China High Precision Automation Group Ltd. (0591) AI Stock Analysis

• Market Cap: HK$399.44M
• Dividend Yield: N/A
• Average Volume (3M): 9.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: 25.23%
• EPS Growth: 57.14%
• Country: HK
• Employees: 445
• Sector: Technology
• Sector Strength: 94
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.02
• Shares Outstanding: 1,037,500,000
• 10 Day Avg. Volume: 4,977,836
• 30 Day Avg. Volume: 9,571,012
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: HK$0.50 ▲(31.58% Upside)

The overall stock score is primarily driven by strong technical analysis, indicating positive momentum. However, significant operational inefficiencies and negative valuation metrics weigh down the score. The company needs to address its profitability issues to enhance investor confidence.

China High Precision Automation Group Ltd. Business Overview & Revenue Model

Company Description

China High Precision Automation Group Limited manufactures and sells high precision industrial automation instrument and technology products in China. The company operates through Automation Instrument and Technology Products and Horological Instruments segments. The Automation Instrument and Technology Products segment manufactures and trades in intelligent display instruments, flow accumulate instruments, pressure transmitters, and logging control instruments. The Horological Instruments manufactures and sells multi-functional all-plastic quartz watch movements. It also offers pressure and temperature transmitter; instrument valves and tube fittings; and flowmeter. China High Precision Automation Group Limited was founded in 1991 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

China High Precision Automation Group Ltd. generates revenue through the sale of its high-precision industrial automation instruments and related components. The company's key revenue streams include product sales to industrial clients across different sectors that require precision and automation technology to enhance their operational efficiency. Its earnings are significantly influenced by its ability to maintain strong relationships with its industrial clients, its expertise in innovation and development of advanced automation solutions, and its capacity to adapt to market demands. The company may also engage in strategic partnerships to expand its product offerings or to enter new markets, contributing to its overall financial performance.

China High Precision Automation Group Ltd. Financial Statement Overview

Summary

The company shows financial stability with a strong balance sheet and low leverage. However, it faces significant challenges in profitability with negative profit margins and inconsistent cash flows, indicating operational inefficiencies.

Income Statement

The company has shown a mixed performance in revenue, with recent declines. Gross and net profit margins are negative and deteriorating, indicating ongoing losses. While there have been occasional improvements in gross profit, the company's EBIT and EBITDA margins are consistently negative, reflecting operational challenges and inefficiencies.

Balance Sheet

The company maintains a strong equity position, with a high equity ratio and low debt levels, indicating financial stability. The debt-to-equity ratio is minimal, and the company has ample cash reserves. However, the negative ROE highlights inefficiencies in generating profits from shareholder equity.

Cash Flow

Cash flow performance is inconsistent, with volatile free cash flow growth and negative operating cash flow in recent periods. The firm struggles to convert operating cash flow into net income, impacting financial flexibility. Despite occasional positive free cash flow, sustainability remains a concern.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	139.20M	141.54M	138.34M	128.08M	99.21M
Gross Profit	35.03M	34.99M	32.44M	10.94M	-5.74M
EBITDA	-9.79M	2.74M	-11.27M	3.18M	-51.45M
Net Income	-32.73M	-22.69M	-35.88M	-25.90M	-87.94M
Balance Sheet
Total Assets	1.78B	1.81B	1.82B	1.86B	1.88B
Cash, Cash Equivalents and Short-Term Investments	1.42B	1.44B	1.43B	1.42B	1.46B
Total Debt	675.00K	174.00K	710.00K	1.58M	2.77M
Total Liabilities	89.83M	93.47M	81.68M	84.55M	76.93M
Stockholders Equity	1.69B	1.72B	1.74B	1.77B	1.81B
Cash Flow
Free Cash Flow	-7.29M	1.24M	10.12M	-47.19M	20.45M
Operating Cash Flow	-6.41M	1.48M	10.45M	-46.63M	21.30M
Investing Cash Flow	-27.99M	3.55M	6.03M	3.81M	3.86M
Financing Cash Flow	6.82M	5.88M	-935.00K	-1.20M	-1.82M

China High Precision Automation Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.38
• 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:0591, the sentiment is Positive. The current price of 0.38 is below the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.33, and above the 200-day MA of 0.21, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.64 is Neutral, neither overbought nor oversold. The STOCH value of 42.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0591.

China High Precision Automation Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1480	65 Neutral	HK$244.80M	4.06	8.23%	5.77%	-7.93%	-19.66%
0591	64 Neutral	HK$399.44M	―	-0.66%	―	25.23%	57.14%
Sector *	57 Neutral	HK$14.14B	9.45	-2.83%	4.83%	9.29%	-48.65%
0040	53 Neutral	HK$595.64M	19.88	2.74%	3.79%	3.64%	-1468.75%
0894	51 Neutral	HK$202.11M	25.91	0.52%	1.18%	9.56%	90.70%
0532	51 Neutral	HK$222.62M	―	-12.76%	―	-5.65%	-43.21%
2363	45 Neutral	HK$71.48M	5.06		―	-21.55%	83.95%

China High Precision Automation Group Ltd. Corporate Events

China High Precision Automation Group Ltd. Forms Nomination Committee to Strengthen Governance

China High Precision Automation Group Ltd. has established a Nomination Committee to enhance its corporate governance structure. The committee, comprising a majority of independent non-executive directors, is tasked with reviewing the board’s composition, identifying qualified board members, and ensuring diversity and effective board performance. This initiative aims to align the board’s capabilities with the company’s strategic goals, potentially impacting its operational efficiency and stakeholder confidence.

China High Precision Automation Grants Share Options to Boost Growth

China High Precision Automation Group Ltd. has announced the grant of 33,474,000 share options to eligible participants under its share option scheme. This initiative, aimed at recognizing past contributions and incentivizing future growth, represents approximately 3.23% of the company’s issued shares and is expected to enhance stakeholder alignment with the company’s long-term objectives.