Xingfa Aluminium Holdings Ltd. (0098) AI Stock Analysis

• Market Cap: HK$3.24B
• Dividend Yield: 8.25%
• Average Volume (3M): 64.13K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.02
• Revenue Growth: 10.71%
• EPS Growth: -22.12%
• Country: HK
• Employees: 10,035
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Aluminum
• EPS (TTM): 0.70
• Shares Outstanding: 420,649,140
• 10 Day Avg. Volume: 25,100
• 30 Day Avg. Volume: 64,127
• PEG Ratio: 1.28
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 6.02
• 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: HK$8.50
• Price Target Upside: 8.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: HK$8.50 ▲(8.97% Upside)

Xingfa Aluminium Holdings Ltd. has a strong financial foundation and attractive valuation, with a low P/E ratio and high dividend yield. However, technical indicators suggest bearish momentum, which could pose short-term risks. The company should focus on improving operational efficiencies to enhance profitability and address the declining EBIT margin.

Xingfa Aluminium Holdings Ltd. Business Overview & Revenue Model

Company Description

Xingfa Aluminium Holdings Limited, an investment holding company, manufactures, sells, and trades in aluminium profiles used as construction and industrial materials in the People's Republic of China. It operates through Industrial Aluminium Profiles, Construction Aluminium Profiles, and All Other segments. The Industrial Aluminium Profiles segment manufactures and sells plain aluminium profiles for industrial usage. The Construction Aluminium Profiles segment manufactures and sells aluminium profiles with surface finishing, including anodic oxidation, electrophoresis coating, powder coating, and PVDF coating aluminium profiles used in architecture decoration. The All Other segment offers service contracts related to aluminium products; sells office premises and residential properties; and sells aluminium panels, aluminium alloys, moulds, and spare parts. The company also engages in the property development business. The company was founded in 1984 and is headquartered in Foshan, the People's Republic of China.

How the Company Makes Money

Xingfa Aluminium Holdings Ltd. generates revenue primarily through the sale of aluminum profiles and related products. The company's key revenue streams include the domestic and international distribution of its aluminum goods to various industries such as construction, automotive, and electronics. Xingfa's significant earnings are bolstered by its extensive distribution network and strong partnerships with industry leaders, enabling the company to maintain a steady demand for its products. Additionally, Xingfa invests in research and development to enhance product quality and innovation, further supporting its revenue growth and market competitiveness.

Xingfa Aluminium Holdings Ltd. Financial Statement Overview

Summary

Xingfa Aluminium Holdings Ltd. demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet reflects a solid equity position and manageable debt levels, supporting financial stability. Cash flows are generally positive, although there are fluctuations that need careful management. The company should focus on improving operational efficiencies to boost EBIT margins and ensure sustainable growth.

Income Statement

Xingfa Aluminium Holdings Ltd. has shown consistent revenue growth over the years, with a notable increase from 2019 to 2024. The gross profit margin has remained strong, indicating good control over production costs. However, there was a significant decline in EBIT margin in 2024, which could suggest operational inefficiencies or increased expenses. The net profit margin has remained relatively stable, reflecting consistent profitability.

Balance Sheet

The company's balance sheet displays a healthy equity ratio, signifying a solid capital structure with a good proportion of equity financing. The debt-to-equity ratio is manageable, showing a conservative leverage approach. Return on equity has been strong, although it experienced a dip in 2024, potentially due to lower EBIT. The increase in total assets indicates growth potential, but the rising debt levels warrant careful monitoring.

Cash Flow

Xingfa Aluminium maintains a positive free cash flow, although it has seen fluctuations over the years. The operating cash flow to net income ratio is healthy, indicating efficient conversion of profits into cash. However, the free cash flow to net income ratio shows some volatility, possibly due to varying capital expenditures. The cash flow from financing activities has been negative in recent years, indicating debt repayments and dividend payouts.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.85B	17.35B	16.93B	15.43B	11.89B
Gross Profit	1.76B	1.99B	1.77B	1.81B	1.63B
EBITDA	1.56B	1.53B	1.16B	1.54B	1.38B
Net Income	826.03M	804.17M	457.77M	887.80M	765.38M
Balance Sheet
Total Assets	14.54B	12.87B	12.10B	11.34B	8.44B
Cash, Cash Equivalents and Short-Term Investments	2.73B	2.84B	1.85B	1.64B	509.64M
Total Debt	2.88B	3.15B	2.51B	1.76B	1.14B
Total Liabilities	8.63B	7.54B	7.44B	6.86B	4.74B
Stockholders Equity	5.90B	5.32B	4.65B	4.48B	3.70B
Cash Flow
Free Cash Flow	459.66M	485.69M	-184.33M	646.46M	534.48M
Operating Cash Flow	1.42B	1.47B	790.77M	1.33B	973.40M
Investing Cash Flow	-884.65M	-836.70M	-890.39M	-604.82M	-209.97M
Financing Cash Flow	-647.88M	358.69M	326.51M	408.78M	-781.45M

Xingfa Aluminium Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.80
• 50DMA: Negative
• 100DMA: Negative
• 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:0098, the sentiment is Neutral. The current price of 7.8 is below the 20-day moving average (MA) of 8.01, below the 50-day MA of 8.29, and above the 200-day MA of 7.31, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 41.97 is Neutral, neither overbought nor oversold. The STOCH value of 57.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0098.

Xingfa Aluminium Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1378	81 Outperform	251.67B	8.64	20.75%	6.08%	15.38%	41.07%
2600	74 Outperform	141.36B	11.22	17.92%	4.95%	0.00%	0.00%
0098	69 Neutral	HK$3.24B	4.17	12.58%	8.25%	10.71%	-22.12%
2078	61 Neutral	166.72M	-39.71	0.00%	―	-26.79%	-112.82%
0609	54 Neutral	1.25B	19.35	0.00%	3.52%	-5.29%	-32.47%
0581	50 Neutral	4.73B	17.80	0.67%	0.75%	-14.11%	0.00%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Xingfa Aluminium Holdings Ltd. Corporate Events

Xingfa Aluminium Secures Shareholder Approval for AGM Resolutions

Xingfa Aluminium Holdings Ltd. announced that all resolutions proposed at their Annual General Meeting on May 29, 2025, were approved by shareholders. Key resolutions included the approval of financial statements, re-election of directors, and the granting of mandates for share dealings, reflecting strong shareholder support and continuity in company governance.