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

• Market Cap: HK$250.04M
• Dividend Yield: N/A
• Average Volume (3M): 4.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 25.23%
• EPS Growth: 57.14%
• Country: HK
• Employees: 445
• Sector: Technology
• Sector Strength: 81
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.02
• Shares Outstanding: 1,037,500,000
• 10 Day Avg. Volume: 6,288,241
• 30 Day Avg. Volume: 4,670,880
• PEG Ratio: 0.26
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 172.87
• 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: 52 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is primarily influenced by the company's strong balance sheet, offset by poor profitability and cash flow performance. Technical analysis indicates weak bullish momentum, while the negative valuation metrics further weigh on the score.

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. makes money through the sale of its automation instruments and technology solutions. Its revenue streams include manufacturing and distributing high precision automation equipment to various industrial sectors, which rely on these products for efficient production and operational processes. The company may also engage in partnerships with industrial firms to provide customized automation solutions, thereby enhancing its revenue potential. Additionally, any service contracts or maintenance agreements related to its products could contribute to its earnings.

China High Precision Automation Group Ltd. Financial Statement Overview

Summary

China High Precision Automation Group Ltd. shows financial stability with a robust balance sheet and low leverage, yet significant challenges in profitability and cash flow generation persist. Negative profit margins and inconsistent cash flows highlight operational inefficiencies and potential risks despite being well-capitalized.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
182.94M	139.20M	141.54M	138.34M	128.08M	99.21M
	Gross Profit
62.60M	35.03M	34.99M	32.44M	10.94M	-5.74M
	EBIT
-11.74M	-33.24M	-21.73M	-27.55M	-21.14M	-96.33M
	EBITDA
22.57M	-9.79M	2.74M	-11.27M	3.18M	-51.45M
	Net Income Common Stockholders
-11.24M	-32.73M	-22.69M	-35.88M	-25.90M	-87.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.44B	1.42B	1.44B	1.43B	1.42B	1.46B
	Total Assets
1.80B	1.78B	1.81B	1.82B	1.86B	1.88B
	Total Debt
13.98M	675.00K	174.00K	710.00K	1.58M	2.77M
	Net Debt
-1.43B	-1.42B	-1.44B	-1.43B	-1.42B	-1.46B
	Total Liabilities
95.32M	89.83M	93.47M	81.68M	84.55M	76.93M
	Stockholders Equity
1.71B	1.69B	1.72B	1.74B	1.77B	1.81B
Cash Flow		Free Cash Flow
25.33M	-7.29M	1.24M	10.12M	-47.19M	20.45M
	Operating Cash Flow
26.21M	-6.41M	1.48M	10.45M	-46.63M	21.30M
	Investing Cash Flow
1.90M	-27.99M	3.55M	6.03M	3.81M	3.86M
	Financing Cash Flow
3.31M	6.82M	5.88M	-935.00K	-1.20M	-1.82M

China High Precision Automation Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.26
• 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 0.26 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.24, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 59.92 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
Sector *	62 Neutral	$11.89B	9.95	-7.22%	4.98%	7.31%	-8.91%
0591	52 Neutral	HK$250.04M	―	-0.66%	―	25.23%	57.14%
CPWIF		$4.79B	10.19	8.59%	5.87%	―	―
CSPKF		$2.53B	5.87	5.64%	6.94%	―	―
DNGFF		$7.52B	9.04	8.13%	5.23%	―	―
SIELF		$13.63B	40.89	1.91%	―	―	―
ZHUZF		$5.84B	11.10	9.62%	2.79%	―	―

China High Precision Automation Group Ltd. Corporate Events

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.