Xinyang Maojian Group (0362) AI Stock Analysis

• Market Cap: HK$20.27M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: -15.02%
• EPS Growth: 88.05%
• Country: HK
• Employees: 115
• Sector: Utilities
• Sector Strength: 63
• Industry: Regulated Electric
• EPS (TTM): -0.05
• Shares Outstanding: 1,351,548,200
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 16 Underperform
• Price Target: ―

Xinyang Maojian Group's overall stock score is heavily impacted by severe financial struggles, including significant losses and high leverage. Technical indicators suggest a strong downtrend with oversold conditions, but the valuation remains unattractive due to negative profitability metrics. The absence of earnings call insights or corporate events leaves no additional positives to mitigate the risks.

Positive Factors

Market Position

The company's specialization in Xinyang Maojian tea, a renowned variety, positions it well in the niche market for high-quality tea, potentially attracting loyal consumers and differentiating it from competitors.

Distribution Network

An extensive supply chain and distribution network enable the company to effectively reach diverse customer segments, supporting market penetration and revenue potential over the long term.

Product Reputation

High-quality and reputable tea products can drive consumer trust and brand loyalty, potentially leading to sustained demand and competitive advantage in the market.

Negative Factors

Revenue Decline

A consistent decline in revenue indicates challenges in maintaining market share and competitiveness, which can impact long-term growth prospects and financial health.

High Leverage

High leverage and negative equity suggest financial distress, limiting the company's ability to invest in growth opportunities and increasing insolvency risk.

Negative Cash Flow

Negative cash flow trends indicate difficulties in generating cash from operations, which can hinder the company's ability to sustain operations and invest in future growth without external financing.

Xinyang Maojian Group Business Overview & Revenue Model

Company Description

China Zenith Chemical Group Limited, an investment holding company, generates and supplies heat and power in the People's Republic of China. It operates through three segments: Heat and Power, Calcium Carbide, and Construction Service. The company supplies heat for residential use; and produces and sells calcium carbide, vinyl acetate, and polyvinyl-chloride. It also engages in the construction and monitoring of public facilities; and provision of municipal engineering construction, and administrative and consultancy services. The company was formerly known as Xinyang Maojian Group Limited and changed its name to China Zenith Chemical Group Limited in April 2022. China Zenith Chemical Group Limited is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Xinyang Maojian Group generates revenue through the sale of its tea products, which include both loose leaf and packaged tea varieties. The company leverages its extensive supply chain and distribution network to reach a wide range of customers, from individual consumers to wholesalers and retailers. In addition to traditional sales channels, the company may also engage in partnerships with tea distributors and retailers to expand its market reach. The company's earnings are largely influenced by the quality and reputation of its tea products, as well as its ability to effectively market and distribute them in competitive markets.

Xinyang Maojian Group Financial Statement Overview

Summary

Xinyang Maojian Group is facing severe financial challenges characterized by declining revenues, consistent losses, high leverage, and negative cash flows. The company needs to address operational inefficiencies and restructure its debt to stabilize its financial position and improve profitability.

Income Statement

The company has experienced a significant decline in revenue over the years, with a sharp decrease in total revenue from 2019 to 2024. Gross profit margins have been negative or low, indicating operational inefficiencies. Net income has been consistently negative, showing significant losses. The EBIT and EBITDA margins are also negative, highlighting ongoing operational challenges and inability to cover operating expenses.

Balance Sheet

The company exhibits a high debt-to-equity ratio, with negative stockholders' equity, indicating potential financial distress and high leverage. The equity ratio is negative as well, which suggests insolvency risk. The company’s total liabilities have consistently exceeded total assets, raising concerns about long-term financial stability.

Cash Flow

Free cash flow has been negative, displaying a declining trend, which suggests challenges in generating cash from operations. Operating cash flow has been negative, indicating difficulties in covering operating expenses without external financing. Although there have been some financing cash inflows, they have not been sufficient to cover negative free cash flows and operating losses.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	31.56M	31.56M	100.85M	198.66M	229.02M	194.34M
Gross Profit	-8.51M	11.15M	-5.10M	32.48M	-25.57M	-61.06M
EBITDA	-41.97M	-39.20M	-9.27M	-34.71M	-162.54M	-175.57M
Net Income	-162.50M	-162.50M	-155.88M	-1.06B	-450.35M	-354.89M
Balance Sheet
Total Assets	478.10M	478.10M	666.63M	1.24B	2.07B	1.93B
Cash, Cash Equivalents and Short-Term Investments	30.76M	30.76M	3.01M	14.85M	47.34M	8.82M
Total Debt	1.17B	1.17B	1.17B	1.26B	1.26B	1.13B
Total Liabilities	1.49B	1.49B	1.61B	2.06B	1.98B	1.57B
Stockholders Equity	-1.01B	-1.01B	-955.36M	-873.17M	29.56M	302.56M
Cash Flow
Free Cash Flow	-8.02M	-8.02M	-20.77M	-69.92M	-76.85M	-16.58M
Operating Cash Flow	-5.25M	-5.25M	-12.76M	-26.69M	-58.09M	3.08M
Investing Cash Flow	642.00K	642.00K	-8.42M	-34.15M	-27.64M	-26.09M
Financing Cash Flow	32.44M	32.44M	9.59M	26.09M	126.99M	23.98M

Xinyang Maojian Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0362, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, above the 50-day MA of 0.02, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 11.12 is Positive, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0362.

Xinyang Maojian Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$17.40B	17.96	5.60%	3.67%	6.62%	11.55%
0362	16 Underperform	HK$20.27M	―		―	-15.02%	88.05%
CWPWF	―	$398.18M	2.05	6.80%	21.26%	―	―
DT7	―	€2.11B	9.21	9.98%	―	―	―
0090	58 Neutral	HK$738.35M	19.44	4.04%	0.87%	16.01%	-53.67%
1250	57 Neutral	HK$4.99B	17.08	1.94%	―	-12.43%	-15.14%
1671	49 Neutral	HK$139.13M	10.24	3.93%	1.72%	-1.46%	834.07%

Xinyang Maojian Group Corporate Events

China Zenith Chemical Group Faces Winding Up and Trading Suspension

China Zenith Chemical Group Limited has been ordered to be wound up by the High Court of Hong Kong, with the Official Receiver appointed as the Provisional Liquidator. Trading of the company’s shares remains suspended, and the company will continue to update the public with further announcements as necessary.

Sheung Moon Holdings Faces Liquidation and Trading Suspension

Sheung Moon Holdings Limited, a company incorporated in the Cayman Islands, is undergoing liquidation as ordered by the High Court of Hong Kong. The Official Receiver has been appointed as the Provisional Liquidator, and trading of the company’s shares remains suspended since July 2024. This development indicates significant financial distress for the company, impacting its operations and stakeholders. The company advises shareholders to seek professional advice regarding the implications of the winding-up order and trading suspension.