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Huabao International Holdings Limited (HK:0336)
:0336

Huabao International Holdings (0336) AI Stock Analysis

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HK:0336

Huabao International Holdings

(0336)

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Neutral 55 (OpenAI - 5.2)
Rating:55Neutral
Price Target:
HK$5.00
▲(13.64% Upside)
The overall stock score is primarily influenced by the mixed financial performance, with strong balance sheet stability offset by declining revenues and cash flow issues. Technical analysis shows positive momentum, but overbought conditions could lead to a pullback. Valuation is weak due to negative earnings, despite a reasonable dividend yield.
Positive Factors
Strong balance sheet / low leverage
Very low financial leverage and a high equity ratio provide durable financial flexibility, enabling the company to withstand cyclical downturns in end markets, fund strategic initiatives or acquisitions without heavy reliance on debt, and support long-term R&D and capex needs.
Diversified B2B end-market exposure
A business model selling flavors, fragrances and ingredients across tobacco, food & beverage, and daily consumer products creates multiple stable revenue channels. B2B customer relationships and customized formulations drive repeat demand and reduce dependence on any single sector long term.
Upstream / vertical integration exposure
Investments in upstream aroma-chemical assets and adjacent businesses can secure raw-material supply, improve cost control and margin resilience, and create proprietary inputs. This vertical integration supports long-term competitiveness and reduces exposure to external input shocks.
Negative Factors
Declining revenue trend
A multi-year revenue decline erodes scale economics and weakens the company's ability to absorb fixed costs and invest in growth. Sustained top-line contraction threatens market position, reduces bargaining power with customers, and limits resources for product development and global expansion.
Weak and declining cash generation
Persistently falling free cash flow and zero operating cash flow in 2024 curtail the firm's capacity to self-fund capex, R&D, or dividends. Even with low leverage, continued weak cash generation increases reliance on external funding and limits strategic flexibility over the medium term.
Profitability deterioration / net loss
Recording a net loss and a deeply negative margin undermines retained earnings and hampers reinvestment. Persistent unprofitability weakens the balance sheet over time, reduces capacity for innovation and pricing investments, and makes sustaining dividends or expansion riskier.

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

Huabao International Holdings Business Overview & Revenue Model

Company DescriptionHuabao International Holdings Limited, an investment holding company, researches, develops, produces, distributes, and sells flavours and fragrances, aroma and tobacco raw materials, and condiment products primarily in the People's Republic of China. The company operates through four segments: Flavours and Fragrances, Tobacco Raw Materials, Aroma Raw Materials, and Condiment. It offers paper-making reconstituted tobacco leaves and new materials products for the tobacco industry. The company is also involved in the production and sale of natural extracts; tobacco flavours and fragrances; filter materials; synthetic perfumes; and food flavours and fragrances. Huabao International Holdings Limited was founded in 1996 and is headquartered in Wan Chai, Hong Kong.
How the Company Makes MoneyHuabao International generates revenue primarily through the sale of its tobacco products and flavoring solutions. The company’s key revenue streams include the sale of cigarette paper to tobacco manufacturers and the provision of custom flavoring solutions to food and beverage companies. In addition to its core products, Huabao benefits from strategic partnerships with major tobacco firms, which ensure a steady demand for its products. Furthermore, the company invests in research and development to innovate and expand its product offerings, catering to changing consumer preferences and regulatory landscapes, which contributes to its overall earnings.

Huabao International Holdings Financial Statement Overview

Summary
Huabao International Holdings shows a mixed financial picture. The balance sheet is strong with low leverage, but declining revenues and profitability issues are concerning. The absence of positive cash flows in 2024 raises liquidity concerns.
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 Revenue3.41B3.37B3.31B3.83B3.88B3.85B
Gross Profit1.44B1.44B1.47B1.88B2.30B2.44B
EBITDA400.23M464.38M758.37M-352.00M1.51B1.37B
Net Income-297.09M-385.51M233.63M-1.05B675.13M418.40M
Balance Sheet
Total Assets14.80B15.00B16.00B16.62B18.03B17.68B
Cash, Cash Equivalents and Short-Term Investments5.97B6.27B6.43B6.44B6.89B6.91B
Total Debt191.59M237.75M500.17M738.47M1.00B2.77B
Total Liabilities1.06B1.28B1.73B2.06B2.31B3.98B
Stockholders Equity12.08B12.08B12.48B12.65B13.88B11.87B
Cash Flow
Free Cash Flow422.74M380.94M503.60M307.95M973.52M1.28B
Operating Cash Flow566.20M679.70M965.27M798.75M1.41B1.46B
Investing Cash Flow969.24M1.01B-2.60B1.24B-2.10B1.18B
Financing Cash Flow-201.77M-646.39M-674.20M-997.63M-672.72M-1.03B

Huabao International Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.40
Price Trends
50DMA
4.09
Positive
100DMA
3.98
Positive
200DMA
3.54
Positive
Market Momentum
MACD
0.18
Negative
RSI
56.52
Neutral
STOCH
75.72
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 4.4 is below the 20-day moving average (MA) of 4.42, above the 50-day MA of 4.09, and above the 200-day MA of 3.54, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 56.52 is Neutral, neither overbought nor oversold. The STOCH value of 75.72 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
HK$1.09B8.393.36%7.85%-5.37%25.20%
65
Neutral
HK$21.21B6.4317.00%5.31%1.77%16.24%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
56
Neutral
HK$915.80M-29.90-1.52%5.55%0.37%-331.54%
55
Neutral
HK$16.47B-45.91-2.45%3.48%1.52%-373.77%
49
Neutral
HK$1.94B-51.32-1.08%-23.46%-126.64%
49
Neutral
HK$9.54B-268.03-11.48%10.08%-525.53%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0336
Huabao International Holdings
4.60
2.58
127.72%
HK:0408
Yip's Chemical Holdings
1.91
0.59
44.37%
HK:3318
China Boton Group Co., Ltd.
1.75
0.23
15.13%
HK:0546
Fufeng Group Limited
8.46
3.54
71.88%
HK:1440
Deyun Holding Ltd.
7.88
2.69
51.83%
HK:1986
Tsaker New Energy Tech Co., Limited
0.90
0.12
15.38%

Huabao International Holdings Corporate Events

Huabao Extends Connected Tobacco Materials Supply Deal With Broad Far to 2028
Jan 30, 2026

Huabao International Holdings has renewed and extended its business relationship with Broad Far Group via a new three-year framework agreement under which Chemactive and its subsidiaries will continue to supply tobacco-related raw materials and related services to Broad Far Group from 1 January 2026 to 31 December 2028, supporting the group’s strategy to expand its tobacco-related customer base and product applications beyond mainland China and bolster revenue. Because Broad Far is ultimately controlled by Madam Chu, an associate of a connected person under Hong Kong’s Listing Rules, the transactions are classified as continuing connected transactions; the applicable percentage ratios exceed 0.1% but remain below 5%, subjecting the deal to reporting, announcement and annual review requirements while exempting it from independent shareholders’ approval.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$5.00 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao Unveils HK$500 Million Share Buyback Plan
Jan 28, 2026

Huabao International plans to deploy up to HK$500 million over the next 12 months for phased on-market share repurchases within its existing mandate, canceling or holding bought shares as treasury stock to optimize capital structure. Management says the program signals confidence in long-term prospects, uses surplus cash efficiently, and will be funded from reserves while adhering to all regulatory requirements, though execution remains subject to market conditions and board discretion.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao Subsidiary Huabao Flavours Swings Back to Profit in 2025 on Stabilised Operations
Jan 28, 2026

Huabao International Holdings has informed investors that its Shenzhen-listed subsidiary, Huabao Flavours & Fragrances Co., Ltd., expects to post a turnaround to profit for the year ended 31 December 2025, with preliminary net profit attributable to shareholders forecast between RMB65 million and RMB95 million, compared with a net loss of about RMB296 million a year earlier. The improvement follows the absence in 2025 of the substantial goodwill impairment on edible tobacco flavours that weighed on 2024 results, alongside stable overall operations, orderly progress in core businesses and ongoing enhancements in internal management; the figures, prepared under China Accounting Standards, are unaudited but have been preliminarily discussed with the annual audit firm with no major disagreements reported, signalling a potential recovery in the subsidiary’s financial health and easing concerns over further goodwill impairment risk as of year-end 2025.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao Flags Narrower 2025 Loss but Books Heavy Goodwill Impairment on Condiment Unit
Jan 28, 2026

Huabao International Holdings has warned that it expects to report a reduced loss before tax of between RMB263 million and RMB343 million for the year ended 31 December 2025, an improvement of about 15% to 35% from the RMB402 million loss a year earlier. The result will remain in negative territory largely due to non-cash share-based compensation expenses of roughly RMB98 million and a sizeable goodwill impairment of RMB470 million to RMB530 million on its Jiahao Food condiment unit, reflecting weaker-than-expected performance amid continued softness in China’s catering industry. The company stressed that these non-cash charges do not affect cash flow and noted that its annual impairment and fair value assessments are still underway, with final audited results due by end-March 2026, while advising shareholders and potential investors to exercise caution when trading its shares.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao International Raises RMB1.2 Billion Exposure to Bank of Jiangsu Structured Deposits
Jan 23, 2026

Huabao International Holdings has disclosed that its subsidiaries have further subscribed to capital-protected structured deposit products offered by Bank of Jiangsu, bringing the group’s aggregate outstanding investment in these products to RMB1.2 billion as of 23 January 2026. The deposits, totaling RMB1.11 billion across three agreements signed in August and September 2025, carry an approximate annual return of 1.28% to 2.06% and mature in March 2026, with the board stating that all previous products from the bank have been fully redeemed, that reasonable interest income is expected, and that the current subscriptions will not adversely affect the group’s financial position; the size of the investment triggers discloseable transaction requirements under Hong Kong listing rules, underscoring Huabao’s continued use of low-risk bank structured products as a means of yield enhancement for its surplus funds.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao International Names Xia Liqun as CEO in Planned 2026 Leadership Transition
Jan 7, 2026

Huabao International Holdings has announced a leadership reshuffle, with long-serving executive Ms. Chu Lam Yiu stepping down as chief executive officer effective 7 January 2026 while retaining her roles as executive director, chairlady of the board and chairlady of the nomination committee. The board has appointed Mr. Xia Liqun, currently vice chairman, president and chairman of key subsidiaries, as the new CEO from the same date, formalising his expanded leadership role with a remuneration package tied to performance indicators. The company stressed that Ms. Chu has no disagreements with the board and that no other matters need to be drawn to shareholders’ attention, signalling a planned and orderly transition that consolidates operational control under Mr. Xia while maintaining continuity in board-level oversight and strategic direction.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao International Clarifies Board Composition and Committee Roles
Jan 7, 2026

Huabao International Holdings Limited, incorporated in Bermuda and listed in Hong Kong (stock code 00336), has outlined the composition and roles of its board of directors, which includes executive and independent non-executive members overseeing the company’s governance structure. The company has also detailed the membership of its three key board committees—Audit, Remuneration and Nomination—highlighting the leadership roles of Chairlady Chu Lam Yiu and independent director Lee Luk Shiu, a move that underscores its focus on corporate governance transparency and delineation of oversight responsibilities for investors and other stakeholders.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao International Adjusts Share Incentive Scheme Pricing
Nov 28, 2025

Huabao International Holdings Limited announced an adjustment to the purchase price of restricted shares under its Share Incentive Scheme. The price has been revised from RMB9.62 to RMB9.57 per share following the completion of a recent equity distribution plan. This adjustment aligns with the company’s compliance obligations under the Administrative Measures for Equity Incentives of Listed Companies and is not expected to significantly impact Huabao Flavours’ financial position or operating results.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao International Implements Share Incentive Scheme to Strengthen Market Position
Nov 28, 2025

Huabao International Holdings Limited announced the implementation of an Initial Grant under its Share Incentive Scheme, involving the allocation of 18,100,000 Restricted Shares to 135 key personnel, including directors and senior management of its subsidiary, Huabao Flavours & Fragrances Co., Ltd. This strategic move aims to incentivize and retain essential staff, potentially strengthening the company’s operational capabilities and competitive positioning in the flavors and fragrances market.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao International’s Share Incentive Scheme Approved by Shareholders
Nov 28, 2025

Huabao International Holdings Limited announced that a resolution regarding the share incentive scheme for Huabao Flavours & Fragrances Co., Ltd. was approved by shareholders at a special general meeting held on November 28, 2025. The resolution received overwhelming support, with 99.38% of votes in favor, indicating strong shareholder confidence in the company’s strategic direction. This approval allows the company to implement the incentive scheme, which could enhance employee motivation and align their interests with company goals, potentially impacting the company’s operational efficiency and market positioning positively.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao International Announces Special General Meeting for Share Incentive Scheme
Nov 7, 2025

Huabao International Holdings Limited has announced a special general meeting to be held on November 28, 2025, in Hong Kong. The meeting will focus on approving and adopting the proposed share incentive scheme for Huabao Flavours & Fragrances Co., Ltd. This initiative is expected to enhance the company’s operational strategies and potentially improve its market positioning by aligning the interests of its stakeholders.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao International Adopts New Share Incentive Scheme to Drive Growth
Nov 4, 2025

Huabao International Holdings Limited has announced the adoption of a 2025 Restricted Share Incentive Scheme by its principal subsidiary, Huabao Flavours & Fragrances Co., Ltd. This scheme aims to enhance the company’s long-term incentive mechanisms, attract and retain key talent, and align the interests of shareholders and core team members for sustainable growth. The scheme has been approved by the boards of both Huabao Flavours and the parent company, with further approval required from shareholders at a special general meeting. This initiative is expected to support Huabao Flavours’ long-term development and contribute to the overall growth of the group.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

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: Dec 05, 2025