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Changmao Biochemical Engineering Co. Ltd. Class H (HK:0954)
:0954

Changmao Biochemical Engineering Co. Ltd. Class H (0954) AI Stock Analysis

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HK

Changmao Biochemical Engineering Co. Ltd. Class H

(Berlin:0954)

Rating:46Neutral
Price Target:
HK$0.50
▲(72.41%Upside)
The overall stock score for Changmao Biochemical Engineering Co. Ltd. is primarily impacted by its poor financial performance, characterized by declining revenues and negative profit margins. The technical analysis suggests a neutral market outlook, while the valuation score reflects the company's unprofitability. These factors collectively result in a below-average stock score.

Changmao Biochemical Engineering Co. Ltd. Class H (0954) vs. iShares MSCI Hong Kong ETF (EWH)

Changmao Biochemical Engineering Co. Ltd. Class H Business Overview & Revenue Model

Company DescriptionChangmao Biochemical Engineering Co. Ltd. Class H (0954) is a China-based company primarily engaged in the production and sale of organic acids. The company operates in the biochemical industry, with a focus on the development and manufacturing of various types of dicarboxylic acids and their derivatives. Its core products include fumaric acid, maleic anhydride, and other organic acid products, which are used in food, beverage, chemical, and pharmaceutical industries.
How the Company Makes MoneyChangmao Biochemical Engineering Co. Ltd. generates revenue through the sale of its organic acid products. The company's primary revenue streams come from supplying its products to various industrial sectors, including food and beverage, where these acids are used as acidulants, preservatives, and flavor enhancers. Additionally, its products serve the chemical and pharmaceutical industries as intermediates and additives. The company's earnings are influenced by its ability to maintain efficient production processes, competitive pricing, and strong distribution networks. Strategic partnerships with distributors and manufacturers in different regions also play a critical role in expanding its market reach and boosting sales.

Changmao Biochemical Engineering Co. Ltd. Class H Financial Statement Overview

Summary
Changmao Biochemical Engineering Co. Ltd. is facing significant financial challenges, including declining revenues, negative profit margins, and increasing leverage. The company has been unable to generate positive free cash flow and has struggled with profitability, indicating a need for improved operational efficiency and cash flow management.
Income Statement
30
Negative
The company has been experiencing declining revenue with a noticeable drop from 2023 to 2024. The gross profit margin has shrunk significantly over the years, and both EBIT and EBITDA margins are negative, indicating inefficiency in operations. The net profit margin is also negative, highlighting ongoing losses, which raises concerns about the company's profitability.
Balance Sheet
45
Neutral
While the company maintains a reasonable equity ratio, the debt-to-equity ratio has increased over the years, suggesting rising leverage. The return on equity has also turned negative, reflecting unprofitable operations. Despite these challenges, the company still holds a substantial amount of stockholders' equity.
Cash Flow
25
Negative
The company has struggled with generating positive free cash flow, and operating cash flow has been inconsistent. The free cash flow growth rate has been negative, and both operating and free cash flow to net income ratios are unfavorable, indicating poor cash generation relative to earnings.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue584.79M637.08M730.03M547.98M444.11M
Gross Profit16.78M25.81M180.83M38.68M103.04M
EBITDA-17.71M-8.25M122.52M115.58M50.00M
Net Income-68.24M-86.06M81.42M58.32M16.83M
Balance Sheet
Total Assets1.25B1.24B1.21B956.51M847.33M
Cash, Cash Equivalents and Short-Term Investments74.56M96.56M63.63M58.63M134.34M
Total Debt536.13M494.64M291.50M89.25M805.00K
Total Liabilities666.42M590.91M427.86M258.99M197.41M
Stockholders Equity583.45M651.69M778.53M697.10M649.38M
Cash Flow
Free Cash Flow-96.28M-141.52M-203.89M-259.14M-20.76M
Operating Cash Flow-32.32M-2.35M19.63M-6.94M58.91M
Investing Cash Flow-32.53M-122.11M-220.71M-144.62M7.15M
Financing Cash Flow33.13M153.84M199.55M76.75M-49.76M

Changmao Biochemical Engineering Co. Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.29
Price Trends
50DMA
0.29
Positive
100DMA
0.33
Negative
200DMA
0.38
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
48.93
Neutral
STOCH
40.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0954, the sentiment is Negative. The current price of 0.29 is below the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.29, and below the 200-day MA of 0.38, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0954.

Changmao Biochemical Engineering Co. Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$3.22B6.678.22%7.69%-2.46%20.39%
69
Neutral
HK$1.06B11.514.75%2.12%-13.75%-56.14%
58
Neutral
HK$16.77B4.60-5.52%5.25%-3.57%-61.41%
54
Neutral
HK$1.05B14.462.75%3.33%-11.89%-69.45%
49
Neutral
HK$2.03B3.4311.49%47.32%492.76%
46
Neutral
HK$153.61M-10.94%-9.85%20.22%
36
Underperform
HK$150.70M-76.72%-12.18%-222.34%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0954
Changmao Biochemical Engineering Co. Ltd. Class H
0.29
-0.14
-31.76%
HK:0746
Lee & Man Chemical Co. Ltd.
3.94
0.46
13.22%
HK:2198
China Sanjiang Fine Chemicals Co., Ltd.
1.74
0.11
6.75%
HK:1702
Dongguang Chemical Ltd.
1.70
-0.16
-8.60%
HK:0827
Ko Yo Chemical (Group) Limited
0.02
-0.06
-75.00%
HK:0609
Tiande Chemical Holdings Limited
1.20
0.11
10.09%

Changmao Biochemical Engineering Co. Ltd. Class H Corporate Events

Changmao Biochemical Engineering Announces Major Sale and Leaseback Transaction
Jun 30, 2025

Changmao Biochemical Engineering Company Limited, through its subsidiary Changmao Dalian, has entered into a Sale and Leaseback Agreement with a lessor, transferring leased assets for approximately RMB50,000,000 and leasing them back for 48 months at a total rent of approximately RMB57,531,114. This transaction is classified as a major transaction under the Listing Rules, and it has received approval from a closely allied group of shareholders holding over 50% of the voting rights, bypassing the need for a general meeting.

Changmao Biochemical Announces Board and Committee Composition
Jun 30, 2025

Changmao Biochemical Engineering Co. Ltd. has announced the composition of its board of directors and supervisory committee, detailing the roles and functions of each member. This announcement, effective from July 1, 2025, outlines the membership of the nomination, remuneration and appraisal, and audit committees, indicating a structured governance approach that may impact the company’s strategic direction and stakeholder engagement.

Changmao Biochemical Engineering Announces Board and Supervisory Committee Composition
Jun 17, 2025

Changmao Biochemical Engineering Co. Ltd. has announced the composition of its board of directors and supervisory committee, effective June 18, 2025. This announcement outlines the roles and functions of each member, which includes executive, non-executive, and independent non-executive directors, as well as supervisors nominated by shareholders and employees. The release provides insights into the company’s governance structure, potentially impacting its strategic direction and stakeholder confidence.

Changmao Biochemical Engineering Enhances Governance with New Nomination Committee Rules
Jun 17, 2025

Changmao Biochemical Engineering Company Limited has established the ‘Implementation Rules of the Nomination Committee of the Board of Directors’ to standardize the appointment procedures for management personnel and enhance the board’s composition. This move aims to improve corporate governance and align the board’s skills with the company’s strategic goals, potentially impacting the company’s operational efficiency and stakeholder confidence.

Changmao Biochemical Engineering Co. Ltd. Unanimously Approves AGM Resolutions
May 28, 2025

Changmao Biochemical Engineering Co. Ltd. held its Annual General Meeting on May 28, 2025, where all proposed resolutions were unanimously approved by shareholders. Key decisions included the approval of the company’s audited financial statements for the year ending December 31, 2024, the resignation of two non-executive directors, and the election of new directors for the ninth session of the board, effective from June 18, 2025. These resolutions reflect the company’s strategic direction and governance adjustments, potentially impacting its operational focus and leadership structure.

Changmao Biochemical Engineering Announces AGM and Key Resolutions
Apr 23, 2025

Changmao Biochemical Engineering Co. Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for May 28, 2025, in Hong Kong. Key agenda items include the approval of the 2024 financial statements, the resignation and election of directors and supervisors, and the re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, a special resolution will be considered to grant the board a mandate to issue new shares, which could impact the company’s capital structure and shareholder value.

Changmao Biochemical Announces Director Resignations Due to Retirement
Apr 23, 2025

Changmao Biochemical Engineering Co. Ltd. announced the proposed resignation of two non-executive directors, Mr. Zeng Xian Biao and Mr. Wang Jian Ping, due to their retirement. This change in the board’s composition is not expected to affect the company’s operations or strategic direction, as all other aspects of the previous announcement remain unchanged.

Changmao Biochemical Announces Board Changes to Drive Future Growth
Apr 23, 2025

Changmao Biochemical Engineering Co. Ltd. has announced the proposed resignation of two non-executive directors, Mr. Zeng Xian Biao and Mr. Wang Jian Ping, due to personal reasons, effective from June 18, 2025. The company expresses gratitude for their contributions and plans to appoint Ms. Rui Xiao Qian as an executive director and Mr. Lin Ze Yu as a non-executive director, pending approval at the upcoming annual general meeting. These changes are part of the company’s strategy to enhance board diversity and leverage the new directors’ expertise to drive future growth.

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.Date of analysis: Jul 04, 2025