Fufeng Group Limited (0546) AI Stock Analysis

• Market Cap: HK$17.70B
• Dividend Yield: 9.06%
• Average Volume (3M): 3.74M
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.65
• Revenue Growth: -2.74%
• EPS Growth: -27.33%
• Country: HK
• Employees: 17,376
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): 1.00
• Shares Outstanding: 2,507,096,000
• 10 Day Avg. Volume: 3,539,329
• 30 Day Avg. Volume: 3,742,732
• PEG Ratio: 0.01
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.07
• 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

• Rating: 76 Outperform
• Price Target: HK$8.00 ▲(12.36%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 (0546) is a leading bio-fermentation-based manufacturing company in China. It primarily operates in the sectors of amino acids, xanthan gum, and other fermentation-derived products. The company's core products include monosodium glutamate (MSG), xanthan gum, and various amino acids and fertilizers, which are widely used in the food, pharmaceutical, and agricultural industries.

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
	EBIT
2.54B	3.70B	4.79B	1.67B	879.81M
	EBITDA
3.44B	4.47B	6.26B	2.89B	2.11B
	Net Income Common Stockholders
2.31B	3.14B	3.86B	1.28B	629.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.03B	2.83B	7.08B	3.59B	1.27B
	Total Assets
36.09B	32.56B	26.39B	21.51B	19.36B
	Total Debt
11.37B	9.73B	6.04B	4.23B	3.47B
	Net Debt
1.46B	6.89B	-963.64M	686.56M	2.24B
	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: 7.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 7.12 is above the 20-day moving average (MA) of 6.79, above the 50-day MA of 6.42, and above the 200-day MA of 5.25, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 68.23 is Neutral, neither overbought nor oversold. The STOCH value of 88.13 is Negative, 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	HK$17.70B	7.09	12.81%	9.06%	-2.74%	-27.33%
1579	73 Outperform	HK$13.41B	16.72	15.77%	6.20%	4.68%	-14.34%
1110	70 Outperform	HK$357.83M	7.54	6.61%	5.37%	-3.59%	4.81%
1717	66 Neutral	HK$3.50B	13.71	4.14%	2.97%	-1.56%	30.87%
6068	57 Neutral	HK$231.81M	2.13	16.80%	51.40%	-41.24%	-36.17%
Sector *	51 Neutral	$2.02B	-1.23	-21.09%	4.37%	2.90%	-30.49%
3836	47 Neutral	€877.97M	―	-5.36%	6.17%	-7.58%	-21.25%

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.

Fufeng Group Limited Announces Final Dividend for 2024

Fufeng Group Limited has announced a final cash dividend of HKD 0.19 per share for the financial year ending December 31, 2024. The dividend will be paid on June 27, 2025, following shareholder approval on May 29, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

Fufeng Group Limited Announces Special Cash Dividend for 2024

Fufeng Group Limited has announced a special cash dividend of HKD 0.03 per share for the financial year ending December 31, 2024. The dividend will be paid on June 27, 2025, following shareholder approval on May 29, 2025. The announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

Fufeng Group Reports Decline in 2024 Financial Results

Fufeng Group Limited, a company incorporated in the Cayman Islands, reported a slight decrease in revenue by 0.9% to approximately RMB27.8 billion for the year ended December 31, 2024. The company’s overall gross profit decreased by 19.1% to approximately RMB5.1 billion, with profit attributable to shareholders declining by 26.5% to RMB2.3 billion. The Board of Directors proposed a final dividend of HK22 cents per share, resulting in a full-year dividend of HK40 cents per share, down from HK58 cents in 2023.