Heng Tai Consumables Group (0197) AI Stock Analysis

• Market Cap: HK$32.15M
• Dividend Yield: N/A
• Average Volume (3M): 369.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: 0.23%
• EPS Growth: -43.18%
• Country: HK
• Employees: 250
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Agricultural Farm Products
• EPS (TTM): -1.55
• Shares Outstanding: 178,605,450
• 10 Day Avg. Volume: 119,261
• 30 Day Avg. Volume: 369,721
• PEG Ratio: -0.02
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.30
• 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

• Rating: 43 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

Heng Tai Consumables Group's stock score reflects significant financial weaknesses with persistent losses and negative cash flows. While technical indicators suggest mixed signals, valuation challenges due to negative earnings further weigh on the overall score. The absence of positive earnings call or corporate events data limits any potential upside.

Heng Tai Consumables Group Business Overview & Revenue Model

Company Description

Heng Tai Consumables Group (0197) is a diversified investment holding company primarily engaged in the distribution of fast-moving consumer goods (FMCG), agriculture, and logistics services. The company operates through several segments, including packaged food, beverages, personal care products, and agri-products. Heng Tai is known for its extensive distribution network and its focus on supplying high-quality consumables to the Chinese market.

How the Company Makes Money

Heng Tai Consumables Group generates revenue through its diversified business operations in FMCG distribution, agriculture, and logistics. The company's primary revenue stream comes from the sale and distribution of packaged foods, beverages, and personal care products, leveraging its extensive distribution network across China. Additionally, Heng Tai's agriculture segment contributes to its earnings through the cultivation, processing, and sale of agri-products. The logistics services segment supports these operations by providing efficient supply chain solutions, further enhancing the company's revenue potential. Partnerships with various suppliers and retailers help expand its market reach and optimize its supply chain, contributing to its overall profitability.

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. The balance sheet remains relatively stable with low leverage, but the continual net losses and negative cash flow trends indicate a need for strategic improvements.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
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	138.89M	270.01M	252.57M	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	-37.55M	-34.99M	31.73M	-118.18M	-22.64M	-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: Neutral
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 0.18 is below the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.17, and below the 200-day MA of 0.21, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.54 is Neutral, neither overbought nor oversold. The STOCH value of 26.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	HK$13.52B	7.50		1.13%	―	―
Sector *	56 Neutral	HK$7.90B	6.73	-0.67%	10.14%	0.07%	-13.06%
1084	51 Neutral	HK$620.55M	8.92	7.87%	1.67%	-17.35%	―
0682	49 Neutral	HK$36.25M	―	-9.29%	―	-17.34%	-108.70%
0197	43 Neutral	HK$32.15M	―	-22.83%	―	0.23%	-43.18%
0073	38 Underperform	$21.61M	―	-20.62%	―	-6.38%	54.30%

Heng Tai Consumables Group Corporate Events

Heng Tai Executive Director Declared Bankrupt, Company Unaffected

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

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.