Huabao International Holdings (0336) AI Stock Analysis

• Market Cap: HK$9.69B
• Dividend Yield: 4.69%
• Average Volume (3M): 9.50M
• Price to Earnings (P/E): 68.9
• Beta (1Y): 0.79
• Revenue Growth: 0.17%
• EPS Growth: -260.67%
• Country: HK
• Employees: 4,065
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): -0.13
• Shares Outstanding: 3,229,926,800
• 10 Day Avg. Volume: 5,984,205
• 30 Day Avg. Volume: 9,496,335
• PEG Ratio: -1.36
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.36
• 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: HK$2.98
• Price Target Upside: -0.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: HK$3.00 ▼(-0.33%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 Business Overview & Revenue Model

Company Description

Huabao 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 Money

Huabao 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.07B	3.37B	3.31B	3.83B	3.88B	3.85B
Gross Profit	1.31B	1.44B	1.47B	1.88B	2.30B	2.44B
EBITDA	955.99M	464.38M	758.37M	-352.00M	1.51B	1.37B
Net Income	480.29M	-385.51M	233.63M	-901.05M	675.13M	668.44M
Balance Sheet
Total Assets	18.03B	15.00B	16.00B	16.62B	18.03B	17.68B
Cash, Cash Equivalents and Short-Term Investments	6.89B	6.27B	6.43B	6.36B	6.89B	6.91B
Total Debt	1.00B	237.75M	500.17M	738.47M	1.00B	2.77B
Total Liabilities	2.31B	1.28B	1.73B	2.06B	2.31B	3.98B
Stockholders Equity	13.88B	12.08B	12.48B	12.65B	13.88B	11.87B
Cash Flow
Free Cash Flow	120.40M	380.94M	503.60M	307.95M	973.52M	1.28B
Operating Cash Flow	298.10M	679.70M	965.27M	798.75M	1.41B	1.46B
Investing Cash Flow	334.82M	1.01B	-2.60B	1.24B	-2.10B	1.18B
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 Price: 3.01
• 50DMA: Positive
• 100DMA: Positive
• 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:0336, the sentiment is Positive. The current price of 3.01 is above the 20-day moving average (MA) of 2.98, above the 50-day MA of 2.87, and above the 200-day MA of 2.41, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 54.26 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0546	76 Outperform	€17.10B	6.85	12.81%	9.38%	-2.74%	-27.33%
0408	74 Outperform	$939.73M	9.74	2.51%	13.17%	-1.70%	12.53%
Sector *	59 Neutral	HK$16.45B	4.63	-5.52%	4.85%	-3.57%	-61.41%
1986	54 Neutral	HK$830.93M	55.38	-1.16%	6.35%	2.49%	-171.78%
0336	54 Neutral	HK$9.69B	68.85	-3.15%	4.69%	0.17%	-260.67%
3318	53 Neutral	HK$2.07B	103.26	0.59%	―	-21.05%	-87.68%
1440	52 Neutral	HK$10.24B	―	-4.12%	―	83.59%	-23.60%

Huabao International Holdings Corporate Events

Huabao International Expands Investment in Financial Products

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

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

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

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

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

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

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

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.