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

• Market Cap: HK$1.07B
• Dividend Yield: N/A
• Average Volume (3M): 8.43M
• Price to Earnings (P/E): 0.8
• Beta (1Y): -0.05
• Revenue Growth: 42.14%
• EPS Growth: -81.25%
• Country: HK
• Employees: 1,567
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.02
• Shares Outstanding: 16,832,771,000
• 10 Day Avg. Volume: 3,078,640
• 30 Day Avg. Volume: 8,433,551
• PEG Ratio: -0.02
• Price to Book (P/B): -0.48
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 12.45
• 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: 44 Neutral
• Price Target: HK$0.07 ▲(13.33% Upside)

The overall stock score is primarily influenced by the company's poor financial performance, characterized by negative equity and high leverage. Technical analysis indicates bearish momentum, further weighing down the score. While the valuation suggests potential undervaluation, the financial instability and technical indicators present significant risks.

Positive Factors

Diversified revenue streams from bio-based products and partnerships

A diversified revenue model spanning bulk biodegradable plastics, bio-monomers, long-term contracts, and government/academic partnerships reduces single-customer risk and supports steadier top-line durability. Structural sustainability demand also underpins medium-term market access and contract opportunities.

Material recent revenue growth and improving margins

A sharp ~42% recent revenue growth and an EBITDA margin turning positive indicate improving commercial traction and operational leverage. These trends suggest the business can scale core operations and potentially translate top-line gains into sustainable operating improvements over the next several quarters.

Operating cash flow moved from negative to positive

The shift to positive operating cash flow reflects tangible improvement in cash generation and working capital management, enhancing near-term liquidity. Sustained positive operating cash flow can reduce external financing needs and support reinvestment if the improvement proves persistent.

Negative Factors

Negative stockholders' equity and high leverage

Negative equity and elevated leverage indicate balance-sheet insolvency and constrain financial flexibility. This structural weakness raises refinancing and covenant risks, limits the firm's ability to fund capital projects internally, and increases sensitivity to adverse cash flow swings over the medium term.

Persistent negative EBIT and net income

Continued negative EBIT and net losses show core profitability problems that impair retained earnings and reinvestment capacity. Even with EBITDA improvement, persistent operating losses imply structural cost or pricing issues that must be resolved for durable, self-funded growth.

Volatile cash flows and weak free cash flow

Historical negative and volatile cash flows hinder reliable planning and force reliance on external financing. Weak free cash flow, combined with negative equity and leverage, elevates refinancing risk and may restrict investment in capacity or R&D that would support long-term competitiveness.

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

Company Description

Global 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 Money

Global Bio-chem Technology Group Co. Ltd. generates revenue through the sale of its bio-based products and chemicals to various industrial sectors. The company has established a diversified revenue model that includes direct sales of its core products, long-term contracts with key customers, and partnerships with other firms in the bio-chemicals and materials industry. Significant revenue streams come from bulk sales of biodegradable plastics and chemicals, which have seen increasing demand due to the global shift towards sustainability. Additionally, collaborations with research institutions and participation in government initiatives for green technology further enhance its revenue potential.

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

Summary

The company exhibits major financial instability, with negative equity, high leverage, and inconsistent cash flows. Despite recent improvements in revenue and operating cash flow, the company remains at risk due to historical losses and financial distress, demanding strategic restructuring and operational efficiency improvements.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.29B	2.00B	1.37B	12.71M	746.55M	848.87M
Gross Profit	313.85M	218.68M	43.64M	-263.37M	48.35M	74.10M
EBITDA	104.98M	16.85M	4.69B	-469.06M	785.63M	-1.39B
Net Income	772.61M	769.60M	4.22B	-1.44B	-400.80M	-2.43B
Balance Sheet
Total Assets	4.69B	4.54B	5.21B	5.85B	6.48B	7.60B
Cash, Cash Equivalents and Short-Term Investments	221.55M	85.47M	315.41M	41.77M	109.13M	153.32M
Total Debt	3.60B	3.69B	5.45B	8.91B	8.44B	8.96B
Total Liabilities	6.89B	6.50B	9.25B	13.64B	13.18B	13.62B
Stockholders Equity	-2.21B	-1.95B	-4.04B	-7.54B	-6.52B	-5.86B
Cash Flow
Free Cash Flow	64.48M	76.04M	-94.24M	-94.19M	-501.02M	-43.02M
Operating Cash Flow	67.68M	76.04M	-50.46M	-88.01M	-475.21M	-26.19M
Investing Cash Flow	-3.74M	-535.00K	-14.37M	-413.00K	392.59M	120.09M
Financing Cash Flow	29.89M	-76.06M	112.62M	109.75M	-48.66M	-25.87M

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

• Technical Analysis Sentiment: Neutral
• Last Price: 0.06
• 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:0809, the sentiment is Neutral. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.07, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.48 is Neutral, neither overbought nor oversold. The STOCH value of 75.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0809.

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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2317	72 Outperform	HK$1.01B	8.42	5.08%	10.44%	-1.19%	-9.05%
1767	71 Outperform	HK$300.00M	11.36	5.48%	0.78%	5.43%	-25.42%
3838	63 Neutral	HK$1.09B	2.41	10.38%	5.38%	-6.58%	16.23%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0829	54 Neutral	HK$872.23M	-36.30	-0.99%	15.38%	-4.42%	-157.03%
2147	51 Neutral	HK$42.00M	-0.31	-28.48%	―	56.39%	-86.79%
0809	44 Neutral	HK$1.07B	0.80	―	―	42.14%	-81.25%

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

Global Bio-chem Revises Corn Pricing Mechanism Under Nongfa Supply Deal

Global Bio-chem Technology Group Company Limited has signed a supplemental agreement with Jilin Agricultural Development Group (Nongfa) to update the pricing mechanism for corn kernels supplied under their existing master supply arrangement, which runs until the end of 2026. Following the discontinuation of corn price data on China Corn Network, the company will now cap the unit price of corn kernels at the higher of the average transaction price on the Dalian Commodity Exchange and the highest corn procurement price in Jilin Province as quoted by independent platform Mysteel, with alternative reputable sources allowed if these websites are unavailable. Other terms and annual caps of the master supply agreement remain unchanged, and the board, including independent directors, views the revised pricing framework as fair, reasonable and in the best interests of shareholders, helping maintain transparent, market-based input costs for the group’s corn-dependent production operations.

The most recent analyst rating on (HK:0809) stock is a Hold with a HK$0.08 price target. To see the full list of analyst forecasts on Global Bio-chem Technology Group Co. Ltd. stock, see the HK:0809 Stock Forecast page.

Global Bio-chem Elevates COO Wang Guicheng to General Manager and De Facto CEO

Global Bio-chem Technology Group has re-designated its chief operating officer, Mr. Wang Guicheng, as general manager with effect from 18 December 2025, as part of a broader human resources restructuring aimed at supporting the group’s future business development. Under the new role, Mr. Wang will continue to oversee the group’s operational management and product development while also assuming the functions of chief executive, leveraging his more than 35 years of agricultural industry experience and long-standing involvement in the company’s production and operations. His new position is governed by a one-year renewable employment contract under which he will receive no base salary but may be granted discretionary bonuses, while his existing terms as an executive director remain unchanged, signaling a governance and leadership consolidation rather than a shift in strategic direction.

The most recent analyst rating on (HK:0809) stock is a Hold with a HK$0.08 price target. To see the full list of analyst forecasts on Global Bio-chem Technology Group Co. Ltd. stock, see the HK:0809 Stock Forecast page.

Global Bio-chem Updates Nomination Committee Terms to Strengthen Governance and Diversity

Global Bio-chem Technology Group Company Limited has updated the terms of reference for its Board Nomination Committee, effective from 1 April 2012 and amended on 30 August 2013 and 18 December 2025. The revised document sets out the committee’s constitution, membership structure and governance arrangements, requiring at least three directors as members, a majority of whom must be independent non-executive directors, with at least one member of a different gender, and designating either the Board chairman or an independent non-executive director as committee chair, while the company secretary serves as committee secretary. These changes reinforce the company’s corporate governance framework, strengthen independence and diversity in board nominations, and signal ongoing efforts to align with evolving regulatory and best-practice standards, which may enhance oversight and confidence among investors and other stakeholders.

The most recent analyst rating on (HK:0809) stock is a Hold with a HK$0.08 price target. To see the full list of analyst forecasts on Global Bio-chem Technology Group Co. Ltd. stock, see the HK:0809 Stock Forecast page.