Fufeng Group Limited (0546) AI Stock Analysis

• Market Cap: €17.10B
• Dividend Yield: 9.38%
• Average Volume (3M): 3.54M
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.61
• Revenue Growth: -2.74%
• EPS Growth: -27.33%
• Country: HK
• Employees: 17,376
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): 1.00
• Shares Outstanding: 2,507,096,000
• 10 Day Avg. Volume: 3,936,252
• 30 Day Avg. Volume: 3,543,830
• PEG Ratio: -0.59
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.21
• 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: €7.98
• Price Target Upside: 15.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: HK$8.00 ▲(15.61%Upside)

The stock has a solid overall score driven primarily by its strong technical indicators and attractive valuation. While financial performance is healthy, attention to debt management and cash flow improvements could enhance future prospects.

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 Limited generates revenue through the production and sale of its bio-fermentation products. The company earns money by supplying its products to a diverse range of industries, including food and beverage, pharmaceuticals, and agriculture. Its key revenue streams include the sale of monosodium glutamate (MSG), which is extensively used as a flavor enhancer in the food industry, and xanthan gum, a thickening agent used in food and other industrial applications. Additionally, Fufeng produces amino acids and fertilizers that cater to the agricultural sector. Strategic partnerships with distributors and a strong presence in domestic and international markets also contribute significantly to its earnings.

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 and recent cash flow challenges slightly reduce the score.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.76B	28.01B	27.47B	21.54B	16.69B
Gross Profit	5.06B	6.25B	7.21B	3.91B	2.82B
EBITDA	3.44B	4.47B	6.26B	2.89B	2.11B
Net Income	2.31B	3.14B	3.86B	1.28B	629.90M
Balance Sheet
Total Assets	36.09B	32.56B	26.39B	21.51B	19.36B
Cash, Cash Equivalents and Short-Term Investments	10.03B	2.83B	7.08B	3.59B	1.27B
Total Debt	11.37B	9.73B	6.04B	4.23B	3.47B
Total Liabilities	17.75B	15.24B	10.89B	8.83B	7.67B
Stockholders Equity	18.34B	17.32B	15.49B	12.68B	11.69B
Cash Flow
Free Cash Flow	1.73B	-618.75M	2.61B	2.28B	-782.99M
Operating Cash Flow	2.96B	1.70B	3.60B	2.77B	205.62M
Investing Cash Flow	-1.10B	-1.51B	-647.64M	-549.54M	-1.11B
Financing Cash Flow	1.10B	-436.59M	92.41M	525.07M	-99.11M

Fufeng Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.92
• 50DMA: Positive
• 100DMA: Positive
• 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:0546, the sentiment is Positive. The current price of 6.92 is below the 20-day moving average (MA) of 6.95, above the 50-day MA of 6.82, and above the 200-day MA of 5.56, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 71.29 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
0546	76 Outperform	€17.10B	6.85	12.81%	9.38%	-2.74%	-27.33%
Sector *	62 Neutral	$10.14B	9.96	0.09%	2.90%	2.26%	-33.42%
HUABF	―	$1.23B	67.41	-3.15%	4.81%	―	―
YIPCF	―	$121.88M	10.00	2.51%	12.91%	―	―
1986	54 Neutral	HK$811.61M	55.38	-1.16%	6.50%	2.49%	-171.78%
3318	53 Neutral	HK$2.05B	105.43	0.59%	―	-21.05%	-87.68%
1440	52 Neutral	HK$10.24B	―	-4.12%	―	83.59%	-23.60%

Fufeng Group Limited Corporate Events

Fufeng Group Limited Successfully Passes All Resolutions at 2025 AGM

Fufeng Group Limited, a company incorporated in the Cayman Islands, held its Annual General Meeting on May 29, 2025. During the meeting, all proposed resolutions were passed, including the adoption of financial statements, approval of dividends, re-election of directors, and granting of mandates to issue and repurchase shares. The successful passing of these resolutions indicates strong shareholder support and positions the company for continued operational and strategic initiatives.

Fufeng Group Limited Announces 2025 AGM and Key Resolutions

Fufeng Group Limited has announced its upcoming annual general meeting scheduled for May 29, 2025, where key agenda items include the adoption of financial statements, approval of dividends, re-election of directors, and re-appointment of auditors. Additionally, the company seeks shareholder approval for a general mandate to issue new shares, which could impact its capital structure and market positioning.