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Heng Tai Consumables Group (HK:0197)
:0197
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Heng Tai Consumables Group (0197) AI Stock Analysis

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HK:0197

Heng Tai Consumables Group

(0197)

Rating:39Underperform
Price Target:
HK$0.50
▲(61.29%Upside)
The overall stock score is primarily impacted by the company's financial performance, which indicates significant challenges due to declining revenues and persistent losses. Technical analysis suggests some positive momentum, but the valuation remains a concern due to negative profitability metrics.

Heng Tai Consumables Group (0197) vs. iShares MSCI Hong Kong ETF (EWH)

Heng Tai Consumables Group Business Overview & Revenue Model

Company DescriptionHeng 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 MoneyHeng 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 faces significant financial challenges with declining revenues, persistent losses, and negative cash flows. While the balance sheet remains relatively stable with low leverage, the continual net losses and negative cash flow trends indicate a need for strategic improvements to enhance operational efficiency, profitability, and cash management.
Income Statement
20
Very Negative
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
30
Negative
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
25
Negative
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue441.95M440.60M501.22M520.25M541.91M
Gross Profit36.63M31.48M19.84M17.51M32.08M
EBITDA-153.73M-97.88M-166.73M-196.93M-255.38M
Net Income-196.45M-125.60M-216.13M-247.21M-318.34M
Balance Sheet
Total Assets869.56M1.07B1.22B1.41B1.63B
Cash, Cash Equivalents and Short-Term Investments86.20M138.89M270.01M252.57M531.08M
Total Debt6.00M17.77M23.31M21.21M28.49M
Total Liabilities82.67M103.44M116.21M121.68M125.35M
Stockholders Equity786.89M970.07M1.11B1.30B1.52B
Cash Flow
Free Cash Flow-58.43M-41.17M-79.35M-158.08M-107.09M
Operating Cash Flow-22.31M-2.94M-6.40M-123.54M-15.35M
Investing Cash Flow-34.99M31.73M-118.18M-22.64M-115.46M
Financing Cash Flow5.90M-4.41M-5.99M-7.65M-1.11M

Heng Tai Consumables Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.31
Price Trends
50DMA
0.20
Positive
100DMA
0.17
Positive
200DMA
0.21
Positive
Market Momentum
MACD
0.03
Negative
RSI
68.25
Neutral
STOCH
63.15
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 0.31 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.20, and above the 200-day MA of 0.21, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 68.25 is Neutral, neither overbought nor oversold. The STOCH value of 63.15 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
HK$11.82B7.49-17.93%5.49%-1.38%-33.09%
39
Underperform
HK$55.37M-22.83%0.23%-43.18%
$4.72M-9.29%
$4.23M-20.62%
51
Neutral
HK$620.55M8.927.87%2.22%-17.35%
HK$89.96M
80
Outperform
HK$15.36B8.52
0.99%
* Consumer Goods Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0197
Heng Tai Consumables Group
0.31
0.01
3.33%
CMGHF
Chaoda Modern Agriculture Holdings
0.02
-0.02
-50.00%
ACITF
Asian Citrus Holdings
0.20
0.19
1900.00%
HK:1084
Green Future Food Hydrocolloid Marine Science Co., Ltd.
0.72
-0.03
-4.00%
HK:1699
China Putian Food Holding Ltd.
0.04
0.00
0.00%
HK:2419
Dekon Food And Agriculture Group Class H
97.45
48.11
97.51%

Heng Tai Consumables Group Corporate Events

Heng Tai Executive Director Declared Bankrupt, Company Unaffected
Apr 22, 2025

Heng Tai Consumables Group Limited announced that Mr. Mok Tsan San, an executive director, has been declared bankrupt by the High Court of Hong Kong, leading to the vacation of his office as per the company’s articles of association. The company clarified that this development pertains solely to Mr. Mok and does not affect the group’s business operations or financial health.

Heng Tai Consumables Group Announces Board Composition and Roles
Apr 22, 2025

Heng Tai Consumables Group Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. The board comprises both executive and independent non-executive directors, with specific members assigned to various committees such as audit, remuneration, and nomination. This announcement is significant as it outlines the governance structure of the company, which is crucial for stakeholders to understand the leadership and decision-making processes that may impact the company’s strategic direction and operational efficiency.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025