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

• Market Cap: €153.61M
• Dividend Yield: N/A
• Average Volume (3M): 78.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: -17.15%
• EPS Growth: 30.94%
• Country: HK
• Employees: 571
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.05
• Shares Outstanding: 183,700,000
• 10 Day Avg. Volume: 41,600
• 30 Day Avg. Volume: 78,133
• PEG Ratio: 0.16
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -2.07
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$0.50 ▲(78.57% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and negative profit margins. Technical analysis suggests a bearish trend, while valuation metrics indicate unattractiveness due to ongoing losses. The lack of earnings call data and corporate events further limits positive influences on the score.

Positive Factors

Strong R&D Capabilities

Strong R&D capabilities enable the company to innovate and offer specialized products, supporting premium pricing and competitive advantage.

Strategic Partnerships

These partnerships expand market access and secure long-term contracts, providing stable income and reinforcing market position.

Sustainability Focus

A focus on sustainability aligns with global trends, potentially increasing demand and supporting long-term revenue growth.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in market competitiveness and demand, impacting financial stability and growth prospects.

Negative Profit Margins

Negative margins reflect operational inefficiencies and ongoing losses, which could hinder reinvestment and long-term viability.

Rising Leverage

Increased leverage can strain financial flexibility and elevate risk, potentially limiting growth and investment opportunities.

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

Company Description

Changmao Biochemical Engineering Co. Ltd. Class H (0954) is a leading player in the biochemical industry, primarily engaged in the research, development, production, and sale of various biochemical products. The company specializes in the manufacture of amino acids, feed additives, and other biochemical raw materials, serving sectors such as agriculture, food, and pharmaceuticals. With a strong focus on innovation and sustainability, Changmao aims to provide high-quality products that meet the evolving demands of its diverse customer base.

How the Company Makes Money

Changmao Biochemical Engineering Co. Ltd. generates revenue through multiple streams, primarily from the sale of its biochemical products, including amino acids and feed additives. The company leverages its strong research and development capabilities to create tailored solutions for clients, which allows for premium pricing on specialized products. Additionally, strategic partnerships with agricultural and pharmaceutical companies enhance its market reach and lead to long-term contracts that provide stable income. The rising global demand for sustainable and high-quality biochemical products further contributes to its earnings, as the company positions itself as a key supplier in the industry.

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

Summary

Changmao Biochemical Engineering Co. Ltd. is facing significant financial challenges, with declining revenues, negative profit margins, and increasing leverage. The company needs to address its operational inefficiencies and improve cash flow management to stabilize its financial position.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	543.27M	584.79M	637.08M	730.03M	547.98M	444.11M
Gross Profit	13.94M	16.78M	25.81M	180.83M	38.68M	95.45M
EBITDA	-39.52M	-17.71M	-8.25M	122.52M	115.58M	50.00M
Net Income	-75.25M	-68.24M	-86.06M	81.42M	58.32M	16.83M
Balance Sheet
Total Assets	1.23B	1.25B	1.24B	1.21B	956.51M	847.33M
Cash, Cash Equivalents and Short-Term Investments	66.46M	74.56M	96.56M	63.63M	58.63M	134.34M
Total Debt	535.70M	536.13M	494.64M	291.50M	89.25M	805.00K
Total Liabilities	672.34M	666.42M	590.91M	427.86M	258.99M	197.41M
Stockholders Equity	557.66M	583.45M	651.69M	778.53M	697.10M	649.38M
Cash Flow
Free Cash Flow	-2.36M	-96.28M	-141.52M	-203.89M	-259.14M	-20.76M
Operating Cash Flow	9.63M	-32.32M	-2.35M	19.63M	-6.94M	58.91M
Investing Cash Flow	9.16M	-32.53M	-122.11M	-220.71M	-144.62M	7.15M
Financing Cash Flow	-21.57M	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: 0.28
• 50DMA: Negative
• 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 0.28 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.30, and below the 200-day MA of 0.32, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 35.12 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$4.08B	7.18	9.36%	6.07%	-3.73%	6.09%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1702	59 Neutral	HK$1.21B	16.88	3.61%	2.41%	-8.51%	-68.34%
2198	57 Neutral	HK$2.78B	3.69	13.87%	―	9.20%	213.87%
0609	54 Neutral	HK$1.22B	18.94	2.46%	3.36%	-5.29%	-32.47%
0827	46 Neutral	HK$162.76M	-0.27	-112.79%	―	-22.72%	-212.73%
0954	44 Neutral	€153.61M	-1.89	-13.04%	―	-17.15%	30.94%

Changmao Biochemical Engineering Co. Ltd. Class H Corporate Events

Changmao Biochemical Reports Increased Losses and Revenue Decline for H1 2025

Changmao Biochemical Engineering Co. Ltd. reported its interim results for the six months ended June 30, 2025, showing a decrease in revenue to RMB 272,278,000 from RMB 313,802,000 in the same period in 2024. The company also reported a loss attributable to shareholders of RMB 25,790,000, compared to a loss of RMB 18,786,000 in the previous year, and the directors do not recommend an interim dividend for this period.