Xingfa Aluminium Holdings Ltd. (0098) AI Stock Analysis

• Market Cap: HK$3.03B
• Dividend Yield: 8.68%
• Average Volume (3M): 20.73K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.06
• 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: 25,195
• 30 Day Avg. Volume: 20,731
• 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: 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: 75 Outperform
• Price Target: HK$8.50 ▲(17.40% Upside)

Xingfa Aluminium Holdings Ltd. scores well due to its strong financial performance and attractive valuation. The company's consistent revenue growth and solid balance sheet are significant strengths. However, technical analysis indicates mixed signals, with some bearish momentum. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and strong demand for products, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with a good equity ratio enhances financial stability and provides flexibility for future investments.

Cash Generation Ability

Positive free cash flow indicates efficient operations and the ability to fund growth initiatives or return capital to shareholders.

Negative Factors

EBIT Margin Decline

A decline in EBIT margin may indicate rising costs or inefficiencies, potentially impacting profitability if not addressed.

Rising Debt Levels

Increasing debt levels can strain financial resources, limiting flexibility and increasing risk if not managed properly.

Volatile Free Cash Flow

Volatile free cash flow can complicate financial planning and may affect the company's ability to consistently invest in growth.

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 its aluminum products, which are sold to a wide range of industries including construction, transportation, and consumer electronics. The company has established several key revenue streams, including direct sales to manufacturers, distribution agreements with retailers, and customized solutions for large-scale projects. Additionally, Xingfa benefits from strategic partnerships with construction firms and other industrial clients that require high-quality aluminum materials for their projects. The company’s focus on technological advancements and product diversification further enhances its market position and contributes to its earnings.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.83B	18.85B	17.35B	16.93B	15.43B	11.89B
Gross Profit	1.63B	1.76B	1.99B	1.77B	1.81B	1.63B
EBITDA	1.46B	1.53B	1.43B	1.07B	1.46B	1.31B
Net Income	718.54M	826.03M	804.17M	457.77M	887.80M	765.38M
Balance Sheet
Total Assets	16.02B	14.54B	12.87B	12.10B	11.34B	8.44B
Cash, Cash Equivalents and Short-Term Investments	2.70B	2.73B	2.84B	1.85B	1.64B	509.64M
Total Debt	3.44B	2.88B	3.15B	2.51B	1.76B	1.14B
Total Liabilities	10.08B	8.63B	7.54B	7.44B	6.86B	4.74B
Stockholders Equity	5.92B	5.90B	5.32B	4.65B	4.48B	3.70B
Cash Flow
Free Cash Flow	648.63M	459.66M	485.69M	-184.33M	646.46M	534.48M
Operating Cash Flow	1.42B	1.42B	1.47B	790.77M	1.33B	973.40M
Investing Cash Flow	-1.35B	-884.65M	-836.70M	-890.39M	-604.82M	-209.97M
Financing Cash Flow	-242.06M	-647.88M	358.69M	326.51M	408.78M	-781.45M

Xingfa Aluminium Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0098, the sentiment is Negative. The current price of 7.24 is below the 20-day moving average (MA) of 7.39, below the 50-day MA of 7.49, and below the 200-day MA of 7.71, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.25 is Neutral, neither overbought nor oversold. The STOCH value of 5.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	78 Outperform	HK$352.60B	11.74	24.18%	5.10%	15.38%	41.07%
0098	75 Outperform	HK$3.03B	3.86	12.58%	8.68%	10.71%	-22.12%
2600	73 Outperform	HK$259.82B	17.07	19.96%	3.32%	20.06%	20.03%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0609	61 Neutral	HK$1.29B	20.03	2.46%	3.52%	-5.29%	-32.47%
0581	54 Neutral	$5.14B	17.94	1.16%	0.76%	-14.11%	―
2078	49 Neutral	HK$161.92M	-38.29	-0.59%	―	-26.79%	-112.82%

Xingfa Aluminium Holdings Ltd. Corporate Events

Xingfa Aluminium Renews 2025 Connected Tenancy Deals for Mainland Production Facilities

Xingfa Aluminium has renewed its connected tenancy arrangements for 2025 through its subsidiaries Henan Xingfa and Jiangxi Xingfa, which entered into new tenancy agreements with Henan Jingxing and Jiangxi Jingxing for leasing production plants and related facilities. As both Jingxing entities are indirect non-wholly owned subsidiaries of substantial shareholder China Lesso, the leases constitute continuing connected transactions under Hong Kong listing rules; however, with applicable percentage ratios above 0.1% but below 5%, they are only subject to reporting, announcement and annual review requirements, and are exempt from circular and independent shareholders’ approval, providing ongoing operational continuity while maintaining regulatory compliance for related-party transactions.

The most recent analyst rating on (HK:0098) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Xingfa Aluminium Holdings Ltd. stock, see the HK:0098 Stock Forecast page.