Heng Tai Consumables Group (0197) AI Stock Analysis

• Market Cap: HK$69.04M
• Dividend Yield: N/A
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -3.16%
• EPS Growth: 33.72%
• Country: HK
• Employees: 250
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): -0.93
• Shares Outstanding: 209,210,450
• 10 Day Avg. Volume: 2,002,423
• 30 Day Avg. Volume: 1,743,768
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.04
• Price to Sales (P/S): 0.07
• P/FCF Ratio: -0.54
• 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: 51 Neutral
• Price Target: HK$0.50 ▲(72.41% Upside)

Heng Tai Consumables Group's overall stock score is primarily influenced by its poor financial performance, with significant losses and negative cash flow trends. Despite these challenges, the stock exhibits positive short-term technical momentum. However, the negative valuation metrics, such as a negative P/E ratio, further indicate financial distress, resulting in a low overall score.

Positive Factors

Extensive Distribution Network

The company's strong distribution network in the Greater China region enhances its ability to reach a broad customer base, supporting long-term revenue stability and market presence.

Diverse Revenue Streams

Diversification across multiple revenue streams reduces dependency on a single market, providing resilience against sector-specific downturns and supporting sustainable growth.

Low Debt Levels

Low leverage indicates financial prudence and reduces risk, allowing the company to maintain flexibility in capital allocation and withstand economic fluctuations.

Negative Factors

Declining Revenue

A persistent decline in revenue suggests weakening market demand or competitive pressures, which could undermine long-term growth prospects and market position.

Negative Cash Flow Trends

Negative cash flow from operations indicates inefficiencies and potential liquidity issues, which could hinder the company's ability to invest in growth initiatives and manage debt.

Consistent Operating Losses

Ongoing operating losses reflect challenges in achieving profitability, which may limit the company's ability to invest in strategic initiatives and compete effectively in the market.

Heng Tai Consumables Group Business Overview & Revenue Model

Company Description

Heng Tai Consumables Group Limited, an investment holding company, trades in packaged foods, beverages, and household consumables in the People's Republic of China. It operates through three segments: FMCG Trading Business, Agri-Products Business, and Logistics Services Business. The FMCG Trading Business segment offers packaged foods, such as biscuits, candies, chocolates, condiments, margarine and milk powder products, healthy foods, noodles, snacks, rice, potato chips, pasta, etc.; beverages, including soft drinks, fruit juices, etc.; and household consumable products comprising facial and toilet tissues, household cleaning products, etc. The Agri-Products Business segment engages in the cultivation, sale, and trading of fresh and processed fruits and vegetables. The Logistics Services Business segment provides cold chain logistics, warehousing, and other third party logistics services, as well as provides food pre-preparation services for fast food restaurants chains, central kitchens, and hotels and casinos. This segment also owns and operates trucking fleets for national and regional distribution, as well as logistics centers. The company also provides livestock breeding, and treasury and administrative services; offers securities brokerage services; engages in the tourist retailing of jewelry products; and operates packing houses and distribution depots. Heng Tai Consumables Group Limited was founded in 1986 and is headquartered in Sheung Wan, Hong Kong.

How the Company Makes Money

Heng Tai Consumables Group generates revenue through the sale and distribution of packaged foods, beverages, and household consumables. The company's revenue model is centered around its FMCG trading business, which involves importing and distributing various consumable products to retail and wholesale markets. Additionally, Heng Tai earns income from its agricultural business, which includes the cultivation and sale of fresh produce. The company also offers logistics services to support its distribution activities, which further contributes to its revenue streams. Significant partnerships with suppliers and retailers enhance its market presence and distribution capabilities, thereby playing a crucial role in its financial performance.

Heng Tai Consumables Group Financial Statement Overview

Summary

Heng Tai Consumables Group is facing serious financial difficulties characterized by declining revenues, persistent operating losses, and negative cash flows. The company's balance sheet stability is undermined by poor returns on equity and ineffective cash management.

Income Statement

Heng Tai Consumables Group has experienced declining revenues, with a negative growth trajectory in recent years. The gross profit margin has decreased, indicating reduced efficiency in managing production costs. The company has consistently reported negative EBIT, EBITDA, and net profit margins, reflecting ongoing operating losses and challenges in achieving profitability.

Balance Sheet

The company's balance sheet shows a relatively stable equity base, but the debt-to-equity ratio is low, suggesting limited leverage. However, the return on equity is negative due to consistent net losses, indicating poor returns for shareholders. The equity ratio suggests a strong reliance on equity financing, which may provide stability but highlights the inability to generate returns on equity.

Cash Flow

Cash flows reveal a negative operating cash flow trend, indicating challenges in generating cash from core operations. Free cash flow has also been negative, exacerbating cash management issues. The high free cash flow to net income ratio is misleading due to the negative net income, highlighting the need for improved cash management and operational efficiency.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	438.70M	441.95M	440.60M	501.22M	520.25M	541.91M
Gross Profit	29.55M	36.63M	31.48M	19.84M	17.51M	32.08M
EBITDA	-146.43M	-153.73M	-97.88M	-166.73M	-196.93M	-255.38M
Net Income	-191.86M	-196.45M	-125.60M	-216.13M	-247.21M	-318.34M
Balance Sheet
Total Assets	841.97M	869.56M	1.07B	1.22B	1.41B	1.63B
Cash, Cash Equivalents and Short-Term Investments	69.63M	86.20M	126.71M	253.84M	235.47M	531.08M
Total Debt	7.13M	6.00M	17.77M	23.31M	21.21M	28.49M
Total Liabilities	89.48M	82.67M	103.44M	116.21M	121.68M	125.35M
Stockholders Equity	752.49M	786.89M	970.07M	1.11B	1.30B	1.52B
Cash Flow
Free Cash Flow	-29.87M	-58.43M	-41.17M	-79.35M	-158.08M	-107.09M
Operating Cash Flow	-2.86M	-22.31M	-2.94M	-6.40M	-123.54M	-15.35M
Investing Cash Flow	-39.55M	-34.99M	39.47M	-113.36M	-29.69M	-115.46M
Financing Cash Flow	15.55M	5.90M	-4.41M	-5.99M	-7.65M	-1.11M

Heng Tai Consumables Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.29
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0197, the sentiment is Positive. The current price of 0.29 is above the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.31, and below the 200-day MA of 0.30, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.85 is Neutral, neither overbought nor oversold. The STOCH value of 78.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0197.

Heng Tai Consumables Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2419	71 Outperform	HK$10.98B	6.95	47.64%	1.33%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1084	59 Neutral	HK$542.98M	18.23	3.41%	1.88%	-10.60%	―
0197	51 Neutral	HK$69.04M	-0.28	-30.07%	―	-3.16%	33.72%
0682	48 Neutral	HK$58.33M	-3.13	-7.84%	―	-15.08%	12.98%
0073	45 Neutral	HK$25.78M	-0.99	-19.29%	―	-55.40%	14.13%

Heng Tai Consumables Group Corporate Events

Heng Tai Consumables to Acquire Target Company in HK$972,000 Discloseable Deal

Heng Tai Consumables Group Limited has agreed, via its wholly owned subsidiary Shining Impact Limited, to acquire the entire issued share capital of an unnamed target company from independent vendor Ms. Tong Kim Ngan for HK$972,000. The consideration, set with reference to the target’s audited net assets of about HK$972,000 as of 31 March 2025 and its recent financial performance, will be paid in full on completion and constitutes a discloseable transaction under Hong Kong Listing Rules, triggering reporting and announcement requirements; completion remains conditional on satisfaction or waiver of agreed conditions, and the company has cautioned shareholders and potential investors that the deal may or may not proceed.

The most recent analyst rating on (HK:0197) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Heng Tai Consumables Group stock, see the HK:0197 Stock Forecast page.

Heng Tai Wins Strong Shareholder Backing for All Resolutions at 2025 AGM

Heng Tai Consumables Group Limited reported that all resolutions proposed at its 2025 annual general meeting, held on 23 December 2025, were duly passed by shareholders by way of poll, with an overwhelming majority of votes in favour on each item. Shareholders approved the audited financial statements for the year ended 30 June 2025, the re-election of executive and independent non-executive directors, authorisation for the board to fix directors’ and auditor’s remuneration, and the renewal of general mandates to issue up to 20% of the company’s shares and repurchase up to 10%, as well as an extension mandate, reinforcing the board’s flexibility in capital management and signalling broad investor support for the current management and strategic direction.

The most recent analyst rating on (HK:0197) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Heng Tai Consumables Group stock, see the HK:0197 Stock Forecast page.

Heng Tai Consumables Group Announces AGM and Share Issuance Plans

Heng Tai Consumables Group Limited has announced the closure of its register of members from December 18 to December 23, 2025, to determine eligibility for attending and voting at its upcoming Annual General Meeting (AGM). The AGM will address standard business matters such as the adoption of financial statements, re-election of directors, and re-appointment of auditors. Additionally, a special resolution will be considered to authorize the board to allot and issue shares under specific conditions, potentially impacting the company’s share capital structure.

The most recent analyst rating on (HK:0197) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Heng Tai Consumables Group stock, see the HK:0197 Stock Forecast page.

Heng Tai Completes Share Placement and Subscription, Raising HK$14.2 Million

Heng Tai Consumables Group Limited has successfully completed a placing and top-up subscription of shares, raising approximately HK$14.2 million in net proceeds. The funds will be used for refurbishing and upgrading logistics facilities in Shanghai, expanding processing capabilities in Dongguan, and supporting general working capital needs, which could enhance the company’s operational efficiency and market positioning.

The most recent analyst rating on (HK:0197) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Heng Tai Consumables Group stock, see the HK:0197 Stock Forecast page.