Heng Tai Consumables Group (0197) AI Stock Analysis

• Market Cap: HK$66.98M
• Dividend Yield: N/A
• Average Volume (3M): 732.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 0.23%
• EPS Growth: -43.18%
• Country: HK
• Employees: 250
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Agricultural Farm Products
• EPS (TTM): -0.22
• Shares Outstanding: 178,605,450
• 10 Day Avg. Volume: 268,534
• 30 Day Avg. Volume: 732,788
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$0.50
• Price Target Upside: 28.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: HK$0.50 ▲(28.21% 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.

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 packaged foods, beverages, household consumables, and agricultural products. The company operates through several segments including the FMCG trading business, agriculture business, and logistics services. With a focus on the Greater China region, Heng Tai provides a wide range of consumable goods to cater to the demands of its customers, leveraging its extensive distribution network.

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 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

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	441.95M	440.60M	501.22M	520.25M	541.91M
Gross Profit	36.63M	31.48M	19.84M	17.51M	32.08M
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 Assets	869.56M	1.07B	1.22B	1.41B	1.63B
Cash, Cash Equivalents and Short-Term Investments	86.20M	138.89M	270.01M	252.57M	531.08M
Total Debt	6.00M	17.77M	23.31M	21.21M	28.49M
Total Liabilities	82.67M	103.44M	116.21M	121.68M	125.35M
Stockholders Equity	786.89M	970.07M	1.11B	1.30B	1.52B
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	-34.99M	31.73M	-118.18M	-22.64M	-115.46M
Financing Cash Flow	5.90M	-4.41M	-5.99M	-7.65M	-1.11M

Heng Tai Consumables Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.39
• 50DMA: Positive
• 100DMA: Positive
• 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:0197, the sentiment is Positive. The current price of 0.39 is above the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.27, and above the 200-day MA of 0.21, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 60.61 is Neutral, neither overbought nor oversold. The STOCH value of 32.05 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	80 Outperform	HK$12.35B	7.77	47.64%	1.24%	―	―
Sector *	62 Neutral	HK$21.94B	8.04	5.51%	4.79%	1.36%	-26.45%
0197	51 Neutral	HK$66.98M	―	-22.83%	―	0.23%	-43.18%
1084	51 Neutral	HK$603.32M	8.67	7.87%	1.85%	-17.35%	―
0682	48 Neutral	HK$37.90M	―	-9.29%	―	-17.34%	-108.70%
0073	46 Neutral	HK$29.80M	―	-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.