Hung Hing Printing Group Limited (0450) AI Stock Analysis

• Market Cap: €846.81M
• Dividend Yield: 12.65%
• Average Volume (3M): 221.02K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.07
• Revenue Growth: -8.05%
• EPS Growth: -131.89%
• Country: HK
• Employees: 4,966
• Sector: Industrials
• Sector Strength: 78
• Industry: Specialty Business Services
• EPS (TTM): -0.04
• Shares Outstanding: 907,865,000
• 10 Day Avg. Volume: 224,400
• 30 Day Avg. Volume: 221,023
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €1.00
• Price Target Upside: 6.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: HK$1.00 ▲(6.38% Upside)

The overall stock score of 51 reflects significant financial challenges, including declining revenue and negative cash flows, which are the most impactful factors. Technical analysis shows mixed signals with bearish momentum, while the valuation is supported by a high dividend yield but offset by a negative P/E ratio. The absence of earnings call insights and corporate events leaves these areas unaddressed.

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 primarily through its diverse array of printing and packaging services. Key revenue streams include book and commercial printing, where the company provides services to publishers and businesses for the production of books, magazines, and promotional materials. Additionally, the company earns significant income from its consumer product packaging segment, creating customized packaging solutions for various industries, including food and beverage, cosmetics, and electronics. The corrugated box manufacturing division also contributes to the company's earnings by supplying durable packaging solutions for transportation and storage needs. Furthermore, Hung Hing engages in paper trading, which involves the distribution of paper products to other businesses, enhancing its revenue base. Strategic partnerships with leading global brands and a strong focus on innovation and sustainability are crucial factors that bolster the company's financial performance.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.19B	2.39B	2.95B	3.53B	2.55B
Gross Profit	306.51M	388.91M	419.85M	478.19M	423.17M
EBITDA	96.96M	301.63M	211.54M	200.89M	251.04M
Net Income	-43.36M	135.16M	66.04M	51.95M	109.36M
Balance Sheet
Total Assets	3.44B	3.81B	3.99B	4.30B	4.14B
Cash, Cash Equivalents and Short-Term Investments	975.48M	1.12B	1.25B	1.07B	1.36B
Total Debt	101.61M	165.06M	229.60M	200.60M	130.41M
Total Liabilities	476.96M	636.06M	795.10M	957.81M	752.04M
Stockholders Equity	2.84B	3.05B	3.05B	3.19B	3.24B
Cash Flow
Free Cash Flow	29.47M	13.71M	285.98M	-338.21M	156.27M
Operating Cash Flow	88.04M	277.57M	455.95M	-161.56M	270.61M
Investing Cash Flow	36.49M	-240.51M	-3.28M	7.07M	-279.03M
Financing Cash Flow	-201.87M	-208.51M	-135.01M	-66.99M	-121.11M

Hung Hing Printing Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.94
• 50DMA: Negative
• 100DMA: Negative
• 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:0450, the sentiment is Negative. The current price of 0.94 is below the 20-day moving average (MA) of 0.96, below the 50-day MA of 0.96, and above the 200-day MA of 0.93, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.17 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 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
1127	78 Outperform	HK$1.08B	5.11	14.47%	7.02%	4.13%	14.42%
1540	68 Neutral	HK$224.40M	6.55	12.14%	17.78%	-5.82%	2.69%
Sector *	64 Neutral	$10.78B	16.39	5.87%	2.08%	2.65%	-16.28%
1975	63 Neutral	HK$189.60M	13.30	3.04%	8.86%	-26.49%	-16.57%
0450	51 Neutral	€846.81M	18.32	-1.46%	12.65%	-8.05%	-131.89%
8448	43 Neutral	HK$19.96M	29.35	8.15%	―	134.32%	―
8385	41 Neutral	HK$8.87M	―	-363.24%	―	-65.76%	-84.78%

Hung Hing Printing Group Limited Corporate Events

Hung Hing Printing Group Issues Profit Warning Amid Trade Challenges

Hung Hing Printing Group Limited has issued a profit warning, indicating an expected loss of approximately HK$49 million for the first half of 2025, a significant increase from the HK$4 million loss in the same period last year. The company attributes this downturn to the adverse impact of US tariffs and policy uncertainties affecting global trade, which have pressured its export shipments and profit margins. In response, the group is taking strategic measures to rebalance its business portfolio, including expanding production capacity in Vietnam and developing new business segments in Hong Kong and the PRC.

Hung Hing Printing Appoints Independent Director

Hung Hing Printing Group Limited announced the appointment of Mr. Lee Danny Lap as an independent non-executive director. Mr. Lee has confirmed his independence according to the relevant rules and has no financial or other interests in the company’s business, ensuring no factors affect his independence.

Hung Hing Printing Group Announces Board Changes

Hung Hing Printing Group Limited has announced a change in its board of directors, with Mr. Lo Chi Hong retiring as an independent non-executive director, and Mr. Lee Danny Lap being appointed in his place. Mr. Lee brings over 25 years of global private equity experience to the company, which could enhance its strategic direction and investment opportunities. The board expressed gratitude for Mr. Lo’s contributions and welcomed Mr. Lee, highlighting his extensive background in venture capital and private equity as a valuable asset for the company’s future endeavors.

Hung Hing Printing Group Limited Announces Board and Committee Structure

Hung Hing Printing Group Limited has announced the composition of its Board of Directors, which includes executive, non-executive, and independent non-executive directors. The announcement also details the membership of the company’s three key committees: the Audit Committee, Remuneration Committee, and Nomination Committee. This structured governance framework is crucial for maintaining transparency and effective management, impacting the company’s operational oversight and strategic direction.

Hung Hing Printing Group Successfully Passes All Resolutions at AGM

Hung Hing Printing Group Limited announced that all ordinary resolutions proposed at their annual general meeting on May 27, 2025, were successfully passed by shareholders. This includes the approval of financial statements, dividend declarations, re-election and appointment of directors, and the granting of mandates for share issuance and repurchase. The successful passing of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic growth.