Hung Hing Printing Group Limited (0450) AI Stock Analysis

• Market Cap: HK$828.79M
• Dividend Yield: 13.04%
• Average Volume (3M): 237.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -11.14%
• EPS Growth: -280.56%
• Country: HK
• Employees: 4,966
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.05
• Shares Outstanding: 907,865,000
• 10 Day Avg. Volume: 94,400
• 30 Day Avg. Volume: 237,784
• PEG Ratio: 0.15
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 29.16
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$1.00 ▲(8.70% Upside)

The overall stock score of 50 reflects significant financial challenges, including declining revenue and negative cash flows, which are the most impactful factors. The technical analysis shows a neutral trend, while the valuation is mixed with a high dividend yield but negative P/E ratio. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Equity Position

A robust equity position with low leverage enhances financial stability, providing a cushion against economic downturns and flexibility for future investments.

Diverse Revenue Streams

Diverse revenue streams from printing and packaging services, along with long-term contracts, provide a stable income base and reduce dependency on single markets.

Commitment to Innovation

A commitment to innovation and sustainability can drive long-term growth by attracting environmentally conscious clients and adapting to market shifts.

Negative Factors

Declining Revenue

A decline in revenue indicates potential market share loss or reduced demand, which could impact long-term profitability and market positioning.

Negative Cash Flows

Zero cash flow suggests operational inefficiencies and potential liquidity issues, limiting the company's ability to invest in growth opportunities.

Profitability Challenges

Negative profit margins reflect operational challenges and cost management issues, which could hinder long-term financial health and competitiveness.

Hung Hing Printing Group Limited Business Overview & Revenue Model

Company Description

Hung Hing Printing Group Limited, an investment holding company, engages in book and package printing, consumer product packaging, corrugated box, and paper trading in the People's Republic of China, the United States, Hong Kong, the United Kingdom, and internationally. It produces corrugated packaging; prints and produces cards and social stationery items, including diaries, gift sets and bags, and greetings cards; and produces children's and conventional books. The company also offers litholam packaging; novelty items, such as pop-ups, paper mechanisms, pull tabs, and novelty additions or reactive inks; luxury packaging comprising chocolate boxes, cosmetics, fine bone china, and spirits; printed corrugate cartons, flat packs, POS, and POP; prepress services, including film, and color separation and proof production services for packaging, books, magazines, posters, and other paper products; and paper trading services, as well as operates BELUGA, a boutique digital service provider. In addition, it trades in corrugated carton boxes; prints and manufactures paper cartons; and provides professional services, as well as selling and purchasing agency services. Hung Hing Printing Group Limited was founded in 1950 and is headquartered in Tai Po, Hong Kong.

How the Company Makes Money

Hung Hing Printing Group Limited generates revenue through multiple streams, primarily from its core services in commercial printing and packaging. The company earns money by providing customized printing solutions that cater to the specific needs of its clients, which include large corporations and multinational companies across different sectors. Key revenue streams include the production of printed materials such as books, brochures, and packaging products. Additionally, Hung Hing benefits from long-term contracts and partnerships with major brands, which provide a steady flow of orders and contribute to its financial stability. The company also explores opportunities in value-added services such as product design and supply chain management, enhancing its revenue potential. Factors such as technological advancements, efficient production processes, and a strong market presence further bolster its earnings capacity.

Hung Hing Printing Group Limited Financial Statement Overview

Summary

Hung Hing Printing Group Limited is facing notable challenges, with declining revenue and profitability, alongside negative cash flows. While the company maintains a strong equity position with low leverage, the recent lack of profitability and cash flow generation poses significant risks. Strategic improvements in operational efficiency and revenue growth are needed to enhance financial health and stability.

Income Statement

The company has experienced a decline in revenue from HK$2.39 billion in 2023 to HK$2.19 billion in 2024, indicating a -8.05% revenue growth rate. Notably, the gross profit margin decreased from 16.29% in 2023 to 13.97% in 2024, while the net profit margin turned negative at -1.98% in 2024 from 5.66% in 2023. Both EBIT and EBITDA margins have declined, with EBIT margin becoming negative. These factors suggest challenges in maintaining profitability and revenue growth.

Balance Sheet

The company maintains a strong equity base with minimal debt, as reflected by a low debt-to-equity ratio of approximately 0.04 in 2024. The equity ratio remains robust at 82.75%, indicating financial stability. However, the return on equity has turned negative at -1.53%, reflecting recent profitability challenges.

Cash Flow

The cash flow statement reveals a concerning trend with operating and free cash flows at zero in 2024, compared to positive free cash flow in 2023. This suggests significant operational challenges. The lack of cash flow metrics, such as the operating cash flow to net income ratio, further indicates potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.57B	2.19B	2.39B	2.95B	3.53B	2.55B
Gross Profit	205.97M	306.51M	388.91M	419.85M	478.19M	423.17M
EBITDA	31.22M	96.96M	301.63M	211.54M	200.89M	251.04M
Net Income	-63.28M	-43.36M	135.16M	66.04M	51.95M	109.36M
Balance Sheet
Total Assets	3.29B	3.44B	3.81B	3.99B	4.30B	4.14B
Cash, Cash Equivalents and Short-Term Investments	760.46M	975.48M	1.12B	1.25B	1.07B	1.36B
Total Debt	76.63M	101.61M	165.06M	229.60M	200.60M	130.41M
Total Liabilities	457.73M	476.96M	636.06M	795.10M	957.81M	752.04M
Stockholders Equity	2.72B	2.84B	3.05B	3.05B	3.19B	3.24B
Cash Flow
Free Cash Flow	149.02M	30.36M	13.71M	285.98M	-338.21M	156.27M
Operating Cash Flow	179.23M	88.04M	277.57M	455.95M	-161.56M	270.61M
Investing Cash Flow	-86.59M	36.49M	-240.51M	-3.28M	7.07M	-279.03M
Financing Cash Flow	-129.64M	-204.57M	-208.51M	-135.01M	-66.99M	-121.11M

Hung Hing Printing Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0450, the sentiment is Negative. The current price of 0.92 is above the 20-day moving average (MA) of 0.92, above the 50-day MA of 0.92, and above the 200-day MA of 0.91, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 27.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0450.

Hung Hing Printing Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1540	74 Outperform	HK$214.43M	6.04	12.81%	18.18%	-7.56%	-2.06%
1127	74 Outperform	HK$992.16M	4.76	14.20%	7.86%	-4.03%	8.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1975	63 Neutral	HK$175.20M	-1.98	-20.83%	8.60%	-26.30%	-617.37%
0450	50 Neutral	HK$828.79M	-9.42	-3.21%	13.04%	-11.14%	-280.56%
8385	46 Neutral	HK$19.00M	-0.42	―	―	-92.47%	14.17%
8448	41 Neutral	HK$41.42M	45.60	8.43%	―	-6.56%	―