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Huabao International Holdings (HK:0336)
:0336

Huabao International Holdings (0336) AI Stock Analysis

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HK

Huabao International Holdings

(OTC:0336)

Rating:54Neutral
Price Target:
HK$3.00
▼(-3.54%Downside)
Huabao International Holdings' stock score is driven by strong technical momentum but is held back by poor valuation and financial performance concerns. The absence of significant earnings call insights limits further analysis.

Huabao International Holdings (0336) vs. iShares MSCI Hong Kong ETF (EWH)

Huabao International Holdings Business Overview & Revenue Model

Company DescriptionHuabao International Holdings Limited (0336) is a leading investment holding company primarily engaged in the research, development, production, and sale of flavors and fragrances. The company operates through various segments, including flavors, fragrances, aroma raw materials, and tobacco raw materials. It serves a diverse range of industries, including food and beverage, personal care, household products, and tobacco, providing essential ingredients that enhance product appeal and consumer experience.
How the Company Makes MoneyHuabao International Holdings makes money through the sale of its flavors and fragrances to a wide array of industries. The company's revenue model is based on developing and supplying high-quality flavor and fragrance compounds to manufacturers in sectors such as food and beverages, personal care, household products, and tobacco. These products are used to enhance the taste, smell, and overall sensory experience of consumer goods. Additionally, Huabao benefits from its investments in research and development, which enable it to innovate and offer customized solutions to its clients, maintaining a competitive edge. The company may also engage in strategic partnerships and collaborations to expand its market reach and product offerings, contributing to its revenue streams.

Huabao International Holdings Financial Statement Overview

Summary
Huabao International Holdings has mixed financials. The balance sheet is strong with low leverage, but declining revenues and a negative net profit margin highlight profitability challenges. Cash flow issues are a major concern, as 2024 lacked positive free and operating cash flows.
Income Statement
45
Neutral
Huabao International Holdings has faced declining revenue over recent years, with a revenue decrease of 13.5% from 2019 to 2024. The gross profit margin stands at 42.7% in 2024, indicating a reasonable level of profitability, although it has decreased from previous years. The company recorded a net loss in 2024, leading to a negative net profit margin of -11.4%, highlighting profitability concerns and operational challenges.
Balance Sheet
75
Positive
The balance sheet is relatively strong, with a low debt-to-equity ratio of 0.02 in 2024, indicating low financial leverage. The equity ratio is healthy at 80.5%, suggesting strong financial stability. However, the reduction in stockholders' equity over the years may indicate potential risks if this trend continues.
Cash Flow
30
Negative
Cash flow analysis reveals concerns, with free cash flow consistently declining from 2020 onwards. Operating cash flow was zero in 2024, raising alarms about liquidity and cash management. The absence of positive free and operating cash flows in 2024 signals potential cash flow management issues.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.07B3.37B3.31B3.83B3.88B3.85B
Gross Profit
1.31B1.44B1.47B1.88B2.30B2.44B
EBIT
823.99M-401.95M378.05M833.28M1.11B902.79M
EBITDA
955.99M464.38M758.37M-352.00M1.51B1.37B
Net Income Common Stockholders
480.29M-385.51M233.63M-901.05M675.13M668.44M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.89B6.27B6.43B6.36B6.89B6.91B
Total Assets
18.03B15.00B16.00B16.62B18.03B17.68B
Total Debt
1.00B237.75M500.17M738.47M1.00B2.77B
Net Debt
-2.55B-5.32B-2.04B-3.93B-2.55B-2.15B
Total Liabilities
2.31B1.28B1.73B2.06B2.31B3.98B
Stockholders Equity
13.88B12.08B12.48B12.65B13.88B11.87B
Cash FlowFree Cash Flow
120.40M380.94M503.60M307.95M973.52M1.28B
Operating Cash Flow
298.10M679.70M965.27M798.75M1.41B1.46B
Investing Cash Flow
334.82M1.01B-2.60B1.24B-2.10B1.18B
Financing Cash Flow
-1.62B-646.39M-674.20M-997.63M-672.72M-1.03B

Huabao International Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.11
Price Trends
50DMA
2.59
Positive
100DMA
2.40
Positive
200DMA
2.32
Positive
Market Momentum
MACD
0.18
Positive
RSI
57.63
Neutral
STOCH
31.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0336, the sentiment is Positive. The current price of 3.11 is above the 20-day moving average (MA) of 2.93, above the 50-day MA of 2.59, and above the 200-day MA of 2.32, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 57.63 is Neutral, neither overbought nor oversold. The STOCH value of 31.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0336.

Huabao International Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
€17.90B7.1712.81%6.03%-2.74%-27.33%
74
Outperform
HK$877.83M9.102.51%14.10%-1.70%12.53%
58
Neutral
HK$743.97M55.38-1.16%7.59%2.49%-171.78%
55
Neutral
HK$9.64B-4.12%83.59%-23.60%
54
Neutral
HK$10.05B68.85-3.15%4.81%0.17%-260.67%
51
Neutral
HK$2.02B101.630.59%-21.05%-87.68%
51
Neutral
$2.04B-1.26-21.09%3.98%2.91%-30.49%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0336
Huabao International Holdings
3.11
0.57
22.44%
HK:1986
Tsaker New Energy Tech Co., Limited
0.79
-0.18
-18.56%
HK:1440
Deyun Holding Ltd.
7.65
3.93
105.65%
HK:0546
Fufeng Group Limited
7.06
2.01
39.66%
HK:0408
Yip's Chemical Holdings
1.56
0.07
4.70%
HK:3318
China Boton Group Co., Ltd.
1.87
-0.26
-12.21%

Huabao International Holdings Corporate Events

Huabao International Expands Financial Product Investments
Jun 4, 2025

Huabao International Holdings Limited announced a further subscription to a financial product offered by China Zheshang Bank, with the total outstanding investment amounting to RMB525 million. This transaction has been classified as a discloseable transaction under Hong Kong’s Listing Rules due to the aggregate percentage ratio exceeding 5%, necessitating notification and announcement requirements. The company assures that the subscription will not adversely affect its financial position and anticipates reasonable interest gains.

Huabao International Holdings Updates Nomination Committee Terms
May 30, 2025

Huabao International Holdings Limited has revised the terms of reference for its Nomination Committee, which is tasked with establishing a director nomination system and improving succession planning. The committee’s responsibilities include formulating nomination policies, identifying and nominating candidates for board positions, and ensuring board diversity. This revision aims to enhance the company’s long-term development by focusing on board diversity and strategic alignment with corporate goals, potentially impacting the company’s governance and operational efficiency.

Huabao International Approves All AGM Resolutions, Reflecting Strong Shareholder Support
May 15, 2025

Huabao International Holdings Limited announced that all resolutions proposed at its Annual General Meeting held on May 15, 2025, were approved by shareholders. The resolutions included re-election of directors, approval of financial statements, declaration of a special dividend, and granting mandates to the board for share allotment and buyback. The successful passing of these resolutions reflects shareholder confidence in the company’s management and strategic direction, potentially impacting its operational and market positioning positively.

Huabao International Expands Financial Investments with Bank of Jiangsu
Apr 29, 2025

Huabao International Holdings Limited, a company incorporated in Bermuda, announced a further subscription of financial products from the Bank of Jiangsu, with the total outstanding investment amounting to RMB807 million. This transaction, which took place on April 29, 2025, constitutes a discloseable transaction under Hong Kong’s Listing Rules due to the percentage ratios involved. The company assures that the subscription will not adversely impact its financial position and expects reasonable interest returns.

Huabao International Expands Investment in Bank Financial Products
Apr 28, 2025

Huabao International Holdings Limited announced a further subscription to financial products from China Zheshang Bank and Bank of Jiangsu, with outstanding investments totaling RMB428 million and RMB417 million, respectively. This move, classified as a discloseable transaction under Hong Kong’s Listing Rules, suggests a strategic investment approach without adversely impacting the company’s financial position, potentially enhancing its market positioning.

Huabao Flavours Reports Decline in Q1 2025 Financials
Apr 25, 2025

Huabao International Holdings Limited announced the financial results for its subsidiary, Huabao Flavours & Fragrances Co., Ltd., for the first quarter of 2025. The report indicated a decline in revenue and net profit compared to the previous year, with a notable decrease in net cash flow from operating activities. These results may impact the company’s market positioning and stakeholder confidence as they reflect a challenging period for the subsidiary.

Huabao International Holdings Announces Annual General Meeting and Key Resolutions
Apr 16, 2025

Huabao International Holdings Limited has announced its upcoming annual general meeting scheduled for May 15, 2025, in Hong Kong. The meeting will address several key issues, including the consideration of audited financial statements, the declaration of a special dividend, the re-election of executive directors, and the re-appointment of auditors. Additionally, shareholders will vote on resolutions to authorize the board to issue additional shares and make related financial arrangements. These developments are significant for stakeholders as they indicate the company’s ongoing strategic initiatives and governance practices.

Huabao International Engages in Significant Transactions with Guangdong Tobacco
Apr 3, 2025

Huabao International Holdings has announced that its subsidiaries have received purchase orders from Guangdong Tobacco Company for tobacco raw materials, amounting to approximately RMB35,002,999. These transactions are considered connected transactions under Hong Kong’s Listing Rules, requiring specific reporting and disclosure obligations. The transactions exceed 1% of the applicable percentage ratio, necessitating compliance with Chapter 14A of the Listing Rules, although they are exempt from independent shareholders’ approval due to the percentage being less than 5%. The company will continue to monitor these transactions to ensure ongoing compliance.

Huabao International Engages in Significant Financial Product Subscription
Mar 31, 2025

Huabao International Holdings Limited announced that a member of its group has subscribed to financial products offered by the Industrial Bank, with an outstanding investment amount totaling RMB1,310 million. The company has confirmed that all other financial products acquired from the bank have been redeemed, and the subscription is expected to yield reasonable interest without adversely affecting the group’s financial position. The transaction is classified as a discloseable transaction under Hong Kong’s Listing Rules, requiring notification and announcement due to its size.

Huabao International Holdings Reports 2024 Financial Results with Revenue Growth but Profitability Challenges
Mar 28, 2025

Huabao International Holdings Limited has announced its audited annual results for the year ended December 31, 2024. The company reported a slight increase in revenue by 2.0% to RMB 3,373,265,000 compared to the previous year. However, the company experienced a significant downturn in profitability, with a gross profit decrease of 1.9% and an operating loss of RMB 401,946,000 compared to a profit in the previous year. The financial results reflect challenges in maintaining profit margins and highlight substantial impairments, including goodwill and financial assets, impacting the company’s financial health and stakeholder interests.

Huabao International Announces Special Dividend for 2024
Mar 28, 2025

Huabao International Holdings Limited has announced a special cash dividend of HKD 0.05 per share for the year ended December 31, 2024. The dividend will be paid on June 27, 2025, following shareholder approval on May 15, 2025, with an ex-dividend date of June 5, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

Huabao International Ends Subsidiary’s Share Incentive Scheme
Mar 28, 2025

Huabao International Holdings Limited has announced the termination of the share incentive scheme for its subsidiary, Huabao Flavours & Fragrances Co., Ltd., pending shareholder approval. This decision will result in accelerated vesting and an expected recognition of RMB70 million in share-based compensation expenses in 2025, although it will not affect the company’s share structure.

Huabao International Adjusts Investment Plan for Subsidiary Projects
Mar 28, 2025

Huabao International Holdings Limited has announced an adjustment in the investment plan for its subsidiary, Huabao Flavours & Fragrances Co., Ltd., regarding the use of proceeds from its 2018 IPO. The company has extended the timeline for the full utilization of funds for its Huabao Technology Innovation Center and Digital Transformation projects, with new completion dates set for 2029 and 2026, respectively. This adjustment reflects the company’s strategic focus on innovation and digital transformation, impacting its operational efficiency and market positioning.

Huabao Flavours Reports Significant Financial Decline for 2024
Mar 28, 2025

Huabao International Holdings Limited announced the financial results of its subsidiary, Huabao Flavours & Fragrances Co., Ltd., for the year ending December 31, 2024. The report highlights a significant decline in operating revenue and net profit attributable to shareholders, with a notable decrease of 178.19% in net profit compared to the previous year. This downturn in financial performance may impact the company’s market position and stakeholder confidence, as it reflects challenges in maintaining profitability and operational efficiency.

Huabao International Holdings Schedules Board Meeting for Financial Review
Mar 18, 2025

Huabao International Holdings Limited has announced a board meeting scheduled for March 28, 2025, to discuss and approve the audited final results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend, which could have implications for the company’s financial strategy and shareholder returns.

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.