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

• Market Cap: HK$378.69M
• Dividend Yield: N/A
• Average Volume (3M): 5.19M
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.20
• 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: -0.11
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 8.70
• 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: 68 Neutral
• Price Target: HK$0.42 ▲(40.00% Upside)

The score is driven primarily by improving fundamentals and a very strong, low-debt balance sheet alongside robust cash flow generation. Technicals are constructive with bullish trend and momentum, though near-overbought signals raise short-term pullback risk. Valuation is a modest drag due to a P/E around 21 and no dividend yield data.

Positive Factors

Balance Sheet Strength

Exceptionally low leverage and a very high equity ratio give the company durable financial flexibility. This reduces refinancing and interest risk, supports opportunistic M&A or capex, and provides resilience through industry downturns without relying on external funding.

Cash Generation

Substantial FCF growth and strong operating-cash-to-net-income conversion mean the business converts earnings into cash efficiently. That supports sustained investment in product development, maintenance capex, and working capital without material new external financing.

Revenue and Margin Recovery

Solid top-line growth with materially improved gross margins indicates recovering demand and better cost control. If sustained, this structural progress can enhance operating leverage, fund reinvestment, and support margin expansion even as the company scales.

Negative Factors

Low Net Profitability

Despite improvements, modest net margins and very low ROE mean shareholder returns remain weak. Persistently low profitability limits retained-earnings funding for growth and raises questions about pricing power, cost structure, or downstream value capture long term.

No Dividend Income

The absence of a dividend reduces steady cash return to investors and makes total return fully reliant on capital appreciation. Combined with low ROE, this raises concerns about capital allocation priorities and long-term investor appeal for income-focused holders.

Cyclicality of End Markets

Concentration in electronics, automotive and machinery exposes revenues to capital-spending cycles and OEM demand swings. These structural cyclical patterns can lead to volatile order flows and utilization, creating durable downside risk during industry slowdowns.

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

Strong balance sheet with minimal leverage (debt-to-equity ~0.00008) and high equity ratio (94.73%), plus improved cash generation (free cash flow growth 48.29%, OCF/NI 2.10). Revenue growth is solid (14.21%) and margins have improved, but net profit margin remains modest (9.01%) and ROE is still low (1.01%).

Income Statement

The company has shown a positive revenue growth rate of 14.21% in the latest year, indicating a strong recovery from previous years. Gross profit margin improved significantly to 33.82%, demonstrating better cost management. However, the net profit margin is relatively low at 9.01%, suggesting that operational expenses are still impacting profitability. The EBIT and EBITDA margins have turned positive, reflecting improved operational efficiency.

Balance Sheet

The balance sheet is strong with a very low debt-to-equity ratio of 0.00008, indicating minimal leverage and financial risk. The equity ratio is high at 94.73%, showing a solid equity base. Return on equity has improved to 1.01%, although still modest, it marks a positive turnaround from previous negative returns.

Cash Flow

Cash flow has improved significantly with a free cash flow growth rate of 48.29%. The operating cash flow to net income ratio is 2.10, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.99, suggesting efficient cash flow management. These metrics highlight a robust cash flow position, supporting future growth and stability.

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: 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 0.3 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.33, and below the 200-day MA of 0.33, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.91 is Neutral, neither overbought nor oversold. The STOCH value of 28.18 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	77 Outperform	HK$268.80M	6.44	5.64%	5.22%	-16.27%	-36.15%
0040	69 Neutral	HK$649.79M	16.07	3.78%	3.73%	2.10%	―
0591	68 Neutral	HK$378.69M	19.23	1.03%	―	38.86%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0894	54 Neutral	HK$397.84M	41.71	0.63%	0.63%	5.72%	-57.39%
0532	48 Neutral	HK$215.32M	-1.84	-8.12%	―	6.32%	28.39%
2363	44 Neutral	HK$65.35M	20.25	―	―	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.