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Heng Tai Consumables Group (HK:0197)
:0197
Hong Kong Market

Heng Tai Consumables Group (0197) AI Stock Analysis

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HK

Heng Tai Consumables Group

(0197)

Rating:43Neutral
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 (0197) vs. iShares MSCI Hong Kong ETF (EWH)

Heng Tai Consumables Group Business Overview & Revenue Model

Company DescriptionHeng 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 MoneyHeng 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
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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue438.70M441.95M440.60M501.22M520.25M541.91M
Gross Profit29.55M36.63M31.48M19.84M17.51M32.08M
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 Assets841.97M869.56M1.07B1.22B1.41B1.63B
Cash, Cash Equivalents and Short-Term Investments69.63M86.20M138.89M270.01M252.57M531.08M
Total Debt7.13M6.00M17.77M23.31M21.21M28.49M
Total Liabilities89.48M82.67M103.44M116.21M121.68M125.35M
Stockholders Equity752.49M786.89M970.07M1.11B1.30B1.52B
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-34.99M31.73M-118.18M-22.64M-115.46M
Financing Cash Flow15.55M5.90M-4.41M-5.99M-7.65M-1.11M

Heng Tai Consumables Group Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.18
Price Trends
50DMA
0.17
Positive
100DMA
0.16
Positive
200DMA
0.21
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
48.54
Neutral
STOCH
26.04
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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
HK$13.52B7.50
1.13%
56
Neutral
HK$7.90B6.73-0.67%10.14%0.07%-13.06%
51
Neutral
HK$620.55M8.927.87%1.67%-17.35%
49
Neutral
HK$36.25M-9.29%-17.34%-108.70%
43
Neutral
HK$32.15M-22.83%0.23%-43.18%
38
Underperform
$21.61M-20.62%-6.38%54.30%
* Consumer Goods Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0197
Heng Tai Consumables Group
0.18
-0.08
-30.77%
HK:1084
Green Future Food Hydrocolloid Marine Science Co., Ltd.
0.72
0.01
1.41%
HK:0682
Chaoda Modern Agriculture Holdings
0.22
-0.38
-63.27%
HK:0073
Asian Citrus Holdings
1.45
-1.32
-47.65%
HK:2419
Dekon Food And Agriculture Group Class H
85.80
36.17
72.88%

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: Jun 28, 2025