Fufeng Group Limited (0546) AI Stock Analysis

• Market Cap: HK$21.21B
• Dividend Yield: 5.31%
• Average Volume (3M): 4.55M
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.60
• Revenue Growth: 1.77%
• EPS Growth: 16.24%
• Country: HK
• Employees: 17,376
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.79
• Shares Outstanding: 2,507,241,000
• 10 Day Avg. Volume: 5,636,047
• 30 Day Avg. Volume: 4,549,355
• PEG Ratio: -0.22
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 7.47
• 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: 65 Neutral
• Price Target: HK$8.50 ▲(6.25% Upside)

The stock's overall score is driven by strong financial performance and attractive valuation, offset by bearish technical indicators. The company's solid revenue growth and profitability are positive, but the technical analysis suggests caution due to current market momentum. The low P/E ratio and high dividend yield enhance the stock's appeal, despite concerns over cash flow and debt levels.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Product Diversification

Diverse product offerings across multiple sectors reduce reliance on a single market, enhancing resilience against industry-specific downturns.

Market Position

Strong market position in key industries provides competitive advantages, enabling better pricing power and customer retention.

Negative Factors

Debt Levels

Rising debt levels may strain financial resources, limiting the company's ability to invest in growth opportunities or weather economic downturns.

Cash Flow Concerns

Lack of operating cash flow can hinder the company's ability to fund operations and meet financial obligations, affecting long-term sustainability.

Revenue Growth Decline

A decline in revenue growth may signal challenges in market expansion or increased competition, potentially impacting future profitability.

Fufeng Group Limited Business Overview & Revenue Model

Company Description

Fufeng Group Limited, an investment holding company, engages in the manufacture and sale of fermentation-based food additive, and biochemical and starch-based products in the People's Republic of China and internationally. It operates through Food Additives, Animal Nutrition, High-End Amino Acid, Colloid, and Other segments. The Food Additives segment manufactures and sells monosodium glutamate, starch sweeteners, glutamic acid, compound seasoning, and corn oil. The Animal Nutrition segment manufactures and sells corn refined products, threonine, and lysine. The High-End Amino Acid segment offers high-end amino acid products. The Colloid segment provides xanthan and gellan gum products. The Other segment offers fertilisers, synthetic ammonia, pharmaceuticals, and other products. It also engages in the manufacture and sale of autoclaved aerated concrete blocks, eubacteria material medicine, preparations and food additives, bricks, and other related products; research and development, promotion, and industrialization of new biological techniques and achievements; sale of cosmetics, biological products, and health food and other related products; and provision of logistics and equity investment services, as well as information services of biological techniques. Fufeng Group Limited was founded in 1999 and is based in Linyi, the People's Republic of China.

How the Company Makes Money

Fufeng Group generates revenue primarily through the sale of its core products, which include amino acids, sweeteners, and other fermentation products. The company's revenue model is diversified across various sectors, with significant income derived from both domestic and international markets. Key revenue streams include sales to the animal feed industry, where its amino acids are used to improve livestock health and productivity, and the food industry, where its products serve as flavor enhancers and nutritional supplements. The company also benefits from strategic partnerships and collaborations that enhance its distribution capabilities and market access, contributing to its overall earnings. Additionally, Fufeng's focus on research and development allows it to innovate and expand its product portfolio, further driving revenue growth.

Fufeng Group Limited Financial Statement Overview

Summary

Fufeng Group Limited shows strong revenue growth and profitability, with a solid balance sheet. However, the increase in debt levels and concerns over cash flow, particularly the recent drop in operating cash flow, require careful monitoring.

Income Statement

The income statement reflects robust financial performance with a consistent revenue growth trend over the years. The gross profit margin for the latest period is approximately 18.22%, and the net profit margin stands at 8.33%. Despite a slight decline in revenue growth in 2024, the company has maintained strong EBIT and EBITDA margins, indicating efficient operational management.

Balance Sheet

The balance sheet is relatively strong with a stable equity base and a manageable debt-to-equity ratio of 0.62. The equity ratio is approximately 50.8%, highlighting a solid asset base. However, there has been an increase in total debt, which could pose potential risks if not managed carefully.

Cash Flow

Cash flow analysis indicates some concerns with operating cash flow being zero in the latest period, which could impact liquidity. Historical data shows fluctuations in free cash flow, with a negative trend in the recent year. The free cash flow to net income ratio was negative previously, pointing to challenges in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.35B	27.76B	28.01B	27.47B	21.54B	16.69B
Gross Profit	5.93B	5.06B	6.25B	7.21B	3.91B	2.82B
EBITDA	4.37B	3.44B	4.47B	6.26B	2.89B	2.11B
Net Income	3.06B	2.31B	3.14B	3.86B	1.28B	629.90M
Balance Sheet
Total Assets	38.93B	36.09B	32.56B	26.39B	21.51B	19.36B
Cash, Cash Equivalents and Short-Term Investments	11.67B	10.03B	2.83B	7.08B	3.59B	1.27B
Total Debt	13.49B	11.37B	9.73B	5.95B	4.23B	3.54B
Total Liabilities	19.31B	17.75B	15.24B	10.89B	8.83B	7.67B
Stockholders Equity	19.62B	18.34B	17.32B	15.49B	12.68B	11.69B
Cash Flow
Free Cash Flow	-403.39M	1.73B	-618.75M	2.61B	2.28B	-782.99M
Operating Cash Flow	-9.51M	2.96B	1.70B	3.60B	2.77B	205.62M
Investing Cash Flow	-450.06M	-1.10B	-1.51B	-647.64M	-549.54M	-1.11B
Financing Cash Flow	465.47M	1.10B	-436.59M	92.41M	525.07M	-99.11M

Fufeng Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0546, the sentiment is Positive. The current price of 8 is below the 20-day moving average (MA) of 8.40, below the 50-day MA of 8.19, and above the 200-day MA of 7.86, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 53.91 is Neutral, neither overbought nor oversold. The STOCH value of 54.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0546.

Fufeng Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0408	69 Neutral	HK$1.09B	8.39	3.36%	7.85%	-5.37%	25.20%
0546	65 Neutral	HK$21.21B	6.43	17.00%	5.31%	1.77%	16.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1986	56 Neutral	HK$915.80M	-29.90	-1.52%	5.55%	0.37%	-331.54%
0336	55 Neutral	HK$16.47B	-45.91	-2.45%	3.48%	1.52%	-373.77%
3318	49 Neutral	HK$1.94B	-51.32	-1.08%	―	-23.46%	-126.64%
1440	49 Neutral	HK$9.54B	-268.03	-11.48%	―	10.08%	-525.53%