited.

How the Company Makes Money

The company generates revenue through multiple streams, primarily from its agricultural operations, where it cultivates and sells a range of agricultural products. Additionally, it earns income from technology services related to agricultural efficiency, including consulting and software solutions. Real estate investments also contribute to the company's earnings, through rental income and property sales. Strategic partnerships with local farmers and technology providers enhance its market reach and operational efficiency, further bolstering its revenue generation capabilities.

China Asia Valley Group Limited Financial Statement Overview

Summary

The company exhibits strong revenue growth and profitability with high gross and EBIT margins. However, significant leverage and limited cash flow generation pose risks to financial flexibility. The balance sheet shows high debt levels, and cash flow issues highlight potential liquidity constraints.

Income Statement

The company has shown substantial revenue growth from 2023 to 2024, with a Gross Profit Margin of 72.32% and a positive Net Profit Margin of 1.90%. Despite the strong EBIT Margin of 19.67%, the EBITDA Margin is notably lower at 10.40%, suggesting higher non-operational expenses or depreciation costs. Overall, the income statement reflects robust growth and profitability, albeit with potential concerns regarding cost management.

Balance Sheet

The balance sheet presents a high Debt-to-Equity Ratio of 1.10, indicating significant leverage. The Return on Equity stands at a modest 0.52%, showing limited returns on shareholder investments. However, the Equity Ratio is a healthy 45.63%, implying financial stability with substantial equity backing. The balance sheet suggests high leverage but is offset by solid equity support.

Cash Flow

The cash flow statement shows a concerning lack of operating cash flow and free cash flow in 2024, impacting liquidity and operational flexibility. The absence of clear free cash flow growth indicates potential cash management issues. This highlights a need for improved cash generation from operations to support future growth and debt obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	164.72M	134.68M	38.27M	39.88M	37.81M	17.22M
Gross Profit	126.57M	97.39M	31.17M	29.53M	31.94M	16.97M
EBITDA	26.39M	14.01M	12.19M	5.40M	4.90M	-5.77M
Net Income	1.11M	2.56M	2.51M	-47.01M	-330.00K	-22.96M
Balance Sheet
Total Assets	1.08B	1.08B	598.62M	372.08M	423.63M	417.58M
Cash, Cash Equivalents and Short-Term Investments	26.58M	20.46M	51.13M	3.03M	5.99M	2.73M
Total Debt	530.83M	541.28M	160.87M	160.32M	161.27M	162.33M
Total Liabilities	586.77M	584.50M	465.57M	240.89M	244.41M	243.68M
Stockholders Equity	492.00M	490.76M	133.15M	131.19M	179.23M	173.88M
Cash Flow
Free Cash Flow	-266.76M	28.28M	48.83M	3.58M	-3.60M	-2.77M
Operating Cash Flow	38.58M	28.62M	49.20M	3.70M	-2.96M	-2.37M
Investing Cash Flow	-3.47M	-301.32M	-396.00K	-1.64M	-2.79M	-1.14M
Financing Cash Flow	-47.55M	243.75M	-160.00K	-8.72M	5.52M	-134.00K

China Asia Valley Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0063, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.24 is Neutral, neither overbought nor oversold. The STOCH value of 60.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0063.

China Asia Valley Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2165	74 Outperform	HK$522.80M	6.90	11.46%	―	5.01%	-31.83%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3662	63 Neutral	HK$305.02M	7.16	3.28%	6.60%	-14.43%	-77.55%
0063	57 Neutral	HK$393.87M	315.00	0.23%	―	144.07%	-92.86%
2107	51 Neutral	HK$250.89M	-11.78	-4.06%	15.45%	6.30%	-128.34%
9608	45 Neutral	HK$230.40M	27.39	2.06%	―	0.88%	-25.81%