Xingye Alloy Materials Group Limited (0505) AI Stock Analysis

• Market Cap: HK$817.42M
• Dividend Yield: N/A
• Average Volume (3M): 173.87K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.11
• Revenue Growth: 24.22%
• EPS Growth: -5.91%
• Country: HK
• Employees: 1,757
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 0.13
• Shares Outstanding: 899,558,170
• 10 Day Avg. Volume: 300,310
• 30 Day Avg. Volume: 173,870
• PEG Ratio: 0.13
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -17.84
• 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 Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$1.00 ▲(9.89% Upside)

The overall stock score is primarily driven by strong financial performance and an attractive valuation. The company's robust revenue growth and stable profitability are significant positives, though cash flow challenges need addressing. The stock's low P/E ratio suggests it is undervalued, offering potential upside. Technical indicators are mixed, indicating no strong trend, which slightly tempers the overall score.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Market Position

The focus on innovation and quality positions Xingye Alloy as a competitive player in the alloy materials market, enhancing its market presence.

Profitability

Stable profitability margins reflect efficient cost management and operational effectiveness, supporting sustainable financial performance.

Negative Factors

Cash Flow Challenges

Significant cash flow decline indicates potential liquidity issues, which could impact the company's ability to invest in growth opportunities.

Return on Equity

A decrease in return on equity highlights inefficiencies in capital utilization, potentially affecting investor confidence and long-term growth.

Earnings Growth

Negative earnings per share growth suggests declining profitability, which could hinder future financial performance and shareholder value.

Xingye Alloy Materials Group Limited Business Overview & Revenue Model

Company Description

Xingye Alloy Materials Group Limited manufactures, sells, and trades in high precision copper plates and strips in Mainland China, Taiwan, Hong Kong, Singapore, Bangladesh, Thailand, India, and internationally. The company engages in the trading of raw materials; provision of processing services; and management of a portfolio of investment and development, operation, and distribution of internet and mobile gaming products. The company was formerly known as Huan Yue Interactive Holdings Limited and changed its name to Xingye Alloy Materials Group Limited in July 2020. Xingye Alloy Materials Group Limited was founded in 1985 and is headquartered in Kowloon, Hong Kong.

How the Company Makes Money

Xingye Alloy Materials Group Limited generates revenue primarily through the sale of its alloy products to various industries. The company’s revenue model is largely based on direct sales to manufacturers and distributors, who then incorporate these materials into their own products. Key revenue streams include the sale of aluminum and copper alloys, custom alloy products, and related services such as technical support and product development. Additionally, partnerships with major industrial players and participation in long-term supply contracts enhance its earnings stability. The company's ability to adapt to market demands and maintain high production standards is critical for sustaining its revenue growth.

Xingye Alloy Materials Group Limited Financial Statement Overview

Summary

Xingye Alloy Materials Group Limited demonstrates strong revenue growth and stable profitability, supported by efficient operations. However, the balance sheet reflects a need for improved return on equity, and the cash flow statement highlights significant challenges in cash generation. Overall, the company is on a positive growth path but must address cash flow issues to sustain long-term financial health.

Income Statement

Xingye Alloy Materials Group Limited shows a strong revenue growth rate of 13.31% in the latest year, indicating robust sales performance. The gross profit margin is stable at 9.46%, while the net profit margin is modest at 2.99%. The EBIT and EBITDA margins are healthy, reflecting efficient operational management. Overall, the income statement reflects a positive growth trajectory with stable profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.63 indicates a moderate level of leverage, which is manageable. The equity ratio is not explicitly provided, but the return on equity has decreased to 0%, suggesting challenges in generating returns for shareholders. The balance sheet shows stability with a cautious approach to debt management.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow growth at -91.71%, raising concerns about cash generation. The operating cash flow to net income ratio is low at 0.07, indicating potential cash flow constraints. Despite these challenges, the company has managed to maintain operations, but improvements in cash flow management are necessary.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.65B	8.05B	6.32B	6.24B	6.95B	4.53B
Gross Profit	520.48M	761.55M	610.33M	587.95M	790.47M	536.89M
EBITDA	261.71M	460.29M	356.38M	382.64M	495.03M	307.01M
Net Income	153.34M	241.22M	187.45M	216.61M	276.98M	150.83M
Balance Sheet
Total Assets	6.39B	5.67B	4.64B	4.17B	3.57B	2.96B
Cash, Cash Equivalents and Short-Term Investments	806.20M	859.24M	573.86M	628.54M	359.92M	366.45M
Total Debt	1.82B	1.37B	1.20B	865.78M	867.71M	921.35M
Total Liabilities	4.11B	3.49B	2.67B	2.39B	2.00B	1.72B
Stockholders Equity	2.27B	2.18B	1.96B	1.78B	1.57B	1.23B
Cash Flow
Free Cash Flow	184.65M	-48.92M	-475.59M	174.91M	-64.18M	78.00M
Operating Cash Flow	264.10M	225.35M	-126.97M	331.61M	99.07M	203.67M
Investing Cash Flow	-72.13M	-221.46M	-146.13M	-315.88M	-141.74M	-265.80M
Financing Cash Flow	-202.02M	258.21M	371.90M	42.51M	54.86M	91.16M

Xingye Alloy Materials Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0505, the sentiment is Negative. The current price of 0.91 is below the 20-day moving average (MA) of 0.91, below the 50-day MA of 0.97, and below the 200-day MA of 0.99, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 44.09 is Neutral, neither overbought nor oversold. The STOCH value of 18.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0505.

Xingye Alloy Materials Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0505	73 Outperform	HK$817.42M	3.57	9.41%	―	24.22%	-5.91%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2198	56 Neutral	HK$4.20B	5.57	13.87%	―	9.20%	213.87%
0661	54 Neutral	HK$2.17B	-43.21	-1.52%	―	-4.02%	-1500.00%