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Huabao International Holdings (HK:0336)
:0336
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Huabao International Holdings (0336) AI Stock Analysis

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HK:0336

Huabao International Holdings

(OTC:0336)

Rating:54Neutral
Price Target:
HK$3.50
▲(2.64% Upside)
The overall stock score is primarily influenced by the mixed financial performance, where stability in the balance sheet is overshadowed by declining revenue and cash flow issues. Despite bullish technical signals, the overbought status suggests caution. Valuation concerns with a negative P/E ratio and limited dividend yield further weigh down the score.

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 manufacturing and distribution of flavors and fragrances. These products are essential components used in various consumer goods industries including food, beverages, personal care, and household products. The company operates across multiple sectors, focusing on providing innovative and high-quality flavor and fragrance solutions to enhance consumer experiences.
How the Company Makes MoneyHuabao International Holdings generates revenue through the development, production, and sale of flavors and fragrances. The company's key revenue streams include the sale of customized flavor and fragrance compounds to manufacturers in the food, beverage, personal care, and household product industries. By leveraging its expertise in research and development, Huabao creates unique and proprietary formulas that cater to the specific needs of their clients. Additionally, strategic partnerships with leading consumer goods companies and consistent investment in cutting-edge technology contribute to its earnings. The company's ability to innovate and adapt to changing market trends ensures a steady demand for its products, thereby sustaining its revenue growth.

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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.07B3.37B3.31B3.83B3.88B3.85B
Gross Profit1.31B1.44B1.47B1.88B2.30B2.44B
EBITDA955.99M464.38M758.37M-352.00M1.51B1.37B
Net Income480.29M-385.51M233.63M-901.05M675.13M668.44M
Balance Sheet
Total Assets18.03B15.00B16.00B16.62B18.03B17.68B
Cash, Cash Equivalents and Short-Term Investments6.89B6.27B6.43B6.36B6.89B6.91B
Total Debt1.00B237.75M500.17M738.47M1.00B2.77B
Total Liabilities2.31B1.28B1.73B2.06B2.31B3.98B
Stockholders Equity13.88B12.08B12.48B12.65B13.88B11.87B
Cash Flow
Free Cash Flow120.40M380.94M503.60M307.95M973.52M1.28B
Operating Cash Flow298.10M679.70M965.27M798.75M1.41B1.46B
Investing Cash Flow334.82M1.01B-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 Price3.41
Price Trends
50DMA
3.14
Positive
100DMA
2.79
Positive
200DMA
2.48
Positive
Market Momentum
MACD
0.12
Positive
RSI
52.93
Neutral
STOCH
10.42
Positive
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 3.41 is above the 20-day moving average (MA) of 3.35, above the 50-day MA of 3.14, and above the 200-day MA of 2.48, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 10.42 is Positive, 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
€22.99B9.2112.81%3.06%-2.74%-27.33%
74
Outperform
HK$979.12M10.152.51%8.33%-1.70%12.53%
58
Neutral
HK$16.63B4.29-4.93%4.55%-5.74%-81.55%
56
Neutral
HK$12.56B-4.12%83.59%-23.60%
54
Neutral
HK$11.01B68.85-3.15%2.28%0.17%-260.67%
53
Neutral
HK$2.23B111.960.59%-21.05%-87.68%
49
Neutral
HK$771.20M55.38-1.16%7.63%2.49%-171.78%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0336
Huabao International Holdings
3.41
1.27
59.20%
HK:1986
Tsaker New Energy Tech Co., Limited
0.80
0.01
1.27%
HK:1440
Deyun Holding Ltd.
9.97
6.33
173.90%
HK:0546
Fufeng Group Limited
9.17
5.10
125.20%
HK:0408
Yip's Chemical Holdings
1.74
0.41
31.22%
HK:3318
China Boton Group Co., Ltd.
2.06
0.34
19.77%

Huabao International Holdings Corporate Events

Huabao International Expands Financial Investments with China Zheshang Bank
Jul 29, 2025

Huabao International Holdings Limited, a company incorporated in Bermuda, has announced a further subscription of financial products from China Zheshang Bank, with the aggregate outstanding investment amount reaching RMB615 million. This subscription, which took place on July 29, 2025, is considered a discloseable transaction under Hong Kong’s Listing Rules due to its size, requiring notification and announcement. The company assures that the investment will not adversely affect its financial position and expects reasonable interest returns.

Huabao International Reports Significant Profit Growth for First Half of 2025
Jul 18, 2025

Huabao International Holdings Limited announced a significant increase in its unaudited profit before tax for the first half of 2025, with figures expected to be between RMB151.2 million and RMB177.2 million, marking a rise of 91.3% to 124.3% compared to the same period in 2024. This improvement is attributed to the absence of impairment losses that impacted the previous year’s results. The company also reported Non-HKFRS Measures of profit before tax, showing a modest increase of 1.1% to 12.9% after excluding certain non-cash items. Huabao is conducting further assessments on asset impairments and financial asset valuations, with interim results expected by the end of August 2025.

Huabao International Expands Investment in Financial Products
Jul 8, 2025

Huabao International Holdings Limited, a company incorporated in Bermuda, has announced a further subscription of financial products from China Zheshang Bank, amounting to RMB565 million. This transaction, which occurred on July 8, 2025, is classified as a discloseable transaction under Hong Kong’s Listing Rules, necessitating notification and announcement due to its financial significance. The company assures that this investment will not adversely impact its financial position and expects reasonable interest returns.

Huabao International Expands Investment in Financial Products
Jun 30, 2025

Huabao International Holdings Limited, a company listed on the Hong Kong Stock Exchange, has announced a further subscription of financial products from China Zheshang Bank, amounting to RMB575 million. This transaction, which took place on June 30, 2025, is considered a discloseable transaction under the Hong Kong Stock Exchange’s Listing Rules, as it exceeds 5% but is below 25% of the applicable percentage ratios. The company assures that this investment will not adversely impact its financial position and expects reasonable interest gains.

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.

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: Jul 22, 2025