Huashi Group Holdings Limited (1111) AI Stock Analysis

• Market Cap: HK$227.34M
• Dividend Yield: N/A
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): 2.2
• Beta (1Y): 0.27
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 227
• Sector: Communication Services
• Sector Strength: 97
• Industry: Banks - Regional
• EPS (TTM): 0.07
• Shares Outstanding: 770,650,000
• 10 Day Avg. Volume: 1,369,600
• 30 Day Avg. Volume: 1,448,000
• PEG Ratio: 1.07
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -3.41
• 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: 74 Outperform
• Price Target: HK$0.50 ▲(72.41% Upside)

The overall stock score is primarily driven by strong financial performance and attractive valuation. The company's solid revenue growth and profitability are complemented by a low P/E ratio, indicating potential undervaluation. Technical indicators suggest a positive trend, though caution is advised due to potential oversold conditions. The negative free cash flow is a concern that could affect future liquidity.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective business strategies, supporting long-term financial health.

Profitability

High profit margins reflect efficient cost management and strong pricing power, contributing to sustainable profitability.

Balance Sheet Health

Low leverage enhances financial stability and flexibility, allowing the company to navigate economic cycles effectively.

Negative Factors

Negative Free Cash Flow

Negative free cash flow could strain liquidity and limit the ability to invest in growth opportunities, impacting long-term sustainability.

Cash Generation Ability

While cash generation is decent, it may not be sufficient to cover negative free cash flow, posing risks to financial flexibility.

Liquidity Concerns

Ongoing liquidity issues could hinder operational capabilities and strategic initiatives, affecting long-term growth prospects.

Huashi Group Holdings Limited Business Overview & Revenue Model

Company Description

Huashi Group Holdings Ltd. engages in the provision of integrated branding, advertising and marketing solutions. It offers services across the entire value chain from market research through collaboration with research institutes to execution of branding, advertising and marketing solutions, to assist brand owners, advertisers and advertising agents in formulating and implementing service proposals to fulfil promotional needs and marketing objectives. The company was founded on February 18, 2021 and is headquartered in Wuhan, China.

How the Company Makes Money

Huashi Group Holdings Limited generates revenue through multiple streams, including the sale of manufactured goods such as construction materials and home furnishings. The company benefits from its established supply chain and distribution networks, allowing it to reach a broad customer base effectively. Additionally, Huashi Group may engage in partnerships with local and international retailers, which enhance its market presence and sales volume. The company's revenue model is supported by a combination of direct sales, wholesale distribution, and possibly online e-commerce channels, capitalizing on market demand for its diverse product offerings.

Huashi Group Holdings Limited Financial Statement Overview

Summary

Huashi Group Holdings Limited demonstrates strong financial performance with solid revenue growth and profitability. The balance sheet reflects a stable financial position with low leverage and high equity. However, the negative free cash flow warrants attention, as it could impact future liquidity if not addressed.

Income Statement

The company has shown strong revenue growth, with a 22.88% increase from 2023 to 2024. Gross profit margin is healthy at 55.31%, and net profit margin is robust at 27.95%. EBIT and EBITDA margins are also strong at 35.97% and 39.14%, respectively. This indicates efficient cost management and profitability.

Balance Sheet

The debt-to-equity ratio is 0.34, indicating a conservative leverage position. Return on equity is impressive at 23.50%, reflecting efficient use of equity to generate profits. The equity ratio is strong at 65.67%, suggesting a solid capital structure with a high proportion of equity financing.

Cash Flow

Operating cash flow to net income ratio is 0.75, indicating decent cash generation relative to net income. However, the free cash flow is negative, which could be a concern if it persists. The free cash flow to net income ratio is -0.67, highlighting potential cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	256.31M	288.53M	234.75M	207.17M	157.64M	103.44M
Gross Profit	208.05M	159.55M	149.86M	103.28M	57.67M	42.88M
EBITDA	147.60M	112.89M	87.89M	63.94M	28.17M	32.80M
Net Income	135.02M	80.64M	64.98M	45.66M	18.47M	24.23M
Balance Sheet
Total Assets	748.51M	522.33M	492.15M	161.65M	89.81M	78.37M
Cash, Cash Equivalents and Short-Term Investments	88.48M	100.34M	170.38M	3.29M	30.73M	31.40M
Total Debt	154.30M	117.69M	126.24M	40.53M	18.72M	11.17M
Total Liabilities	313.53M	179.30M	230.53M	68.11M	41.28M	25.96M
Stockholders Equity	434.98M	343.03M	261.62M	93.54M	48.52M	50.64M
Cash Flow
Free Cash Flow	-12.66M	-54.44M	-20.91M	-48.11M	11.73M	16.81M
Operating Cash Flow	69.93M	60.52M	23.89M	-29.26M	18.41M	28.35M
Investing Cash Flow	-108.91M	-114.26M	-39.20M	-18.70M	13.39M	-2.36M
Financing Cash Flow	-37.35M	-17.54M	184.75M	20.63M	-13.67M	-14.24M

Huashi Group Holdings Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1111, the sentiment is Positive. The current price of 0.29 is above the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.30, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.61 is Neutral, neither overbought nor oversold. The STOCH value of 66.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1111.

Huashi Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1111	74 Outperform	HK$227.34M	2.18	28.12%	―	―	―
1983	67 Neutral	HK$5.90B	4.35	12.50%	5.84%	-3.25%	22.96%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1916	54 Neutral	HK$4.10B	6.22	1.58%	6.21%	-8.55%	539.20%
6138	51 Neutral	HK$3.96B	7.22	2.15%	―	0.06%	43.86%
2139	48 Neutral	HK$3.71B	5.89	1.72%	―	-9.56%	-7.51%