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China Huajun Group Limited (HK:0377)
:0377
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China Huajun Group Limited (0377) AI Stock Analysis

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HK:0377

China Huajun Group Limited

(0377)

Rating:48Neutral
Price Target:
HK$1.00
▼(-38.27% Downside)
China Huajun Group Limited faces significant financial challenges, with a heavily negative financial performance being the most significant factor. Technical analysis shows some short-term bullish momentum, but this is tempered by overbought signals. Valuation is unattractive due to negative earnings and lack of dividend yield, impacting the stock's overall appeal.

China Huajun Group Limited (0377) vs. iShares MSCI Hong Kong ETF (EWH)

China Huajun Group Limited Business Overview & Revenue Model

Company DescriptionChina Huajun Group Limited, an investment holding company, manufactures and sells multi-color packaging products, carton boxes, books, brochures, and other paper products in the People's Republic of China, the United States, Hong Kong, European countries, and internationally. It operates through five segments: Printing, Trading and Logistics, Property Development and Investments, Solar Photovoltaic, and Financial Services. The company also offers logistics and supply chain management services; finance leasing and money lending services; marketing, cargo freight, and management services; and securities brokerage, asset management, and other related services, as well as invests in equity securities, funds, and bonds. In addition, it trades in petrochemical, rubber, and paper products. Further, the company develops, invests, and manages real estate properties; and manufactures and sells solar control equipment, monocrystalline silicon wafers, solar stent, polycrystalline silicones, solar cells, coated glasses, rare metals, solar modules, silicon materials, and related products. Additionally, it manufactures and sells hydraulic machinery, solar photovoltaic products, and surgical masks. The company was formerly known as Huajun International Group Limited and changed its name to China Huajun Group Limited in October 2020. The company was incorporated in 1968 and is based in Wanchai, Hong Kong. China Huajun Group Limited is a subsidiary of Huajun Group Limited.
How the Company Makes MoneyChina Huajun Group Limited generates revenue through several key streams. Primarily, the company earns money from its property development and investment activities, where it develops real estate projects and earns rental income from its investment properties. Additionally, the company is involved in the trading of goods, which includes the distribution and sales of consumer products. Another significant revenue stream comes from the company's involvement in the entertainment and media sector, where it produces and distributes various media content. The company's earnings are bolstered by strategic partnerships and alliances that enhance its market presence and operational efficiency.

China Huajun Group Limited Financial Statement Overview

Summary
China Huajun Group Limited faces significant financial challenges across all statements. The income statement reveals ongoing losses and declining revenues, the balance sheet shows severe leverage concerns with a negative equity position, and while cash flow generation is positive, it is insufficient to offset the company's broader financial difficulties.
Income Statement
22
Negative
The company has faced significant challenges in its income statement metrics. Gross profit margin has been on a declining trend, reaching a low 1.21% in 2024. Net profit margin also remains deeply negative, indicating ongoing losses. Revenue has decreased dramatically from 2023 to 2024 by 59.41%, further impacting financial stability. Such trends reflect operational inefficiencies and market challenges in the specialty chemicals sector.
Balance Sheet
15
Very Negative
The balance sheet reveals concerning leverage levels, with a negative stockholders' equity indicating insolvency risks. The debt-to-equity ratio is not meaningful due to negative equity, while the equity ratio also highlights the company's reliance on debt financing. These factors signal financial instability and a potential risk for investors.
Cash Flow
30
Negative
Despite generating positive operating cash flow of $93.57 million in 2024, the company's free cash flow has drastically decreased from the prior year. The cash flow metrics reflect some ability to generate cash, yet this is overshadowed by the overall negative financial performance and high debt levels, suggesting limited capacity for sustainable growth.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.15B2.84B1.64B3.51B3.52B
Gross Profit13.99M92.37M-344.72M74.10M40.93M
EBITDA-626.25M-1.73B-1.39B-632.84M-439.15M
Net Income-1.26B-2.68B-2.83B-1.78B-1.63B
Balance Sheet
Total Assets4.83B5.64B11.11B15.74B16.99B
Cash, Cash Equivalents and Short-Term Investments36.81M66.15M68.39M164.94M229.62M
Total Debt5.02B5.08B6.82B11.11B11.12B
Total Liabilities12.42B11.95B14.77B16.58B15.88B
Stockholders Equity-7.62B-6.35B-3.70B-850.62M1.10B
Cash Flow
Free Cash Flow90.48M686.56M-53.24M14.40M-641.08M
Operating Cash Flow93.57M689.21M-42.48M453.89M-329.37M
Investing Cash Flow-2.19M1.19B92.14M-357.34M258.15M
Financing Cash Flow-119.89M-1.87B-115.99M-158.42M22.17M

China Huajun Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.62
Price Trends
50DMA
1.14
Positive
100DMA
1.01
Positive
200DMA
0.91
Positive
Market Momentum
MACD
0.11
Negative
RSI
83.47
Negative
STOCH
86.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0377, the sentiment is Positive. The current price of 1.62 is above the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.14, and above the 200-day MA of 0.91, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 83.47 is Negative, neither overbought nor oversold. The STOCH value of 86.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0377.

China Huajun Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$10.31B6.290.76%2.95%3.36%-36.41%
56
Neutral
HK$118.14M-1.32%12.01%82.32%
48
Neutral
HK$86.16M
-60.57%53.71%
€15.66M-2.05%
64
Neutral
HK$194.40M5.464.78%-2.38%-54.44%
46
Neutral
HK$103.35M-323.57%-70.04%-345.32%
43
Neutral
HK$146.00M-11.66%-31.49%28.61%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0377
China Huajun Group Limited
1.62
0.77
90.59%
HK:1047
Ngai Hing Hong Co. Ltd.
0.36
0.03
9.09%
DE:BME
Beijing Media Corp. Ltd. Class H
0.06
0.03
100.00%
HK:1561
Pan Asia Data Holdings, Inc.
0.10
-0.05
-33.33%
HK:1932
CPM Group Ltd.
0.15
-0.09
-37.50%
HK:1950
Diwang Industrial Holdings Limited
0.25
0.15
150.00%

China Huajun Group Limited Corporate Events

China Huajun Group Limited Announces New Share Subscription and Resolves Public Float Issue
Jul 17, 2025

China Huajun Group Limited announced a subscription of new shares under a general mandate, expected to generate net proceeds of approximately HK$11.9 million. These funds will be allocated towards settling consent fees, general working capital, and cash repayment obligations. The announcement also addressed an issue of insufficient public float due to an increase in shareholding by Ouke Group Holdings Limited, which had previously made Ouke a core connected person of the company. However, following the completion of the share subscription, Ouke’s shareholding will decrease, resolving the public float issue and reclassifying Ouke’s shares as public.

China Huajun Group Limited Announces Unanimous Approval of AGM Resolutions
Jun 27, 2025

China Huajun Group Limited announced that all resolutions proposed at their Annual General Meeting held on June 27, 2025, were passed unanimously. These resolutions included the adoption of financial statements for the year ended December 31, 2024, re-election and election of directors, authorization for directors to fix remuneration, re-appointment of auditors, and granting of mandates to directors for share allotment and repurchase. The unanimous approval of these resolutions reflects strong shareholder support and positions the company for continued governance and operational stability.

China Huajun Group Limited Announces Board Composition and Roles
Jun 27, 2025

China Huajun Group Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. The board includes both executive and independent non-executive directors, with specific members assigned to the audit, nomination, and remuneration committees. This announcement provides clarity on the governance structure of the company, which is crucial for transparency and effective management, potentially impacting stakeholder confidence and the company’s strategic direction.

China Huajun Group Limited Completes Restructuring
Jun 26, 2025

China Huajun Group Limited announced that all conditions for its restructuring have been met, and the restructuring became effective on June 26, 2025. The company expressed gratitude to its creditors and advisors for their support during the process and will provide further updates on the distribution of the scheme consideration and other related matters.

China Huajun Group Announces New Share Subscription to Raise HK$12 Million
Jun 23, 2025

China Huajun Group Limited, incorporated in Bermuda, announced a subscription agreement for the issuance of 12,000,000 new shares at a price of HK$1 per share. This move is expected to raise approximately HK$12.0 million in gross proceeds, with net proceeds of about HK$11.9 million intended for debt repayment and general working capital. The subscription represents a significant portion of the company’s share capital, potentially impacting its financial structure and market positioning.

China Huajun Group Updates AGM Agenda with New Director Elections
Jun 4, 2025

China Huajun Group Limited, a company incorporated in Bermuda, has announced a supplemental notice regarding its upcoming Annual General Meeting (AGM) scheduled for June 27, 2025, in Hong Kong. The notice includes amendments to the resolutions to be considered at the AGM, specifically the re-election and election of several directors and the authorization for the board to fix directors’ remuneration. These changes are outlined in a supplemental circular dated June 5, 2025, and are intended to update shareholders on the revised agenda for the meeting.

China Huajun Group Announces Board Restructuring
Jun 3, 2025

China Huajun Group Limited has announced significant changes in its board of directors, with the retirement of Mr. Shen Ruolei from his position as an independent non-executive director, and the proposed appointment of Dr. Li Dayi, Ms. Wang Xiaomei, and Ms. Zhu Fang to the board. These changes, subject to shareholder approval at the upcoming AGM, will also affect the composition of the company’s board committees, with Ms. Zhu set to take on roles in the Nomination, Remuneration, and Audit Committees. The appointments aim to bring fresh perspectives and expertise to the company’s leadership, potentially impacting its strategic direction and governance.

China Huajun Group’s Winding-Up Petition Dismissed by High Court
May 26, 2025

China Huajun Group Limited, a company listed on the Hong Kong Stock Exchange, announced that the High Court has dismissed the winding-up petition against it. However, the Scheme of Arrangement has not yet become effective as it awaits the fulfillment of necessary requirements. The company advises shareholders and potential investors to exercise caution when dealing in its securities.

China Huajun Group Limited Issues Supplemental Announcement on 2024 Annual Report
May 12, 2025

China Huajun Group Limited has released a supplemental announcement regarding its 2024 Annual Report. The company has disclosed that its Audit Committee agrees with the Disclaimer of Opinion expressed by its auditor. The committee also supports the management’s decision to prepare the consolidated financial statements on a going concern basis, considering the facts and assumptions detailed in the report.

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 11, 2025