SANVO Fine Chemicals Group Limited (0301) AI Stock Analysis

• Market Cap: HK$625.71M
• Dividend Yield: N/A
• Average Volume (3M): 558.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: 0.35%
• EPS Growth: -153.95%
• Country: HK
• Employees: 1,350
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.03
• Shares Outstanding: 470,459,750
• 10 Day Avg. Volume: 528,620
• 30 Day Avg. Volume: 558,033
• PEG Ratio: 0.06
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 24.38
• 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: 56 Neutral
• Price Target: HK$2.00 ▲(49.25% Upside)

The overall stock score of 56 reflects significant financial challenges, particularly in profitability and leverage, despite some positive cash flow trends. Technical analysis indicates strong bullish momentum, but the overbought RSI suggests caution. Valuation metrics are weak due to negative earnings and lack of dividends.

Positive Factors

Revenue Growth

The company has shown a revenue growth rate of 35.4%, indicating strong demand for its products and an expanding market presence.

Cash Flow Improvement

Improved operating cash flow and positive free cash flow suggest better cash management and potential for reinvestment in growth initiatives.

Product Innovation

Continued investment in R&D supports product innovation, helping the company meet evolving client needs and maintain competitive advantage.

Negative Factors

High Leverage

High leverage with a debt-to-equity ratio of 1.25 poses financial risks, potentially limiting flexibility and increasing vulnerability to economic downturns.

Profitability Challenges

Negative net profit margin highlights significant profitability challenges, affecting the company's ability to generate sustainable earnings.

Declining EBIT Margins

Decreasing EBIT and EBITDA margins indicate operational inefficiencies, which could hinder long-term profitability and competitiveness.

SANVO Fine Chemicals Group Limited Business Overview & Revenue Model

Company Description

SANVO Fine Chemicals Group Limited, an investment holding company, researches and develops, manufactures, and sells fine industrial chemical products in the People's Republic of China, Australia, and internationally. The company operates through three segments: Aerosols, Organic Silicone Adhesives, and Synthetic Adhesive. The Aerosols segment offers spray paints and automotive care products, including spray paints, carburetor cleaners, spray waxes, anti-rust spray lubricants, polyurethane foams, cleaning sprays, and spray refrigerants for automobile air-conditioners. The Organic Silicone Adhesives segment provides silicone-based adhesive. The Synthetic Adhesive segment engages in the sale of multi-purpose contact adhesives. The company's products are used for hardware and building materials, and automotive maintenance applications. It sells its products under the SANVO and FullTeam brand names. SANVO Fine Chemicals Group Limited was founded in 1993 and is headquartered in Zhongshan, the People's Republic of China. SANVO Fine Chemicals Group Limited is a subsidiary of Sanvo Fine Chemicals Limited.

How the Company Makes Money

SANVO Fine Chemicals Group Limited generates revenue through multiple channels, primarily by offering tailored chemical solutions to its customers in various industries. The company’s revenue model is based on the sale of fine chemicals, which includes both standard products and custom synthesis services. Key revenue streams are derived from long-term contracts with pharmaceutical and agricultural companies that require specialized chemical formulations. Additionally, SANVO benefits from strategic partnerships with industry leaders, which enhance its market reach and product development capabilities. The company's ability to innovate and adapt its offerings based on market demands also plays a crucial role in sustaining its earnings.

SANVO Fine Chemicals Group Limited Financial Statement Overview

Summary

SANVO Fine Chemicals Group Limited exhibits mixed financial health. The company struggles with profitability as evidenced by negative net income and declining EBIT margins. While cash flow improvements are visible, significant leverage and reduced equity position highlight potential financial risks. Stabilizing revenues and enhancing operational efficiency are critical for future growth.

Income Statement

The company experienced a decline in revenue from 2023 to 2024. Gross profit margin is stable around 29-30%, but the net profit margin turned negative due to substantial losses, indicating profitability challenges. EBIT and EBITDA margins have also decreased significantly, highlighting issues with operational efficiency.

Balance Sheet

The balance sheet shows an increase in total assets, but the debt-to-equity ratio is high at 1.25, signaling significant leverage. The equity ratio remains modest, suggesting moderate financial stability. Return on equity has deteriorated due to negative net income, posing potential risks.

Cash Flow

Operating cash flow increased notably from 2023, and free cash flow turned positive. However, the free cash flow to net income ratio is low, reflecting operational struggles. The company shows signs of improving cash generation but faces profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	1.06B	1.08B	947.85M	983.11M	839.99M
Gross Profit	329.48M	314.44M	311.94M	260.99M	261.92M	268.94M
EBITDA	4.11M	7.03M	34.97M	20.71M	28.77M	81.85M
Net Income	-32.13M	-19.93M	6.21M	4.49M	14.02M	65.82M
Balance Sheet
Total Assets	901.55M	875.45M	773.33M	789.36M	717.96M	665.11M
Cash, Cash Equivalents and Short-Term Investments	48.95M	61.32M	38.18M	90.50M	17.93M	77.17M
Total Debt	263.90M	267.62M	230.80M	243.87M	197.72M	182.46M
Total Liabilities	696.14M	661.17M	541.50M	567.71M	485.50M	438.40M
Stockholders Equity	205.41M	214.28M	231.79M	221.65M	232.46M	226.71M
Cash Flow
Free Cash Flow	5.64M	19.37M	4.84M	18.71M	-3.62M	12.18M
Operating Cash Flow	74.05M	88.80M	42.89M	58.60M	54.30M	110.97M
Investing Cash Flow	-64.69M	-92.83M	-60.86M	-8.34M	-83.36M	-116.84M
Financing Cash Flow	-32.28M	22.89M	-32.58M	26.67M	-32.72M	68.21M

SANVO Fine Chemicals Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0301, the sentiment is Neutral. The current price of 1.34 is below the 20-day moving average (MA) of 1.35, below the 50-day MA of 1.40, and above the 200-day MA of 1.27, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.46 is Neutral, neither overbought nor oversold. The STOCH value of 14.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0301.

SANVO Fine Chemicals Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0640	77 Outperform	HK$829.95M	6.04	20.67%	8.71%	25.95%	44.12%
0408	69 Neutral	HK$1.07B	8.26	3.36%	7.85%	-5.37%	25.20%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0301	56 Neutral	HK$625.71M	-18.00	-14.53%	―	0.35%	-153.95%
1986	54 Neutral	HK$771.20M	-26.58	-1.52%	5.55%	0.37%	-331.54%
0701	49 Neutral	HK$375.03M	-3.73	-8.05%	―	-24.13%	-27.54%
1932	48 Neutral	HK$138.00M	-2.22	-15.93%	―	-25.21%	12.04%

SANVO Fine Chemicals Group Limited Corporate Events

SANVO Fine Chemicals Announces Share Awards to Employees

SANVO Fine Chemicals Group Limited has announced the grant of 8,835,300 award shares to 157 employees under its 2023 Share Award Scheme. This initiative aims to incentivize employees, with shares vesting by November 2026, provided continuous employment is maintained. The grant does not include performance targets but has a clawback mechanism for specific misconduct, potentially impacting employee retention and motivation strategies.

The most recent analyst rating on (HK:0301) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on SANVO Fine Chemicals Group Limited stock, see the HK:0301 Stock Forecast page.