Greenheart Group (0094) AI Stock Analysis

• Market Cap: HK$150.25M
• Dividend Yield: N/A
• Average Volume (3M): 3.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -33.99%
• EPS Growth: 42.25%
• Country: HK
• Employees: 125
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.02
• Shares Outstanding: 2,782,486,600
• 10 Day Avg. Volume: 1,613,284
• 30 Day Avg. Volume: 3,859,071
• PEG Ratio: -0.01
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 1.72
• P/FCF Ratio: -3.82
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.05 ▼(-11.67% Downside)

Greenheart Group's financial distress, characterized by declining revenues and negative profitability, is the most significant factor impacting its stock score. Technical indicators suggest a bearish trend, and the negative P/E ratio highlights valuation concerns. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Sustainable Practices

Greenheart Group's commitment to sustainability aligns with global trends towards eco-friendly practices, potentially enhancing its market appeal and supporting long-term growth in renewable energy and sustainable forestry.

Diverse Revenue Streams

Diversified revenue streams from timber and renewable energy projects provide resilience against market fluctuations and support long-term financial stability.

Strategic Partnerships

Partnerships and strategic investments can drive innovation and market expansion, strengthening Greenheart Group's competitive position in the sustainable forestry and renewable energy sectors.

Negative Factors

Revenue Decline

Ongoing revenue declines indicate challenges in maintaining market share and competitiveness, potentially impacting long-term financial health and growth prospects.

Negative Profitability Margins

Negative profitability margins reflect operational inefficiencies and could hinder the company's ability to reinvest in growth opportunities, affecting long-term viability.

High Leverage

High leverage increases financial risk, limiting flexibility and potentially leading to higher interest expenses, which could strain cash flows and impact future growth.

Greenheart Group Business Overview & Revenue Model

Company Description

Greenheart Group (0094) is a diversified investment and development company primarily engaged in the forestry and timber industry, as well as renewable energy and eco-friendly products. The company focuses on sustainable practices, including the cultivation and processing of timber resources, and the development of renewable energy projects. With a commitment to environmental sustainability, Greenheart Group's core products and services include timber sales, wood-based products, and investment in renewable energy initiatives.

How the Company Makes Money

Greenheart Group generates revenue through multiple streams, primarily from the sale of timber and wood products, which include logs, sawn timber, and other processed wood materials. The company also earns income from renewable energy projects, such as biomass energy generation, which leverages its forestry resources for energy production. Significant partnerships with industry stakeholders, along with strategic investments in sustainable forestry practices, enhance its revenue potential. Additionally, Greenheart Group may also benefit from government incentives for renewable energy and sustainability initiatives, contributing further to its earnings.

Greenheart Group Financial Statement Overview

Summary

Greenheart Group is experiencing financial distress with declining revenues, 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.83M	51.87M	90.98M	164.31M	320.52M	326.25M
Gross Profit	-33.03M	-58.61M	-90.44M	-48.91M	32.33M	9.02M
EBITDA	-52.91M	-148.07M	-110.08M	1.22M	77.60M	23.30M
Net Income	-167.12M	-139.24M	-93.08M	-68.15M	-36.94M	-17.24M
Balance Sheet
Total Assets	630.95M	609.51M	799.30M	968.02M	1.11B	1.21B
Cash, Cash Equivalents and Short-Term Investments	22.16M	19.51M	47.71M	71.68M	92.92M	167.68M
Total Debt	463.61M	438.22M	408.17M	400.51M	390.77M	426.25M
Total Liabilities	531.43M	519.30M	512.25M	547.21M	593.43M	633.58M
Stockholders Equity	502.37M	601.22M	764.05M	851.21M	917.48M	954.27M
Cash Flow
Free Cash Flow	-20.76M	-23.31M	-6.66M	-30.52M	-11.87M	29.89M
Operating Cash Flow	-19.57M	-22.13M	2.48M	-21.22M	3.04M	38.44M
Investing Cash Flow	-5.83M	-9.31M	-11.53M	9.70M	-20.82M	-22.41M
Financing Cash Flow	21.51M	7.26M	-14.69M	-6.16M	-53.95M	-19.61M

Greenheart Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.44 is Neutral, neither overbought nor oversold. The STOCH value of 84.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1822	56 Neutral	HK$116.79M	1.08	-17.27%	―	-17.96%	-95.06%
8277	52 Neutral	HK$35.70M	0.78	―	―	-56.67%	―
0794	49 Neutral	HK$65.55M	15.23	0.85%	―	-5.06%	―
0094	41 Neutral	HK$150.25M	-1.32	-9.04%	―	-33.99%	42.25%
8191	41 Neutral	HK$8.47M	―	-49.13%	―	-55.81%	-15292.41%
1580	23 Underperform	HK$164.35M	-23.81	-395.28%	―	-35.61%	89.32%

Greenheart Group Corporate Events

Greenheart Group Announces Further Delay in Circular Dispatch

Greenheart Group Limited has announced a further delay in the dispatch of a Circular related to its Disposal transaction, now expected by 7 November 2025. The completion of the transaction is contingent on certain conditions, and there is uncertainty regarding the declaration of a Special Dividend, urging shareholders to exercise caution.

Greenheart Group Announces Delay in Circular Dispatch for Disposal Transaction

Greenheart Group Limited has announced a delay in the dispatch of a circular related to a significant disposal transaction. Initially scheduled for release by October 2, 2025, the circular will now be dispatched by October 24, 2025, due to the need for additional time to finalize certain information. The completion of the transaction and the declaration of a special dividend are contingent upon the fulfillment of specific conditions, and there is a possibility that the transaction may not proceed. Shareholders and potential investors are advised to exercise caution.

Greenheart Group Announces Major Asset Disposal Valued at NZ$91.76 Million

Greenheart Group Limited has announced a very substantial disposal involving the sale of its tree crops and forest land, valued at approximately NZ$91.76 million. The valuation, confirmed by Indufor Asia Pacific Limited, was based on income and market comparison approaches. Deloitte Touche Tohmatsu reviewed the calculations, ensuring compliance with the Listing Rules, while the company’s Financial Adviser confirmed the profit forecast was made with due diligence.

Greenheart Group Announces Asset Disposal and Special Dividend

Greenheart Group Limited has announced a very substantial disposal of sale assets and proposed a special dividend of HKD 0.01 per share. This announcement also includes the resumption of trading for the company. The details regarding shareholder approval, ex-dividend date, and payment date are yet to be announced. This move could potentially impact the company’s financial standing and market positioning, offering a return to shareholders while possibly signaling strategic shifts in its operations.

Greenheart Group Announces Major Asset Disposal and Special Dividend

Greenheart Group Limited has announced a very substantial disposal involving the sale of assets valued at approximately HK$615.52 million. This transaction, subject to shareholder approval, is part of a strategic move that includes a proposed special dividend of HK$0.01 per share. The disposal is significant enough to require compliance with Hong Kong’s Listing Rules, necessitating shareholder notification and approval. This move is poised to impact the company’s financial structure and market positioning, with implications for stakeholders as the company navigates this substantial transaction.

Greenheart Group Announces Trading Halt Amid Major Asset Disposal

Greenheart Group Limited has announced a trading halt on the Hong Kong Stock Exchange as of September 1, 2025, due to a pending announcement regarding a significant asset disposal transaction involving its subsidiaries. This move indicates a strategic shift in the company’s operations, potentially impacting its market positioning and stakeholder interests.

Greenheart Group Reports Interim Loss Amidst Fair Value Gains

Greenheart Group Limited announced its unaudited interim results for the six months ending June 30, 2025, reporting a total comprehensive expense of HK$74.66 million. Despite a fair value gain on plantation forest assets, the company experienced a significant loss from both continuing and discontinued operations, impacting its financial performance and stakeholder interests.

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.