Huasheng International Holding Limited (1323) AI Stock Analysis

• Market Cap: HK$99.75M
• Dividend Yield: N/A
• Average Volume (3M): 218.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: -28.42%
• EPS Growth: -47.07%
• Country: HK
• Employees: 173
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Household & Personal Products
• EPS (TTM): -0.06
• Shares Outstanding: 755,654,700
• 10 Day Avg. Volume: 550,020
• 30 Day Avg. Volume: 218,626
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 1.18
• 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: 45 Neutral
• Price Target: HK$0.10 ▼(-15.00% Downside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 11/19/25

The overall stock score is primarily impacted by poor financial performance and weak technical indicators. The company's declining revenue and profitability, coupled with negative market sentiment, contribute to a low score. Valuation concerns, including a negative P/E ratio and lack of dividend yield, further weigh down the score.

Positive Factors

Manageable leverage

A low debt-to-equity ratio (0.26) and an improving leverage trend provide structural financial flexibility. Over the medium term this makes refinancing, restructuring, or targeted investment less risky and reduces insolvency tail risk while the company works to restore profitability.

Positive free cash flow trend

Consistent free cash flow growth and a relatively high FCF-to-net-income ratio indicate the business can generate cash despite accounting losses. Sustainable cash generation supports liquidity, funds operations or turnaround initiatives, and reduces near-term external financing needs.

Lean operating footprint

A small employee base implies a lean cost structure and operational agility. This structural slimness makes cost reductions and organizational changes easier to implement, helping margins recover faster if revenue stabilizes or management pursues efficiency-led turnaround actions.

Negative Factors

Steep revenue decline

Material multi-year revenue contraction erodes scale economics and weakens pricing and distribution leverage. Persistent top-line decline makes fixed costs harder to cover, limits reinvestment capacity, and increases the timeline and cost of any sustainable recovery.

Persistent unprofitability

Deep and ongoing negative margins indicate structural operational issues or cost mismatches versus revenue. Continued losses will deplete equity, constrain capital allocation, and force reliance on external financing unless margins are restored through price, cost, or product changes.

Negative return on equity

A negative ROE signals that shareholder capital is not generating returns, undermining long-term investor support. This reduces ability to raise equity on favorable terms and limits strategic options, making recovery more dependent on operational turnaround rather than new capital.

Huasheng International Holding Limited Business Overview & Revenue Model

Company Description

Huasheng International Holding Limited, an investment holding company, engages in the concrete, money lending, and household consumables businesses in Hong Kong, the United Kingdom, and the People's Republic of China. The company is involved in the wholesale and retail of household consumables; and money lending activities. It also produces and sells ready-mixed commercial concrete; and cement and construction materials, as well as provides management services. The company was formerly known as Newtree Group Holdings Limited and changed its name to Huasheng International Holding Limited in March 2020. Huasheng International Holding Limited was incorporated in 2010 and is based in Central, Hong Kong.

Huasheng International Holding Limited Financial Statement Overview

Summary

The company faces significant challenges with declining revenue and profitability, as well as operational inefficiencies. The balance sheet shows moderate leverage, but the negative return on equity is a concern. Cash flow generation is a positive aspect, but the company needs to improve its operational performance to achieve sustainable growth.

Income Statement

The income statement shows a concerning trend with declining revenue and profitability. Revenue has decreased significantly over the years, with a notable drop of 18.77% in the latest year. Gross profit margin has also declined, indicating pressure on cost management. The company has been unable to maintain positive net income, with a net profit margin of -24.80% in the latest year, reflecting ongoing losses. EBIT and EBITDA margins are negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved slightly over the years, currently at 0.26, indicating manageable leverage. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' investments. The equity ratio is stable, showing a reasonable proportion of equity financing.

Cash Flow

Cash flow analysis reveals mixed results. While the company has achieved positive free cash flow growth of 11.67% recently, the operating cash flow to net income ratio is low, indicating challenges in converting income into cash. The free cash flow to net income ratio is relatively high, suggesting that despite losses, the company is generating cash flow.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	372.57M	565.91M	660.37M	803.91M	919.33M
Gross Profit	65.20M	154.46M	190.35M	181.54M	198.01M
EBITDA	-39.08M	19.68M	-1.60M	82.69M	81.44M
Net Income	-92.38M	-31.44M	-54.77M	31.29M	-1.63M
Balance Sheet
Total Assets	1.47B	1.64B	1.80B	2.03B	1.73B
Cash, Cash Equivalents and Short-Term Investments	76.56M	163.36M	69.49M	167.83M	121.53M
Total Debt	229.21M	338.40M	376.30M	341.71M	357.32M
Total Liabilities	567.56M	675.58M	834.50M	1.07B	815.30M
Stockholders Equity	897.85M	960.40M	964.30M	955.48M	919.17M
Cash Flow
Free Cash Flow	116.88M	90.70M	-70.97M	70.98M	-29.86M
Operating Cash Flow	128.70M	96.75M	-66.22M	77.98M	-22.28M
Investing Cash Flow	-89.57M	9.90M	-79.98M	-105.20M	-12.03M
Financing Cash Flow	-129.30M	-11.62M	117.50M	-51.15M	127.67M

Huasheng International Holding Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 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:1323, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and below the 200-day MA of 0.14, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.57 is Neutral, neither overbought nor oversold. The STOCH value of 61.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1323.

Huasheng International Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8436	65 Neutral	HK$100.00M	13.10	1.89%	―	-20.10%	-74.16%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1338	56 Neutral	HK$117.01M	-13.18	1.78%	―	5.99%	-74.29%
6893	49 Neutral	HK$242.38M	-5.88	-27.00%	―	10.42%	11.14%
1667	47 Neutral	HK$384.00M	-3.90	-346.03%	―	-24.25%	49.22%
1323	45 Neutral	HK$99.75M	-0.67	-16.32%	―	-28.42%	-47.07%
8281	45 Neutral	HK$118.00M	-9.02	2.37%	―	-1.65%	230.00%

Huasheng International Holding Limited Corporate Events

Huasheng International Commits HK$20 Million to Lockhart Total Return Fund

Huasheng International Holding has committed HK$20 million of its internal resources to subscribe to the Lockhart Total Return Fund L.P., a limited partnership managed by Lockhart Total Return Fund G.P. and advised by Templewater Hong Kong, marking a notable allocation into a diversified, return-focused investment vehicle. The fund targets periodic distributions and capital appreciation through investments in private equity, private credit, convertible bonds and listed securities, and the deal is classified as a discloseable transaction under Hong Kong listing rules, highlighting a strategic move to enhance investment returns without requiring shareholder approval.

By directing capital into a multi-asset fund structure, Huasheng is seeking to broaden its exposure to alternative and listed market opportunities, potentially smoothing earnings through diversified income and appreciation streams. The use of internal resources for the HK$20 million commitment suggests sufficient liquidity and balance-sheet capacity, while the transaction’s mid-range size under listing thresholds underscores a measured but meaningful step in the company’s capital deployment strategy.

The most recent analyst rating on (HK:1323) stock is a Sell with a HK$0.11 price target. To see the full list of analyst forecasts on Huasheng International Holding Limited stock, see the HK:1323 Stock Forecast page.