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

• Market Cap: HK$368.31M
• Dividend Yield: N/A
• Average Volume (3M): 5.19M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.27
• Revenue Growth: 38.86%
• EPS Growth: N/A
• Country: HK
• Employees: 445
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): <0.01
• Shares Outstanding: 1,037,500,000
• 10 Day Avg. Volume: 5,358,917
• 30 Day Avg. Volume: 5,189,572
• PEG Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$0.37 ▲(24.33% Upside)

The overall stock score of 60 reflects a strong financial performance with significant improvements in revenue and cash flow. However, the technical indicators suggest a bearish trend, and the valuation is moderate with no dividend yield. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a high equity base provide durable financial flexibility. This allows the company to fund capex, absorb cyclical downturns, pursue strategic partnerships or M&A, and maintain operations without stress from interest obligations over the next several quarters.

Cash Generation

Significant free cash flow improvement and operating cash flow well above net income indicate strong cash conversion. That durable cash generation supports reinvestment in R&D, service capabilities, working capital and selective capex without needing frequent external financing.

Revenue and Gross Margin Recovery

Sustained revenue growth alongside gross margin expansion to 33.82% shows improving demand and cost management. For an automation-equipment provider servicing electronics and automotive, this trend supports durable market share gains and reinvestment capacity for product development.

Negative Factors

Low Net Profit Margin

Net margins near 9% limit the company's ability to convert revenue into retained earnings. Over time this constrains the internal funding available for aggressive R&D, pricing tolerance, or buffer against demand shocks, making profitability improvements critical for durable returns.

Modest Return on Equity

ROE at roughly 1% despite a strong equity base signals low capital efficiency. Persistently weak returns on shareholders' equity can limit long-term value creation and investor confidence, indicating a need to improve margins, asset turnover, or capital allocation to raise durable profitability.

Cyclicality of End Markets

Concentration in capital-intensive, cyclical industries ties revenue to customers’ capex cycles. Demand for automation equipment can fluctuate with electronics and auto investment cycles and macro conditions, creating structural revenue volatility and necessitating stronger diversification or recurring-service mix.

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

Company Description

China High Precision Automation Group Ltd. (0591) is a leading provider of automation solutions in China, specializing in high-precision equipment and technology. The company operates primarily in the manufacturing sector, focusing on industries such as electronics, automotive, and machinery. Its core products include automation systems, precision components, and advanced robotics designed to enhance production efficiency and precision for its clients.

How the Company Makes Money

China High Precision Automation Group Ltd. generates revenue through the sale of its automation solutions and precision equipment to various industries. Key revenue streams include direct sales of machinery and systems, ongoing maintenance and support services, as well as customized automation solutions tailored to specific client needs. The company also benefits from strategic partnerships with major manufacturers and technology providers, which enhance its product offerings and market reach. Additionally, participation in government contracts and initiatives aimed at promoting industrial automation contributes to its earnings.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	193.55M	208.94M	139.20M	141.54M	138.34M	128.08M
Gross Profit	65.48M	70.68M	35.03M	34.99M	32.44M	10.94M
EBITDA	41.17M	41.17M	-9.79M	2.74M	-10.27M	3.18M
Net Income	17.57M	18.83M	-32.73M	-22.69M	-35.88M	-25.90M
Balance Sheet
Total Assets	1.98B	1.98B	1.78B	1.81B	1.82B	1.86B
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.60B	1.42B	1.44B	1.43B	1.42B
Total Debt	147.00K	147.00K	14.54M	174.00K	710.00K	1.58M
Total Liabilities	95.81M	95.81M	89.83M	93.47M	81.68M	84.55M
Stockholders Equity	1.87B	1.87B	1.69B	1.72B	1.74B	1.77B
Cash Flow
Free Cash Flow	23.30M	37.56M	-7.29M	1.24M	10.12M	-47.19M
Operating Cash Flow	23.30M	39.47M	-6.41M	1.48M	10.45M	-46.63M
Investing Cash Flow	1.25M	-1.15M	-27.99M	3.55M	6.03M	3.81M
Financing Cash Flow	-570.00K	4.22M	6.82M	5.88M	-935.00K	-1.20M

China High Precision Automation Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.3 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.32, and below the 200-day MA of 0.32, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 71.57 is Negative, neither overbought nor oversold. The STOCH value of 86.17 is Negative, 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	77 Outperform	HK$300.00M	7.02	5.64%	5.22%	-16.27%	-36.15%
0040	69 Neutral	HK$667.84M	16.74	3.78%	3.73%	2.10%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0591	60 Neutral	HK$368.31M	19.51	1.03%	―	38.86%	―
0894	54 Neutral	HK$393.04M	41.21	0.63%	0.63%	5.72%	-57.39%
0532	48 Neutral	HK$226.27M	-1.93	-8.12%	―	6.32%	28.39%
2363	43 Neutral	HK$62.29M	19.30	―	―	53.37%	-75.77%

China High Precision Automation Group Ltd. Corporate Events

China High Precision Automation Group Ltd. Successfully Passes AGM Resolutions

China High Precision Automation Group Ltd. announced that all resolutions proposed at its Annual General Meeting on December 11, 2025, were passed by poll. The resolutions included the approval of financial statements, re-election of directors, re-appointment of auditors, and granting of mandates for share issuance and repurchase. This successful AGM reflects the company’s stable governance and shareholder support, potentially strengthening its market position and operational strategies.

The most recent analyst rating on (HK:0591) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China High Precision Automation Group Ltd. stock, see the HK:0591 Stock Forecast page.

China High Precision Automation Group Ltd. Announces AGM with Key Resolutions

China High Precision Automation Group Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for December 11, 2025, in Fuzhou, Fujian, China. The meeting will address key resolutions including the approval of audited financial statements, re-election of directors, and re-appointment of auditors. This AGM is significant for stakeholders as it will discuss the company’s future strategic directions, including the authorization for directors to allot and issue additional shares, potentially impacting the company’s market positioning and shareholder value.

The most recent analyst rating on (HK:0591) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China High Precision Automation Group Ltd. stock, see the HK:0591 Stock Forecast page.