Continental Aerospace Technologies Holding Ltd. (0232) AI Stock Analysis

• Market Cap: HK$1.19B
• Dividend Yield: 3.85%
• Average Volume (3M): 9.97M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.85
• Revenue Growth: 20.53%
• EPS Growth: 28.42%
• Country: HK
• Employees: 604
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): <0.01
• Shares Outstanding: 9,303,375,000
• 10 Day Avg. Volume: 8,609,215
• 30 Day Avg. Volume: 9,971,261
• PEG Ratio: -0.27
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.55
• P/FCF Ratio: -19.72
• 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: 61 Neutral
• Price Target: HK$0.14 ▲(6.92% Upside)

The overall stock score of 61 reflects a balanced view of Continental Aerospace Technologies Holding Ltd. The company's strong financial foundation and reasonable valuation are offset by recent declines in profitability and weak technical indicators. The absence of earnings call insights and corporate events limits the analysis to financial and market data.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for the company's products and services, suggesting a solid market position and potential for future expansion.

Equity Management

A strong equity position with low reliance on debt enhances financial stability and reduces risk, providing a solid foundation for sustainable growth.

EPS Growth

Significant EPS growth reflects effective management and operational efficiency, enhancing shareholder value and supporting long-term profitability.

Negative Factors

Profitability Decline

Declining profitability can impact the company's ability to reinvest in growth and innovation, potentially weakening its competitive position over time.

Cash Flow Volatility

Fluctuating cash flow raises concerns about liquidity management, which could affect the company's ability to fund operations and strategic initiatives.

Margin Pressure

Decreasing margins may indicate rising costs or pricing pressures, which could erode profitability and challenge the company's competitive edge.

Continental Aerospace Technologies Holding Ltd. Business Overview & Revenue Model

Company Description

Continental Aerospace Technologies Holding Ltd. is a prominent player in the aerospace sector, specializing in the design, manufacture, and support of advanced aircraft engines and components. The company primarily serves the general aviation and aerospace markets, providing high-performance products that enhance the efficiency and safety of various aircraft types. With a commitment to innovation and quality, Continental Aerospace Technologies focuses on delivering reliable solutions that meet the evolving needs of its global customer base.

How the Company Makes Money

The company generates revenue through multiple streams, primarily from the sale of aircraft engines, components, and related aftermarket services. Key revenue sources include direct sales to aircraft manufacturers, distributors, and end-users in the aviation sector. Additionally, Continental Aerospace Technologies benefits from maintenance, repair, and overhaul (MRO) services, which provide ongoing revenue as customers seek to maintain and upgrade their aircraft. The company may also engage in strategic partnerships with other aerospace firms and suppliers to enhance its product offerings and expand its market reach, contributing to its overall earnings.

Continental Aerospace Technologies Holding Ltd. Financial Statement Overview

Summary

Continental Aerospace Technologies Holding Ltd. shows a solid financial foundation with strengths in revenue growth and equity management. However, recent declines in profitability and cash flow indicate potential challenges that need addressing to maintain its positive trajectory.

Income Statement

The company has shown a positive trajectory in revenue growth over the years, with a notable increase from 2020 to 2023. However, there was a slight dip in 2024. Gross profit margins have generally been stable, though there was a reduction in 2024. Net profit margin also declined in 2024. Despite these recent declines, past growth and profitability indicate a strong competitive position.

Balance Sheet

The company maintains a healthy equity position with a low debt-to-equity ratio, showcasing strong financial stability. Stockholders' equity has been improving, reflecting strong capital management. The equity ratio is high, indicating a majority of the company is financed by equity rather than debt, which reduces financial risk.

Cash Flow

The cash flow situation is mixed. While there was strong free cash flow in 2022, 2023 saw a significant decline. Operating cash flow has fluctuated over the years, with periods of negative cash flow. The absence of recent operating cash flow raises concerns about short-term liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.03B	1.81B	1.83B	1.67B	1.42B	1.25B
Gross Profit	533.36M	476.70M	567.57M	508.49M	348.41M	182.20M
EBITDA	216.53M	184.51M	245.76M	180.72M	138.71M	-624.07M
Net Income	113.25M	56.01M	162.21M	50.83M	-55.97M	-756.74M
Balance Sheet
Total Assets	4.11B	3.95B	3.98B	3.80B	3.76B	4.18B
Cash, Cash Equivalents and Short-Term Investments	807.82M	799.46M	875.28M	824.75M	623.12M	914.07M
Total Debt	290.00M	288.59M	289.35M	294.10M	311.02M	567.80M
Total Liabilities	1.04B	975.16M	983.60M	980.96M	978.80M	1.33B
Stockholders Equity	3.07B	2.98B	3.00B	2.82B	2.78B	2.85B
Cash Flow
Free Cash Flow	228.55M	-50.49M	42.93M	205.19M	-77.04M	-158.14M
Operating Cash Flow	272.99M	37.36M	138.85M	283.39M	-8.42M	3.95M
Investing Cash Flow	-60.24M	18.15M	-456.89M	-323.74M	-59.68M	-105.59M
Financing Cash Flow	-56.70M	-53.70M	-14.22M	-1.13M	-236.89M	17.56M

Continental Aerospace Technologies Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.13
• 50DMA: Negative
• 100DMA: Negative
• 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:0232, the sentiment is Negative. The current price of 0.13 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.13, and above the 200-day MA of 0.13, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.52 is Neutral, neither overbought nor oversold. The STOCH value of 49.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0232.

Continental Aerospace Technologies Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1977	79 Outperform	HK$1.29B	9.59	6.02%	5.05%	-7.60%	37.99%
2357	66 Neutral	$31.01B	14.61	5.91%	2.22%	16.93%	-9.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0232	61 Neutral	HK$1.19B	10.49	3.91%	3.85%	20.53%	28.42%
0317	61 Neutral	€35.93B	23.43	4.69%	1.19%	10.08%	299.38%
0439	47 Neutral	HK$763.46M	-18.90	-1.99%	―	-5.59%	-1071.43%
1725	41 Neutral	HK$543.67M	-2.22	-98.45%	―	-32.75%	38.59%

Continental Aerospace Technologies Holding Ltd. Corporate Events

Continental Aerospace Technologies Reports Strong Interim Results for 2025

Continental Aerospace Technologies Holding Ltd. reported a significant increase in its financial performance for the first half of 2025, with revenue rising to HK$1,005,250,000 from HK$781,805,000 in the same period last year. The company’s profit before tax also saw a substantial rise, reaching HK$75,015,000 compared to HK$8,567,000 in 2024, indicating improved operational efficiency and market positioning.

Continental Aerospace Technologies Projects Significant Profit Increase for H1 2025

Continental Aerospace Technologies Holding Limited has issued a positive profit alert, expecting to report a profit after tax of no less than HK$55 million for the first half of 2025. This significant increase in profit is attributed to enhanced production capacity, the completion of a new factory, and improved operational systems, leading to higher order deliveries and revenue growth.

Continental Aerospace Technologies to Announce Interim Results and Dividend Consideration

Continental Aerospace Technologies Holding Limited has announced that its board of directors will meet on August 28, 2025, to approve the interim results for the first half of 2025 and consider the payment of an interim dividend. This meeting is significant as it may impact the company’s financial strategy and shareholder returns, reflecting its operational performance and market positioning.