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

• Market Cap: HK$153.61M
• Dividend Yield: N/A
• Average Volume (3M): 116.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: -9.85%
• EPS Growth: 20.22%
• Country: HK
• Employees: 571
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals
• EPS (TTM): -0.14
• Shares Outstanding: 183,700,000
• 10 Day Avg. Volume: 215,600
• 30 Day Avg. Volume: 116,000
• PEG Ratio: -0.06
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.88
• 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

• Rating: 46 Neutral
• 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 Business Overview & Revenue Model

Company Description

Changmao 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 Money

Changmao 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	584.79M	637.08M	730.03M	547.98M	444.11M
Gross Profit	16.78M	25.81M	180.83M	38.68M	103.04M
EBITDA	-17.71M	-8.25M	122.52M	115.58M	50.00M
Net Income	-68.24M	-86.06M	81.42M	58.32M	16.83M
Balance Sheet
Total Assets	1.25B	1.24B	1.21B	956.51M	847.33M
Cash, Cash Equivalents and Short-Term Investments	74.56M	96.56M	63.63M	58.63M	134.34M
Total Debt	536.13M	494.64M	291.50M	89.25M	805.00K
Total Liabilities	666.42M	590.91M	427.86M	258.99M	197.41M
Stockholders Equity	583.45M	651.69M	778.53M	697.10M	649.38M
Cash Flow
Free Cash Flow	-96.28M	-141.52M	-203.89M	-259.14M	-20.76M
Operating Cash Flow	-32.32M	-2.35M	19.63M	-6.94M	58.91M
Investing Cash Flow	-32.53M	-122.11M	-220.71M	-144.62M	7.15M
Financing Cash Flow	33.13M	153.84M	199.55M	76.75M	-49.76M

Changmao Biochemical Engineering Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.29
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0746	73 Outperform	HK$3.22B	6.67	8.22%	7.69%	-2.46%	20.39%
1702	69 Neutral	HK$1.06B	11.51	4.75%	2.12%	-13.75%	-56.14%
Sector *	58 Neutral	HK$16.77B	4.60	-5.52%	5.25%	-3.57%	-61.41%
0609	54 Neutral	HK$1.05B	14.46	2.75%	3.33%	-11.89%	-69.45%
2198	49 Neutral	HK$2.03B	3.43	11.49%	―	47.32%	492.76%
0954	46 Neutral	HK$153.61M	―	-10.94%	―	-9.85%	20.22%
0827	36 Underperform	HK$150.70M	―	-76.72%	―	-12.18%	-222.34%

Changmao Biochemical Engineering Co. Ltd. Class H Corporate Events

Changmao Biochemical Engineering Announces Major Sale and Leaseback Transaction

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

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

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

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

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

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

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

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.