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Global Bio-chem Technology Group Co. Ltd. (HK:0809)
:0809

Global Bio-chem Technology Group Co. Ltd. (0809) AI Stock Analysis

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HK

Global Bio-chem Technology Group Co. Ltd.

(0809)

Rating:59Neutral
Price Target:
HK$0.00
▼(-100.00%Downside)
The overall stock score is primarily driven by financial instability with negative equity and high leverage, posing significant risks. Positive technical analysis offers some support, indicating bullish momentum. Valuation appears reasonable with a low P/E ratio, but the lack of dividends may deter some investors. Overall, while there are signs of improvement, the financial distress remains a major concern.

Global Bio-chem Technology Group Co. Ltd. (0809) vs. iShares MSCI Hong Kong ETF (EWH)

Global Bio-chem Technology Group Co. Ltd. Business Overview & Revenue Model

Company DescriptionGlobal Bio-chem Technology Group Company Limited, an investment holding company, manufactures and sells corn refined products and corn-based biochemical products in the People's Republic of China, rest of Asia, the Americas, and internationally. It operates through four segments: Upstream Products, Amino Acids, Corn Sweeteners, and Polyol Chemicals. The company offers corn refined products, including corn oil, corn steep liquor, corn starch, waxy corn starch, corn gluten meal, feed pellets, and corn germ cake. It also provides downstream corn based biochemical products, such as amino acids comprising lysine, protein lysine, threonine, and glutamic acid; corn sweeteners, which include high fructose corn syrup, maltodextrin, high maltose syrup, maltose syrup, sorbitol, glucose, and crystallized glucose; modified starches; and chemicals comprising ethylene, propylene, and butylene glycols, as well as resins. In addition, the company offers anti-freeze products, hydrogen, and ammonia. Its products are used in various applications, such as feed production, food and beverage, cosmetics, textiles, pharmaceuticals, chemical industries, etc. The company was founded in 1994 and is headquartered in Hung Hom, Hong Kong.
How the Company Makes MoneyGlobal Bio-chem Technology Group Co. Ltd. generates revenue through the sale of its corn-based biochemical products. The company's key revenue streams include the production and distribution of amino acids like lysine and threonine, which are essential additives in animal feed to enhance growth and productivity. Additionally, the company sells corn sweeteners and modified starch products to the food and beverage industry, where they are used as ingredients in various consumables. Partnerships with agricultural suppliers and industrial manufacturers, along with a robust supply chain network, contribute significantly to the company's earnings by ensuring a steady supply of raw materials and distribution of finished products. The company's strategic focus on innovation and expanding its product offerings in the biochemical sector also plays a crucial role in sustaining and growing its revenue.

Global Bio-chem Technology Group Co. Ltd. Financial Statement Overview

Summary
The company's financial performance is weak, with a combination of negative stockholders' equity, high leverage, and inconsistent cash flows. Despite recent improvements in revenue and operating cash flow, the negative EBIT and overall financial distress significantly impact the score.
Income Statement
40
Negative
The company shows significant volatility in revenue, with a recent increase from 2022 to 2023, but overall negative EBIT and net income suggest underlying profitability issues. The negative EBIT margin underscores operational challenges, while EBITDA margin turning positive in 2024 reflects some improvement in operating efficiency.
Balance Sheet
20
Very Negative
The company faces severe financial instability with negative stockholders' equity reflecting balance sheet insolvency, and a high debt-to-equity ratio indicating excessive leverage. The negative equity ratio further highlights financial distress, posing considerable risks.
Cash Flow
30
Negative
Cash flow from operations has improved from negative to positive in 2024, indicating better cash management. However, the free cash flow still faces challenges due to historical negative trends, and the operating cash flow to net income ratio is volatile, highlighting cash flow unpredictability.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.00B1.37B372.28M746.55M848.87M
Gross Profit
218.68M43.64M34.60M48.35M74.10M
EBIT
-139.74M-318.17M-849.40M-973.85M-964.93M
EBITDA
16.85M4.69B-469.06M785.63M-1.39B
Net Income Common Stockholders
769.60M4.22B-1.52B-435.39M-2.43B
Balance SheetCash, Cash Equivalents and Short-Term Investments
149.43M315.41M41.77M21.81M153.32M
Total Assets
4.54B5.21B5.85B6.48B7.60B
Total Debt
3.69B5.45B8.15B8.44B8.96B
Net Debt
3.61B5.36B8.11B8.42B8.81B
Total Liabilities
6.50B9.25B13.64B13.18B13.62B
Stockholders Equity
-1.95B-4.04B-7.54B-6.52B-5.86B
Cash FlowFree Cash Flow
76.04M-94.24M-94.19M-501.02M-43.02M
Operating Cash Flow
76.04M-50.46M-88.01M-475.21M-26.19M
Investing Cash Flow
-535.00K-14.37M-413.00K392.59M120.09M
Financing Cash Flow
-76.06M165.81M109.75M-48.66M-25.87M

Global Bio-chem Technology Group Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.08
Price Trends
50DMA
0.07
Positive
100DMA
0.08
Positive
200DMA
0.08
Positive
Market Momentum
MACD
<0.01
Negative
RSI
60.12
Neutral
STOCH
92.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0809, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.12 is Neutral, neither overbought nor oversold. The STOCH value of 92.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0809.

Global Bio-chem Technology Group Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
HK$659.15M0.89
45.65%-81.70%
51
Neutral
$2.04B-1.23-21.09%3.96%2.90%-30.45%
$1.03B20.91-0.91%1.10%
$3.55B12.178.95%4.36%
$5.25B12.415.64%1.68%
73
Outperform
HK$1.88B3.0718.33%4.80%-9.95%67.56%
41
Neutral
HK$47.98M-14.71%23.76%5.26%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0809
Global Bio-chem Technology Group Co. Ltd.
0.08
>-0.01
-11.11%
BTSDF
Health and Happiness (H&H) International Holdings
1.16
-0.06
-4.92%
SHWGF
Shandong Weigao Group Medical Polymer Co
0.77
0.23
42.59%
XJNGF
Xinjiang Goldwind Science & Technology Co
0.91
0.45
97.83%
HK:2348
Dawnrays Pharmaceutical Holdings Ltd.
1.25
0.16
14.68%
HK:8218
Echo International Holdings Group Ltd.
0.07
-0.09
-56.25%

Global Bio-chem Technology Group Co. Ltd. Corporate Events

Global Bio-chem Initiates Debt Restructuring to Strengthen Financial Position
Jun 9, 2025

Global Bio-chem Technology Group Co. Ltd. has announced a Suppliers Debt Restructuring Arrangement to address overdue payables amounting to RMB461.1 million, involving over 130 independent suppliers. This arrangement includes a debt-to-equity conversion and an equity swap, ultimately allowing suppliers to convert their debt into equity in a subsidiary, Century Dacheng, and then into shares of the company. This strategic move is expected to result in a net gain of no less than HK$190.0 million for the company, improving its financial standing and potentially enhancing shareholder value.

Global Bio-chem Relaunches Boiler Refurbishment Project via Public Tender
May 23, 2025

Global Bio-chem Technology Group Co. Ltd. has announced the relaunch of the Boiler Refurbishment Project at Changchun Dahe, which involves entering into an EPC Contract through a public tender process. The tender, which commenced on May 26, 2025, will determine the contractor responsible for engineering design, procurement, and construction works. The project is significant as it may constitute a discloseable transaction under the Listing Rules, potentially impacting the company’s operations and market positioning.

Global Bio-chem Partners with Hefei Hechen to Boost Synthetic Biology
May 23, 2025

Global Bio-chem Technology Group Co. Ltd. has entered into a strategic cooperation framework agreement with Hefei Hechen Bio-tech Company Limited to establish a synthetic biology pilot testing platform at its Xinglongshan production site. This collaboration aims to leverage both companies’ strengths in synthetic biology to support the development of bio-manufacturing industries in Jilin Province. The initiative marks a significant step towards resuming operations at the Xinglongshan site, which is expected to improve operational efficiency and strengthen the company’s working capital.

Global Bio-chem Technology’s AGM Resolutions Approved
May 9, 2025

Global Bio-chem Technology Group Co. Ltd. announced that all resolutions proposed at its Annual General Meeting were approved by shareholders. The resolutions included the re-election of directors, approval of financial statements, and granting of mandates for share dealings, indicating strong shareholder support and potentially enhancing the company’s governance and operational flexibility.

Global Bio-chem Technology Announces 2025 AGM and Key Resolutions
Apr 15, 2025

Global Bio-chem Technology Group Co. Ltd. has announced its upcoming annual general meeting scheduled for May 9, 2025, in Hong Kong. Key agenda items include the approval of the 2024 financial statements, re-election of directors, and authorization for the board to manage director and auditor remunerations. Additionally, the company seeks approval to allot and issue new shares, which could impact its capital structure and shareholder value.

Global Bio-chem Technology Reports 2024 Financial Results
Mar 30, 2025

Global Bio-chem Technology Group Co. Ltd. announced its financial results for the year ending December 31, 2024, reporting a significant increase in revenue from HK$1,373,938,000 in 2023 to HK$2,001,095,000 in 2024. Despite a rise in gross profit and other income, the company experienced a decrease in total comprehensive income due to substantial other expenses and finance costs, resulting in a total comprehensive income of HK$358,324,000, down from HK$3,508,029,000 the previous year.

Global Bio-chem Schedules Board Meeting to Approve Annual Results
Mar 18, 2025

Global Bio-chem Technology Group Co. Ltd. has announced a board meeting scheduled for March 28, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the payment of a final dividend, which could impact stakeholders and the company’s financial outlook.

Global Bio-chem Issues Profit Warning Amid Decreased Net Gain
Mar 13, 2025

Global Bio-chem Technology Group Co. Ltd. has issued a profit warning, indicating a significant decrease in net gain for the year ending December 31, 2024, compared to the previous year. Despite an increase in revenue and gross profit, the expected net gain is lower due to the absence of a substantial one-off gain from a debt restructuring agreement in the prior year. The company has completed the disposal of eight subsidiaries, resulting in a one-off gain, but this was not enough to match the previous year’s financial performance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.