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

• Market Cap: HK$306.06M
• Dividend Yield: N/A
• Average Volume (3M): 5.19M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.21
• 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$0.31 ▲(3.33% 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

Revenue Growth

Sustained revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Balance Sheet Strength

Minimal leverage reduces financial risk and increases the company's ability to finance future growth without incurring significant debt.

Negative Factors

Net Profit Margin

Low net profit margins suggest that operational expenses are high, which could limit profitability and affect long-term financial health.

Operational Efficiency

While margins have improved, ongoing efforts are needed to enhance operational efficiency to ensure sustainable profitability.

Management Quality

Modest return on equity indicates that management may need to optimize asset utilization and investment strategies for better shareholder returns.

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: Neutral
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 0.3 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.31, and below the 200-day MA of 0.32, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$276.00M	6.62	5.64%	5.22%	-16.27%	-36.15%
0040	69 Neutral	HK$631.74M	15.63	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$306.06M	16.21	1.03%	―	38.86%	―
0894	54 Neutral	HK$373.87M	39.20	0.63%	0.63%	5.72%	-57.39%
0532	48 Neutral	HK$237.22M	-2.00	-8.12%	―	6.32%	28.39%
2363	43 Neutral	HK$70.46M	21.84	―	―	53.37%	-75.77%

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.