Huscoke Holdings Limited (0704) AI Stock Analysis

• Market Cap: HK$95.10M
• Dividend Yield: N/A
• Average Volume (3M): 3.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 15
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): N/A
• Shares Outstanding: 864,515,900
• 10 Day Avg. Volume: 374,128
• 30 Day Avg. Volume: 3,087,093
• PEG Ratio: 0.05
• Price to Book (P/B): 0.03
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 33.86
• 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: 43 Neutral
• Price Target: HK$0.11 ▲(31.25% Upside)

The score is held down primarily by weak financial performance (continued losses, fragile margins, and inconsistent cash flow) and bearish technical positioning (price below key moving averages with negative MACD). Valuation provides limited support because earnings are negative and no dividend yield is available.

Positive Factors

Manageable leverage and positive equity buffer

Debt at ~25% of equity and positive shareholders' equity provide a tangible capital buffer that reduces short-term solvency risk. This structural cushion supports access to credit and gives management time to execute turnaround measures without immediate balance-sheet distress over the next several months.

Modest positive operating and free cash flow in latest year

A shift to modest positive OCF/FCF indicates improving cash generation and suggests operations can begin to fund some activities internally. If sustained, this supports reduced reliance on external financing and gives management more flexibility to stabilize operations and invest selectively over the medium term.

Sharp revenue rebound in 2025

A strong top-line rebound demonstrates the company's ability to restore sales after prior declines, which can underwrite margin recovery if costs are controlled. Durable revenue recovery would increase scale, help absorb fixed costs, and improve prospects for returning to sustained profitability.

Negative Factors

Ongoing losses and volatile financial performance

Persistent losses and earnings volatility erode retained capital and reduce the company's ability to reinvest. Over a 2–6 month horizon, continued negative earnings heighten the risk of renewed balance-sheet stress and limit strategic options for growth or restructuring without external funding.

Weak and unstable profitability metrics

Near-break-even gross margin and a deeply negative net margin indicate limited pricing power and/or persistent cost pressures. Structural margin weakness undermines return on capital and makes it harder to achieve self-sustaining profitability absent meaningful cost base changes or sustained revenue improvement.

Inconsistent cash generation; self-funding capacity limited

Intermittent OCF/FCF history and cash generation small versus losses reduce confidence in the firm's ability to self-fund recovery. This structural cash weakness increases dependence on external financing and raises the probability that balance-sheet vulnerabilities re-emerge if losses continue.

Huscoke Holdings Limited Business Overview & Revenue Model

Company Description

Huscoke Holdings Limited, an investment holding company, produces and trades in coke in the People's Republic of China. The company operates through three segments: Coke Trading, Coal-Related Ancillary, and Coke Production. The Coke Trading segment purchases and sells coke. The Coal-Related Ancillary segment is involved in the washing of raw coal into refined coal for sale and processing, as well as sale of electricity and heat, which are generated as the by-products during the washing of raw coal. The Coke Production segment processes refined coal into coke for sale, as well as sells coke by-products. It also holds assets. The company was formerly known as Huscoke Resources Holdings Limited and changed its name to Huscoke Holdings Limited in December 2018. The company was incorporated in 1991 and is based in Admiralty, Hong Kong. Huscoke Holdings Limited is a subsidiary of Shun Wang Investments Limited.

How the Company Makes Money

Huscoke Holdings Limited Financial Statement Overview

Summary

Financial quality is pressured by ongoing losses and volatile results. Income statement strength is weak (loss-making with near break-even gross margin despite a sharp 2025 revenue rebound), cash flow is inconsistent with only modest positive OCF/FCF in the latest year, while the balance sheet is currently manageable but still exposed if losses persist.

Income Statement

Profitability remains weak and volatile. The company is still loss-making in the latest annual period (2025) with a deeply negative net margin, and gross margin is near break-even, suggesting limited pricing power and/or high cost pressure. Revenue rebounded sharply in 2025 versus the prior year, but the multi-year trajectory shows large swings and prior steep declines, reducing confidence in earnings quality and stability.

Balance Sheet

Leverage looks manageable in recent years, with debt at roughly one-quarter of equity in 2023–2025 and equity remaining positive, providing a reasonable capital buffer. However, returns on equity are negative in the last two years due to losses, and the historical context includes periods of negative equity and very high leverage (2020–2021), indicating balance-sheet risk can re-emerge if losses persist.

Cash Flow

Cash generation is mixed. The latest year shows modestly positive operating cash flow and free cash flow, but cash flow has been inconsistent over time (including negative operating/free cash flow in 2021 and 2023). While free cash flow improved to roughly match the magnitude of net loss in 2025, the overall level of cash generation is small relative to reported losses and does not yet demonstrate durable self-funding capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.44M	34.23M	2.40M	27.78M	866.60M	1.18B
Gross Profit	-703.00K	45.00K	-2.95M	-72.73M	112.73M	126.89M
EBITDA	2.43M	3.15M	-24.16M	-189.18M	104.22M	-415.32M
Net Income	-15.97M	-29.48M	-35.52M	1.00B	-31.18M	-532.53M
Balance Sheet
Total Assets	1.81B	1.81B	1.83B	1.91B	2.22B	2.06B
Cash, Cash Equivalents and Short-Term Investments	1.68M	1.68M	2.45M	601.00K	7.90M	21.12M
Total Debt	219.56M	219.56M	220.96M	220.91M	742.90M	730.51M
Total Liabilities	769.71M	769.71M	741.91M	721.10M	2.38B	2.19B
Stockholders Equity	874.66M	874.66M	916.82M	1.01B	-144.23M	-111.41M
Cash Flow
Free Cash Flow	0.00	746.00K	4.25M	-1.67M	-9.18M	-793.00K
Operating Cash Flow	0.00	751.00K	4.25M	-1.61M	-8.75M	28.73M
Investing Cash Flow	0.00	-4.00K	271.00K	-182.00K	391.00K	-29.19M
Financing Cash Flow	0.00	-1.52M	-3.00M	-5.33M	-4.98M	-4.98M

Huscoke Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
8250	50 Neutral	HK$49.22M	-3.97	-4.02%	―	-8.31%	27.27%
0645	48 Neutral	HK$86.73M	-4.59	-47.78%	―	-98.92%	-76.92%
0065	45 Neutral	HK$76.12M	-1.24	-31.67%	―	-20.97%	-213.53%
0704	43 Neutral	HK$95.10M	-1.07	-3.24%	―	―	―

Huscoke Holdings Limited Corporate Events

Huscoke Holdings Appoints Wilson & Partners as New Auditor

Huscoke Holdings Limited has appointed Wilson & Partners CPA Limited as its new auditor with effect from 30 January 2026, following the retirement of Zhonghui Anda CPA Limited, with the new firm to serve until the conclusion of the next annual general meeting. The audit committee and board selected Wilson & Partners after evaluating its fee proposal, experience with listed companies, independence, market reputation, and resourcing against regulatory guidelines, concluding that the change will maintain audit quality, enhance the effectiveness of the annual audit, and serve the best interests of the company and its shareholders.

The most recent analyst rating on (HK:0704) stock is a Sell with a HK$0.12 price target. To see the full list of analyst forecasts on Huscoke Holdings Limited stock, see the HK:0704 Stock Forecast page.

Huscoke Holdings Sees Winding-Up Petition Dismissed by Hong Kong Court

Huscoke Holdings Limited has announced that a winding-up petition previously lodged against the company by China Cinda (HK) Asset Management Co., Limited has been withdrawn, following an application by the petitioner to the High Court on 12 January 2026. The High Court ordered that the petition be dismissed, removing an immediate legal threat to the company’s continuation, though the board has cautioned shareholders and potential investors to remain prudent when dealing in the company’s shares, underscoring that uncertainties may still remain around its financial and operational outlook.

Huscoke Secures Two-Year Extension of HK$200 Million Cinda Facility with New Collateral

Huscoke Holdings Limited has reached a settlement arrangement with creditor China Cinda (HK) Asset Management, under which Cinda HK agreed to extend a previously unsecured HK$200 million facility for two years, with repayment in instalments at a reduced interest rate of 5%–8% per annum. To secure the extension and resolve a winding-up petition pending before the Hong Kong High Court, Huscoke has agreed to provide new collateral, including pledges over its subsidiaries’ equity interests in Shanxi-based energy companies and a judgment receivable, converting the facility into a secured loan and potentially stabilising the group’s liquidity and capital structure while mitigating immediate insolvency pressure.

Huscoke Seeks Final Review of Hong Kong Listing Committee Decision

Huscoke Holdings Limited, a Hong Kong-listed company, has moved to challenge a regulatory decision affecting its listing status on the Main Board, though it has not disclosed further operational details or its specific business focus in this announcement. After internal discussions and consultation with professional advisers, the company has submitted a written request to the Listing Review Committee for a further and final review of a prior Listing Committee decision under Rule 13.24 of the Hong Kong Listing Rules, cautioning shareholders and potential investors that the outcome is uncertain and urging them to exercise care when dealing in its shares, with further announcements to follow on any material developments.

Huscoke Holdings Faces Trading Suspension Amid Operational Challenges

Huscoke Holdings Limited has been informed by the Listing Committee of the Stock Exchange of Hong Kong that it has failed to maintain sufficient operations and asset value as required by listing rules, resulting in the decision to suspend trading of its shares. The company’s core Coke Production Business has been suspended, and its attempts to resume operations have been hindered by funding issues and an inability to implement business plans, raising concerns about the viability and sustainability of its operations.

Huscoke Holdings Enhances Strategic Position with New Framework Agreement

Huscoke Holdings Limited is addressing a disclaimer of opinion from its former auditor by negotiating a settlement for a winding-up petition and enhancing its operational assets to generate cash flow. The company has entered a strategic framework agreement with Shanxi Jinyan Energy Technology and Shanxi Jinyan Rich Hydrogen New Materials to lease a coking plant and collaborate on production management and financing. This agreement is expected to improve Huscoke’s production capacity, cash flow, and profitability, positioning it as a key player in the coking industry and enabling entry into new markets.

Huscoke Holdings Announces Adjournment of Winding-Up Petition Hearing

Huscoke Holdings Limited has announced an update regarding a winding-up petition filed against it by China Cinda (HK) Asset Management Co., Limited. The hearing for this petition, initially scheduled for November 24, 2025, has been postponed to January 12, 2026. The company plans to keep shareholders and potential investors informed of any significant developments concerning the petition. Stakeholders are advised to exercise caution when dealing with the company’s shares.