Huashi Group Holdings Limited (1111) AI Stock Analysis

• Market Cap: HK$235.05M
• Dividend Yield: N/A
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): 2.2
• Beta (1Y): 0.36
• 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: 1.01
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -3.20
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$0.50 ▲(78.57% 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 Limited (1111) is a diversified investment holding company based in Hong Kong, primarily engaged in the manufacturing and trading of a wide range of products, including construction materials, home furnishings, and electronic appliances. The company operates across various sectors, leveraging its expertise to provide quality products and services, while also focusing on sustainable practices and innovation in its operations.

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	123.28M	288.53M	234.75M	207.17M	157.64M	103.44M
Gross Profit	75.00M	159.55M	149.86M	103.28M	57.67M	42.88M
EBITDA	51.05M	112.89M	87.89M	63.94M	28.17M	32.80M
Net Income	35.91M	80.64M	64.98M	45.66M	18.47M	24.23M
Balance Sheet
Total Assets	577.44M	522.33M	492.15M	161.65M	89.81M	78.37M
Cash, Cash Equivalents and Short-Term Investments	143.96M	100.34M	170.38M	3.29M	30.73M	31.40M
Total Debt	181.35M	117.69M	126.24M	40.53M	18.72M	11.17M
Total Liabilities	279.08M	179.30M	230.53M	68.11M	41.28M	25.96M
Stockholders Equity	298.37M	343.03M	261.62M	93.54M	48.52M	50.64M
Cash Flow
Free Cash Flow	-21.34M	-54.44M	-20.91M	-48.11M	11.73M	16.81M
Operating Cash Flow	-886.58K	60.52M	23.89M	-29.26M	18.41M	28.35M
Investing Cash Flow	-80.27M	-114.26M	-39.20M	-18.70M	13.39M	-2.36M
Financing Cash Flow	51.57M	-17.54M	184.75M	20.63M	-13.67M	-14.24M

Huashi Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1111, the sentiment is Neutral. The current price of 0.28 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.31, and above the 200-day MA of 0.26, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.88 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$235.05M	2.21	28.12%	―	―	―
1983	70 Outperform	HK$5.63B	4.09	12.50%	6.35%	-3.25%	22.96%
2139	61 Neutral	HK$3.77B	5.97	1.72%	―	-9.56%	-7.51%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6138	58 Neutral	€4.34B	8.03	2.15%	―	0.06%	43.86%
1916	54 Neutral	HK$4.22B	6.22	1.58%	6.21%	-8.55%	539.20%

Huashi Group Holdings Limited Corporate Events

Huashi Group Reports Strong Interim Financial Results for 2025

Huashi Group Holdings Limited announced its unaudited consolidated financial results for the first half of 2025, showing a significant improvement in financial performance compared to the same period in 2024. The company reported a 26.1% increase in revenue to RMB 155.4 million, a 44.0% rise in gross profit, and a 49.6% increase in profit for the period, indicating a strong operational performance and potentially positive implications for stakeholders.

The most recent analyst rating on (HK:1111) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Huashi Group Holdings Limited stock, see the HK:1111 Stock Forecast page.

Huashi Group Strengthens Remuneration Committee with New Appointment

Huashi Group Holdings Limited has announced the appointment of Ms. Chen Jizhen as a member of its Remuneration Committee, effective from August 29, 2025. This appointment allows the company to re-comply with the requirement of having a minimum of three members in the Remuneration Committee, as previously noted in a June 2025 announcement. The board extends a warm welcome to Ms. Chen, highlighting the company’s commitment to maintaining governance standards.

The most recent analyst rating on (HK:1111) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Huashi Group Holdings Limited stock, see the HK:1111 Stock Forecast page.

Huashi Group Holdings Announces Board Composition and Roles

Huashi Group Holdings Limited has announced the composition of its board of directors and their respective roles within the company. The board includes both executive and independent non-executive directors, with Mr. Chen Jicheng serving as the Chairman and CEO. The announcement also details the membership of the board committees, highlighting the leadership roles within the audit, remuneration, and nomination committees. This organizational update is crucial for stakeholders as it outlines the governance structure and leadership dynamics within Huashi Group, potentially impacting strategic decisions and corporate governance practices.

The most recent analyst rating on (HK:1111) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Huashi Group Holdings Limited stock, see the HK:1111 Stock Forecast page.

Huashi Group Holdings Projects Significant Profit Growth

Huashi Group Holdings Limited has announced a positive profit alert, indicating an expected increase in net profit by approximately 45% to 55% for the first half of 2025 compared to the same period in 2024. This growth is attributed to the company’s active business expansion, leading to significant revenue increases. However, the results are based on preliminary unaudited accounts and may differ from the final audited results.

The most recent analyst rating on (HK:1111) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Huashi Group Holdings Limited stock, see the HK:1111 Stock Forecast page.

Huashi Group Holdings to Review Interim Results and Dividend

Huashi Group Holdings Limited has announced that its board of directors will convene on August 29, 2025, to discuss and approve the interim results for the first half of 2025, consider an interim dividend, and address other business matters. This meeting is a significant event for stakeholders as it will provide insights into the company’s financial health and potential shareholder returns.