Greenheart Group (0094) AI Stock Analysis

• Market Cap: HK$133.56M
• Dividend Yield: N/A
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -33.99%
• EPS Growth: -13.80%
• Country: HK
• Employees: 125
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.06
• Shares Outstanding: 2,782,486,600
• 10 Day Avg. Volume: 822,820
• 30 Day Avg. Volume: 1,075,213
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Greenheart Group's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and negative profitability margins. Technical analysis provides a slightly positive outlook with mixed trends, but the valuation remains unattractive due to the negative P/E ratio and lack of dividend yield.

Greenheart Group Business Overview & Revenue Model

Company Description

Greenheart Group Limited, an investment holding company, engages in forestry business worldwide. It operates in two segments, Suriname and New Zealand. The company is involved in hardwood log harvesting and timber processing, as well as the marketing, sale, and trading of logs and timber products. It offers softwood products, such as radiata pine logs for sawn timber and plywood and veneer; and hardwood products used for furniture, flooring, decking, windows/doors, outdoor timber/heavy construction, interior decoration, and marine applications. As of December 31, 2021, the company managed radiata pine plantation forest assets with a total freehold title land base of approximately 12,700 hectares located in Northland region of New Zealand, as well as approximately 298,000 hectares of concessions and cutting rights in Suriname, South America. It also provides corporate, administrative and management, and forest management services; holds timber concessions, and harvests and sells logs and timber products; manufactures and sells pallets; and administers forestry operations. The company was formerly known as Omnicorp Limited and changed its name to Greenheart Group Limited in December 2010. The company was incorporated in 1991 and is based in Wanchai, Hong Kong. Greenheart Group Limited is a subsidiary of Newforest Limited.

How the Company Makes Money

Greenheart Group makes money primarily through the sale of logs and timber products harvested from its managed forests in Suriname and New Zealand. In Suriname, the company focuses on the extraction and sale of tropical hardwoods, which are highly valued in global markets for their durability and aesthetic qualities. In New Zealand, Greenheart Group manages softwood plantations, producing logs that are sold domestically and internationally, mainly for use in construction and industrial applications. Revenue is generated through direct sales contracts with construction companies, wood processors, and other industrial clients. The company also engages in partnerships and collaborations that focus on sustainable forestry practices, which can enhance its market reputation and demand for its products. Additionally, Greenheart Group might benefit from government incentives or grants related to sustainable and environmentally friendly forestry operations.

Greenheart Group Financial Statement Overview

Summary

Greenheart Group is experiencing financial distress with continuous revenue declines, negative profitability margins, and cash flow challenges. The balance sheet shows some stability in equity, but high leverage and persistent losses present substantial financial risks.

Income Statement

Greenheart Group has faced significant challenges in its income statement with a consistent decline in total revenue from 2019 to 2024. The gross profit margin and net profit margin are negative, indicating inefficiencies and losses in operations. Revenue has decreased significantly over the years, with a steep decline in 2024. The company also has been experiencing negative EBIT and EBITDA margins, illustrating a struggle to cover operating expenses.

Balance Sheet

The balance sheet reveals a moderately high debt-to-equity ratio, suggesting reliance on debt financing. However, the equity ratio remains reasonable, indicating fair asset management. Return on equity is negative, reflecting the losses incurred over the periods. Despite the rising total liabilities, the company maintains a relatively stable stockholders' equity, though it has been declining due to consistent losses.

Cash Flow

Greenheart Group's cash flow statement shows fluctuating free cash flows, with recent periods showing negative free cash flow, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is below optimal levels, impacted by negative operating cash flows in multiple years. The cash flow from operations is not sufficient to cover capital expenditures or debt obligations, posing liquidity risks.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.87M	90.98M	164.31M	320.52M	326.25M
Gross Profit	-58.61M	-90.44M	-48.91M	32.33M	9.02M
EBITDA	-147.20M	-110.08M	7.21M	77.60M	87.68M
Net Income	-139.24M	-93.08M	-97.75M	-59.23M	-36.13M
Balance Sheet
Total Assets	609.51M	799.30M	968.02M	1.11B	1.21B
Cash, Cash Equivalents and Short-Term Investments	19.51M	47.71M	71.68M	92.92M	167.68M
Total Debt	438.22M	408.17M	400.51M	390.77M	426.25M
Total Liabilities	519.30M	512.25M	547.21M	593.43M	633.58M
Stockholders Equity	601.22M	764.05M	851.21M	917.48M	954.27M
Cash Flow
Free Cash Flow	-23.31M	-16.22M	-30.52M	-11.87M	29.89M
Operating Cash Flow	-22.13M	2.48M	-21.22M	3.04M	38.44M
Investing Cash Flow	-9.31M	-11.53M	9.70M	-20.82M	-22.41M
Financing Cash Flow	7.26M	-14.69M	-6.16M	-53.95M	-19.61M

Greenheart Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0094, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.87 is Neutral, neither overbought nor oversold. The STOCH value of 122.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0094.

Greenheart Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.41B	7.18	-0.06%	2.87%	2.87%	-36.73%
8277	51 Neutral	HK$34.65M	0.96		―	-66.35%	―
1822	48 Neutral	HK$155.44M	1.42	-17.27%	―	-17.96%	-95.06%
0094	46 Neutral	HK$133.56M	―	-9.04%	―	-33.99%	-13.80%
0794	46 Neutral	HK$60.92M	27.06	0.44%	―	-0.53%	―
1580	23 Underperform	HK$159.97M	―	-2832.88%	―	84.56%	88.07%
8191	―	HK$11.50M	12.97	-49.13%	―	―	―

Greenheart Group Corporate Events

Greenheart Group Schedules Board Meeting for Interim Results

Greenheart Group Limited has announced that its board of directors will hold a meeting on August 26, 2025, to consider and approve the company’s interim results for the first half of the year ending June 30, 2025. The meeting will also discuss the recommendation of an interim dividend and other business matters. This announcement indicates the company’s ongoing commitment to transparency and shareholder communication, potentially impacting investor confidence and market perception.

Greenheart Group Completes Rights Issue with Successful Placement

Greenheart Group Limited announced the results of its rights issue, which was conducted on a non-underwritten basis. The rights issue was undersubscribed by approximately 22.1%, but the unsubscribed shares were successfully placed with third-party investors. The gross proceeds from the rights issue amounted to approximately HK$33.7 million, with net proceeds of HK$31.8 million. The company plans to allocate approximately HK$23.5 million to support its New Zealand operations, particularly in relation to the realization of existing cutting rights, and HK$8.3 million for corporate-level overhead expenses. The rights issue did not alter the controlling shareholder’s percentage, but it did introduce new placees into the shareholding structure.

Greenheart Group Announces Rights Issue Results and Compensatory Arrangements

Greenheart Group Limited announced the results of its Rights Issue, revealing that approximately 77.9% of the offered Rights Shares were subscribed, leaving 22.1% unsubscribed. To address the shortfall, the company has arranged for the placement of the unsubscribed shares to independent placees, with any net gain from this placement to be distributed to certain shareholders on a pro-rata basis.

Greenheart Group Revises Rights Issue Structure and Sets Timetable

Greenheart Group Limited has announced amendments to its proposed rights issue, which will now proceed without an excess application arrangement. This change impacts the structure of the rights issue, affecting shareholders’ ability to apply for excess shares. The company has also set a detailed timetable for the rights issue process, with key dates including the last day of dealings in shares on a cum-rights basis on June 17, 2025, and the record date for determining entitlements on June 26, 2025.

Greenheart Group Announces Rights Issue and Board Lot Size Change

Greenheart Group Limited has announced a proposed rights issue to raise up to HK$33,668,088 by offering one rights share for every two existing shares at a price of HK$0.0363 per share. The rights issue is not underwritten and will proceed irrespective of the level of acceptance, with any unsubscribed shares to be placed to independent placees on a best effort basis. Additionally, the company plans to change its board lot size for trading from 2,000 shares to 80,000 shares, effective July 9, 2025. This move is expected to impact trading liquidity and shareholder engagement.

Greenheart Group Establishes Nomination Committee to Strengthen Governance

Greenheart Group Limited has announced the establishment of a Nomination Committee, as resolved by its Board of Directors. The committee will consist of at least three members, with a majority being independent non-executive directors, and will include at least one member of a different gender. The creation of this committee is aimed at enhancing the governance structure of the company, potentially impacting its operational efficiency and stakeholder confidence.

Greenheart Group’s AGM Resolutions Passed Unanimously

Greenheart Group Limited held its Annual General Meeting on June 10, 2025, where all proposed resolutions were passed unanimously. Key resolutions included the approval of financial statements, re-election of directors, and granting mandates for share issuance and repurchase, indicating strong shareholder support and stable governance.

Greenheart Group Announces Changes in Nomination Committee

Greenheart Group Limited, a company listed on the Hong Kong Stock Exchange, has announced changes in its Nomination Committee effective June 10, 2025. The changes include the appointment of Ms. Suen Chung Yan, Julia as a member, the cessation of Mr. Cheng Chi-Him, Conrad as chairman and member, and the re-designation of Mr. To Chun Wai as the new chairman. These adjustments are part of the company’s ongoing efforts to strengthen its governance structure.

Greenheart Group Announces Board Composition and Roles

Greenheart Group Limited has announced the composition of its board of directors and their respective roles and functions. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to the Audit, Remuneration, and Nomination Committees, indicating a structured governance framework.