China Huajun Group Limited (0377) AI Stock Analysis

• Market Cap: HK$74.47M
• Dividend Yield: N/A
• Average Volume (3M): 1.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -15.10%
• EPS Growth: 31.07%
• Country: HK
• Employees: 1,367
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -6.70
• Shares Outstanding: 61,543,076
• 10 Day Avg. Volume: 1,648
• 30 Day Avg. Volume: 1,620
• PEG Ratio: <0.01
• Price to Book (P/B): >-0.01
• Price to Sales (P/S): 0.04
• P/FCF Ratio: 0.51
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$1.00 ▼(-17.36% Downside)

The overall stock score of 48 reflects significant financial challenges, including persistent losses and high leverage, which are major concerns. While technical indicators show some positive momentum, the valuation remains unattractive due to negative earnings and lack of dividends. The absence of earnings call data and notable corporate events limits further insights.

Positive Factors

Market Diversification

Diversification across multiple sectors helps mitigate risks associated with reliance on a single market, providing stability and growth opportunities.

Revenue Streams

Multiple revenue streams enhance financial resilience and provide flexibility to adapt to market changes, supporting long-term growth.

Commitment to Innovation

A focus on innovation and quality can drive product differentiation and competitive advantage, fostering sustainable growth.

Negative Factors

High Leverage

High leverage increases financial risk and limits the company's ability to invest in growth opportunities, impacting long-term stability.

Negative Cash Flow

Negative cash flows indicate operational inefficiencies and constrain the company's ability to fund operations and growth initiatives.

Persistent Losses

Ongoing losses and negative margins reflect operational challenges and threaten long-term viability unless addressed.

China Huajun Group Limited Business Overview & Revenue Model

Company Description

China 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 Money

China Huajun Group Limited generates revenue through multiple streams, including the sale of electronic components and machinery to businesses and consumers. The company capitalizes on its manufacturing capabilities by producing a variety of products that cater to different markets. Key revenue streams include direct sales, export activities, and potential partnerships with other manufacturers and distributors for joint ventures or supply agreements. Additionally, the company's strategic initiatives to enhance product quality and expand into new markets contribute significantly to its earnings and overall financial performance.

China Huajun Group Limited Financial Statement Overview

Summary

China Huajun Group Limited faces significant financial challenges across all verticals. The income statement shows persistent losses and negative margins, while the balance sheet is burdened with high leverage and negative equity. Cash flow generation is weak, with negative operating and free cash flows. The company needs to address its operational inefficiencies and financial structure to improve its financial health and stability.

Income Statement

The income statement reveals significant challenges for China Huajun Group Limited. The company has consistently reported negative net profit margins, with the TTM showing a net profit margin of -109.39%. Revenue growth is positive at 3.03% TTM, but the gross profit margin remains low at 1.21%. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies. Overall, the company struggles with profitability and operational performance.

Balance Sheet

The balance sheet presents a concerning picture with negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is negative, reflecting the company's high leverage and financial risk. Return on equity is positive but misleading due to negative equity. The equity ratio is also negative, highlighting the company's reliance on debt financing. Overall, the balance sheet suggests significant financial distress and high leverage.

Cash Flow

The cash flow statement shows a challenging situation with negative operating and free cash flows in the TTM. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is low, indicating cash flow issues. The free cash flow to net income ratio is close to 1, suggesting that cash flows are not sufficient to cover net losses. Overall, the cash flow position is weak, with limited cash generation capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.23B	1.15B	2.84B	1.64B	3.51B	3.52B
Gross Profit	12.52M	13.99M	92.37M	-344.72M	74.10M	40.93M
EBITDA	-124.54M	-626.25M	-1.73B	-1.39B	-632.84M	-370.04M
Net Income	-1.24B	-1.26B	-2.68B	-2.83B	-1.78B	-1.57B
Balance Sheet
Total Assets	4.72B	4.83B	5.64B	11.11B	15.74B	16.99B
Cash, Cash Equivalents and Short-Term Investments	49.47M	36.81M	66.15M	68.39M	164.94M	229.62M
Total Debt	5.21B	5.02B	5.08B	6.82B	11.11B	11.12B
Total Liabilities	12.69B	12.42B	11.95B	14.77B	16.58B	15.88B
Stockholders Equity	-8.09B	-7.62B	-6.35B	-3.70B	-850.62M	1.10B
Cash Flow
Free Cash Flow	-12.32M	90.48M	686.56M	-53.24M	14.40M	-641.08M
Operating Cash Flow	-9.97M	93.57M	689.21M	-42.48M	453.89M	-329.37M
Investing Cash Flow	7.89M	-2.19M	1.19B	92.14M	-357.34M	258.15M
Financing Cash Flow	-6.21M	-119.89M	-1.87B	-115.99M	-158.42M	22.17M

China Huajun Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.21 is below the 20-day moving average (MA) of 1.21, above the 50-day MA of 1.19, and above the 200-day MA of 1.05, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1950	60 Neutral	HK$123.12M	4.87	3.61%	―	-12.19%	108.93%
1047	54 Neutral	HK$142.14M	427.78	0.07%	―	5.65%	―
0377	48 Neutral	HK$74.47M	-0.06	―	―	-15.10%	31.07%
1932	48 Neutral	HK$150.00M	-2.42	-15.93%	―	-25.21%	12.04%
1000	43 Neutral	HK$108.52M	-7.89	-2.05%	―	-13.57%	34.43%
1561	39 Underperform	HK$76.71M	-1.19	―	―	-41.93%	76.10%

China Huajun Group Limited Corporate Events

China Huajun Group Extends Long Stop Date for Share Subscription

China Huajun Group Limited has announced a further extension of the long stop date related to the subscription of new shares under a general mandate. The completion of the subscription agreement is contingent upon the fulfillment of certain conditions, which has necessitated extending the deadline from October 31, 2025, to December 31, 2025. This extension allows additional time to meet the conditions, while all other terms of the agreement remain unchanged.

China Huajun Group Advances Financial Restructuring Efforts

China Huajun Group Limited is actively addressing a disclaimer of opinion from its auditor regarding its financial statements and going concern status. The company is implementing an action plan that includes an offshore debt restructuring and issuing new shares to improve its financial standing. The restructuring became effective in June 2025, and the company plans to issue 24,600,000 new shares to creditors by the end of the year. Additionally, a subscription agreement was made to issue 12,000,000 new shares, with proceeds aimed at general working capital and debt repayment. The company is committed to resolving the disclaimer of opinion and will continue to update stakeholders on its progress.

China Huajun Group Updates on Share Option Scheme in 2024 Annual Report

China Huajun Group Limited has released a supplemental announcement regarding its 2024 Annual Report, focusing on its Share Option Scheme. The company has detailed the number of shares available for issuance under the scheme, which represents approximately 9.80% of the total shares in issue as of the report date. This announcement provides clarity on the company’s share management and may impact investor perceptions regarding the company’s financial strategies.