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

• Market Cap: €174.80M
• Dividend Yield: N/A
• Average Volume (3M): 111.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• 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: 97,200
• 30 Day Avg. Volume: 111,600
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €0.46
• Price Target Upside: 37.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: HK$0.50 ▲(51.52% Upside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and negative profit margins. While technical indicators show some neutral to slightly positive signals, the negative valuation metrics further weigh down the score. The absence of earnings call insights and corporate events leaves the financial and technical aspects as the primary determinants of the score.

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

Company Description

Changmao Biochemical Engineering Company Limited, together with its subsidiaries, produces and sells organic acids for food additive, chemical, and pharmaceutical industries in Mainland China, Europe, the Asia Pacific, the United States, and internationally. Its products include fumaric acid, maleic acid, L-malic acid, D-malic acid, DL-malic acid, L(+)-tartaric acid, D(-)-tartaric acid, DL-tartaric acid, L-aspartic acid, and aspartame that are used as food additives, pharmaceutical adjuvant, and active pharmaceutical ingredient, etc. The company is also involved in the research and development of medicine and nutraceutical products; production and sale of food additives; trading of organic acids; and property holding activities. Changmao Biochemical Engineering Company Limited was founded in 1992 and is headquartered in Changzhou, the People's Republic of China.

How the Company Makes Money

Changmao Biochemical Engineering Co. Ltd. generates revenue through the sale of its organic acid products, which are produced in its manufacturing facilities and distributed to a diverse range of industries both domestically and internationally. The company's key revenue streams include direct sales to manufacturers in the food and beverage sector, where these acids serve as acidity regulators and flavor enhancers, as well as to the pharmaceutical industry, where they are used in the production of various medicinal products. Additionally, Changmao may engage in strategic partnerships and collaborations that enhance its market reach and product offerings. The company's focus on quality and innovation helps maintain competitive advantage and supports its financial performance.

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	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: Positive
• Last Price: 0.33
• 50DMA: Positive
• 100DMA: Positive
• 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:0954, the sentiment is Positive. The current price of 0.33 is above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.32, and below the 200-day MA of 0.35, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.86 is Neutral, neither overbought nor oversold. The STOCH value of 43.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	78 Outperform	4.27B	7.43	8.12%	6.67%	-3.73%	6.09%
2198	65 Neutral	3.01B	4.00	10.84%	―	9.20%	213.87%
1702	63 Neutral	869.32M	12.12	4.69%	2.58%	-8.51%	-68.34%
0609	54 Neutral	1.27B	20.44	―	3.45%	-5.29%	-32.47%
0954	45 Neutral	€174.80M	―	-13.04%	―	-17.15%	30.94%
0827	45 Neutral	204.95M	-0.34	-125.34%	―	-22.72%	-212.73%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.

Changmao Biochemical Engineering Announces Upcoming Board Meeting

Changmao Biochemical Engineering Co. Ltd. has announced that its board of directors will hold a meeting on August 18, 2025, to approve the unaudited interim results for the first half of the year, consider dividend payments, and discuss other business matters. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential dividend distributions, impacting investor confidence and market positioning.

Changmao Biochemical Issues Profit Warning Amid Market Challenges

Changmao Biochemical Engineering Company Limited has issued a profit warning, indicating an expected consolidated net loss of RMB24,000,000 to RMB27,000,000 for the first half of 2025, compared to a net loss of approximately RMB18,786,000 in the same period of 2024. The company’s financial performance has been impacted by decreased sales revenue and gross profit due to lower product selling prices and intense market competition, as well as increased interest expenses. The company advises shareholders and potential investors to exercise caution when dealing in its shares.

Changmao Biochemical Announces Delay in Circular Dispatch for Major Transaction

Changmao Biochemical Engineering Co. Ltd. announced a delay in the dispatch of a circular related to a major transaction involving a sale and leaseback arrangement. The company has received a waiver from the Stock Exchange for this delay, with a new deadline set for August 12, 2025, to dispatch the circular.

Changmao Biochemical Delays Circular Dispatch for Major Transaction

Changmao Biochemical Engineering Co. Ltd. has announced a delay in the dispatch of a circular related to a major transaction involving a sale and leaseback arrangement. The delay is due to the need for additional time to finalize certain financial information, including details about working capital sufficiency, with the new dispatch date expected on or before August 12, 2025. This postponement may impact stakeholders’ expectations and timelines regarding the transaction.

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.