CNT Group Limited (0701) AI Stock Analysis

• Market Cap: HK$388.35M
• Dividend Yield: N/A
• Average Volume (3M): 232.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -30.21%
• EPS Growth: -12.78%
• Country: HK
• Employees: 459
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Chemicals - Specialty
• EPS (TTM): -0.03
• Shares Outstanding: 1,903,685,700
• 10 Day Avg. Volume: 125,800
• 30 Day Avg. Volume: 232,266
• PEG Ratio: -3.04
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -14.88
• 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: ―

The overall stock score reflects significant financial and valuation challenges faced by CNT Group Limited. The company's financial performance is weak, with ongoing losses and cash flow issues. Technical indicators suggest mixed short-term signals, while the valuation remains unattractive due to negative profitability metrics. The absence of earnings call and corporate events data leaves some uncertainty about future prospects. Overall, the stock is rated at a cautious level, indicating a need for improvements in financial performance and profitability.

CNT Group Limited Business Overview & Revenue Model

Company Description

CNT Group Limited, an investment holding company, manufactures and sells paint and coating products in Hong Kong and Mainland China. It operates through four segments: Paint and Coating Products, Property Investment, Iron and Steel Trading, and Hotel Business. The company invests in residential, commercial, hotel, serviced apartment, and industrial properties; develops and sells properties; and provides fund management, management, and consulting services. It is also involved in the trading of iron and steel products, and related investment activities; securities trading; and hotel business. CNT Group Limited was incorporated in 1991 and is based in Wanchai, Hong Kong.

How the Company Makes Money

CNT Group Limited generates revenue primarily through the sale of its paint and coating products, which constitute the core of its business operations. The company operates manufacturing facilities to produce a wide range of paints for industrial, commercial, and residential use. Additional revenue is derived from property investments, where the company leases out commercial properties, providing a steady income stream. Another significant revenue stream is the trading of iron and steel products, which contributes to its earnings by leveraging existing market demands and strategic trading partnerships. These diversified operations enable CNT Group to maintain financial stability and capitalize on growth opportunities in various sectors.

CNT Group Limited Financial Statement Overview

Summary

CNT Group Limited is facing significant financial challenges, marked by declining revenues, ongoing losses, and cash flow issues. While the balance sheet shows some strength due to a strong equity base, the negative profitability and cash flow trends highlight potential risks. The company needs to address operational inefficiencies and improve its revenue trajectory to enhance financial health.

Income Statement

The company has faced declining revenue over the years, with a sharp decrease in 2024. Gross profit margins have been relatively stable but low, and the net profit margin is negative, indicating consistent losses. EBIT and EBITDA margins are also negative, reflecting operational challenges and inefficiencies.

Balance Sheet

Despite high levels of debt, the debt-to-equity ratio remains manageable due to significant stockholders' equity. The equity ratio indicates a strong reliance on equity financing, which is a positive sign of financial stability. However, the return on equity (ROE) is negative due to ongoing losses.

Cash Flow

The company's cash flow situation is concerning, with operating cash flow dropping to zero in 2024. Historical free cash flow growth has been erratic, and the lack of operating cash flow in the most recent year raises concerns about the company's ability to sustain operations without external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	345.90M	495.65M	665.59M	885.47M	781.51M
Gross Profit	144.56M	174.58M	156.16M	200.59M	247.69M
EBITDA	-14.35M	-46.88M	-76.36M	4.04M	-56.68M
Net Income	-77.38M	-68.58M	-94.08M	-20.63M	-94.24M
Balance Sheet
Total Assets	1.72B	1.96B	2.30B	2.44B	2.40B
Cash, Cash Equivalents and Short-Term Investments	286.74M	260.39M	429.48M	503.89M	504.70M
Total Debt	144.02M	178.90M	297.90M	272.73M	274.47M
Total Liabilities	393.79M	511.37M	714.33M	759.28M	663.08M
Stockholders Equity	1.22B	1.32B	1.45B	1.55B	1.58B
Cash Flow
Free Cash Flow	0.00	92.58M	-40.26M	30.95M	4.51M
Operating Cash Flow	-8.57M	96.58M	-17.10M	49.27M	31.23M
Investing Cash Flow	0.00	-85.78M	-18.40M	-9.50M	-18.95M
Financing Cash Flow	0.00	-160.25M	-21.31M	-45.08M	9.37M

CNT Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0701, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.21, and below the 200-day MA of 0.24, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 29.50 is Positive, neither overbought nor oversold. The STOCH value of 17.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0701.

CNT Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1950	71 Outperform	HK$201.60M	6.42	4.78%	―	-2.38%	-54.44%
2116	68 Neutral	HK$235.20M	15.51	6.12%	2.04%	-4.13%	-35.11%
Sector *	63 Neutral	$16.78B	10.88	-7.08%	3.04%	1.73%	-25.15%
1047	56 Neutral	HK$119.99M	―	-1.32%	―	12.01%	82.32%
0301	56 Neutral	HK$625.71M	―	-8.95%	―	-3.09%	-480.17%
0701	52 Neutral	HK$388.35M	―	-6.09%	―	-30.21%	-12.78%
1932	41 Neutral	HK$152.00M	―	-11.66%	―	-31.49%	28.61%

CNT Group Limited Corporate Events

CNT Group Limited Announces Annual General Meeting Agenda

CNT Group Limited has announced its upcoming annual general meeting, which will take place on June 5, 2025, in Hong Kong. The meeting will cover several key agenda items, including the consideration of audited financial statements, re-election of directors, re-appointment of auditors, and a resolution to authorize the board to allot and issue additional shares. This meeting is significant for stakeholders as it addresses important governance and operational decisions that could impact the company’s strategic direction and shareholder value.

CNT Group Limited Reports Increased Losses Amid Revenue Decline

CNT Group Limited reported a significant decline in its financial performance for the year ended December 31, 2024, with revenue dropping by 30.2% to HK$345.9 million and a gross profit decrease of 17.2%. The company experienced a loss of HK$89.4 million, up from the previous year’s loss of HK$85.2 million, indicating a challenging year. The loss attributable to shareholders increased by 12.8%, while the net asset value per share fell by 7.9%. These results highlight the company’s struggles in maintaining profitability and may impact its market positioning and stakeholder confidence.

CNT Group Limited Schedules Board Meeting to Approve Annual Results and Dividend

CNT Group Limited has announced that its board of directors will meet on March 27, 2025, to approve the annual results for the year ending December 31, 2024, and to consider the payment of a final dividend. This meeting is significant as it will determine the company’s financial performance and potential shareholder returns, impacting its operations and stakeholder interests.