Besunyen Holdings Co. Ltd. (0926) AI Stock Analysis

• Market Cap: HK$223.03M
• Dividend Yield: 47.72%
• Average Volume (3M): 2.87K
• Price to Earnings (P/E): 14.9
• Beta (1Y): <0.01
• Revenue Growth: 7.35%
• EPS Growth: N/A
• Country: HK
• Employees: 128
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.11
• Shares Outstanding: 122,265,590
• 10 Day Avg. Volume: 825
• 30 Day Avg. Volume: 2,871
• PEG Ratio: -0.16
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 48.07
• 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: 58 Neutral
• Price Target: HK$2.50 ▼(-3.85% Downside)

Besunyen Holdings' overall score reflects a mix of moderate financial performance and technical analysis, with a strong valuation component due to a high dividend yield. The company's recent improvements in profitability and cash flow are positive, but past volatility and lack of strong market momentum suggest cautious optimism.

Positive Factors

Revenue Growth

The company has shown a positive revenue growth trend, indicating an expanding market reach and increasing demand for its products.

Balance Sheet Stability

A strong equity base and low debt-to-equity ratio suggest financial stability, providing a solid foundation for future growth.

Cash Flow Improvement

Recent improvements in cash flow generation indicate better cash management, enhancing financial flexibility and operational resilience.

Negative Factors

Declining Revenue

The historical decline in revenue raises concerns about the company's ability to sustain growth and maintain competitive positioning.

Profitability Challenges

Ongoing profitability issues could hinder reinvestment in the business and affect long-term value creation.

Asset Management Risks

A decrease in total assets may indicate challenges in asset management, potentially impacting growth and operational efficiency.

Besunyen Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

Besunyen Holdings Company Limited engages in the research and development, production, and sale of therapeutic tea products and pharmaceuticals in the People's Republic of China. It offers its therapeutic tea products under the Besunyen brand; herbal tea; and Besunyen Detox and Besunyen slimming tea. The company also provides functional teas, such as Besunyen Fit Tea; and LARLLY Orlistat weight-loss medicine, as well as develops, produces, and sells over-the-counter (OTC) medicines comprising Besunyen Orlistat weight-loss capsule. It sells its products through OTC pharmacies and the retail terminals in shopping malls and supermarkets; and distributors and sub-distributors, as well as through e-commerce platforms. The company was founded in 2000 and is based in Beijing, the People's Republic of China. Besunyen Holdings Company Limited is a subsidiary of Foreshore Holding Group Limited.

How the Company Makes Money

Besunyen generates revenue primarily through the sale of its herbal tea products. The company has established a diverse revenue model that includes direct sales to consumers through retail channels, e-commerce platforms, and partnerships with distributors. Key revenue streams come from the sales of its flagship products, which are marketed for their health benefits, particularly in weight loss and detoxification. Additionally, strategic partnerships with health and wellness retailers enhance its market reach. The company's ongoing investment in product innovation and quality control further solidifies its brand reputation, driving customer loyalty and repeat purchases.

Besunyen Holdings Co. Ltd. Financial Statement Overview

Summary

Besunyen Holdings has faced challenges with declining revenues and profitability issues in recent years. However, the balance sheet shows moderate stability with low leverage, and there are signs of improvement in 2024 with positive net income and cash flow.

Income Statement

The income statement shows a declining trend in revenue over the past years, with significant revenue drops from 2020 to 2022. The company has struggled with profitability, evident from negative EBIT and net income in recent years. However, there was a slight recovery in 2024 with positive net income, EBIT, and EBITDA, indicating a potential turnaround.

Balance Sheet

The balance sheet reflects moderate financial stability with a strong equity base, as seen in the high equity ratio. The debt-to-equity ratio is low, suggesting manageable leverage. However, total assets have decreased over time, which could imply potential risks in asset management or growth.

Cash Flow

Cash flow statements indicate fluctuations in cash flow generation with negative free cash flow in several years, but a positive trend in 2024. Operating cash flow has been erratic, affecting the overall cash position. The recent positive free cash flow could be a sign of improving cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	488.93M	484.30M	542.88M	801.34M	1.10B	1.29B
Gross Profit	329.96M	325.84M	346.22M	492.59M	698.55M	913.33M
EBITDA	40.35M	33.89M	-124.31M	-8.72M	-11.98M	84.07M
Net Income	19.39M	14.80M	-299.24M	-99.09M	-145.71M	45.48M
Balance Sheet
Total Assets	592.27M	560.69M	704.94M	1.54B	1.64B	1.85B
Cash, Cash Equivalents and Short-Term Investments	164.54M	174.70M	252.79M	437.99M	226.60M	664.12M
Total Debt	4.01M	5.68M	5.11M	194.89M	286.61M	182.39M
Total Liabilities	104.49M	85.32M	150.97M	484.73M	586.74M	642.84M
Stockholders Equity	487.78M	475.38M	553.97M	854.34M	827.52M	1.01B
Cash Flow
Free Cash Flow	24.42M	5.54M	3.19M	-16.50M	-278.19M	-48.30M
Operating Cash Flow	29.99M	10.54M	9.98M	38.11M	-145.52M	75.15M
Investing Cash Flow	54.17M	59.36M	8.39M	-35.49M	-188.35M	170.85M
Financing Cash Flow	-103.23M	-103.84M	-81.12M	12.49M	6.32M	43.14M

Besunyen Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0926, the sentiment is Positive. The current price of 2.6 is above the 20-day moving average (MA) of 2.41, above the 50-day MA of 2.45, and above the 200-day MA of 2.37, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 72.30 is Negative, neither overbought nor oversold. The STOCH value of 71.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0926.

Besunyen Holdings Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1767	71 Outperform	HK$300.00M	11.36	5.48%	0.78%	5.43%	-25.42%
1837	68 Neutral	HK$2.39B	10.73	13.72%	3.74%	11.89%	27.80%
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%
1717	59 Neutral	HK$3.49B	11.94	4.53%	2.90%	0.52%	99.51%
0926	58 Neutral	HK$223.03M	14.91	3.67%	47.72%	7.35%	―
2147	51 Neutral	HK$47.04M	-0.35	-28.48%	―	56.39%	-86.79%

Besunyen Holdings Co. Ltd. Corporate Events

Besunyen Holdings Faces Fair Value Loss, Reinforces Investment in ERX Pharmaceuticals

Besunyen Holdings Co. Ltd. announced a significant fair value loss of approximately RMB16.3 million on its investment in ERX Pharmaceuticals Inc., a clinical-stage biopharmaceutical company. This loss is attributed to a shift in the U.S. capital market environment, where funding has moved towards technology sectors, affecting traditional drug development financing. Despite this, Besunyen’s liquidity remains strong, and the company plans to participate in a capital increase to maintain its stake in ERX, which aligns with its strategic interests in weight-loss therapies. The board believes this move will help restore ERX’s value and support its long-term growth, while preserving strategic partnerships and access to shared technology.

The most recent analyst rating on (HK:0926) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Besunyen Holdings Co. Ltd. stock, see the HK:0926 Stock Forecast page.