Huisheng International Holdings Ltd. (1340) AI Stock Analysis

• Market Cap: HK$45.22M
• Dividend Yield: N/A
• Average Volume (3M): 782.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -65.37%
• EPS Growth: 85.42%
• Country: HK
• Employees: 30
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): >-0.01
• Shares Outstanding: 922,838,000
• 10 Day Avg. Volume: 984,800
• 30 Day Avg. Volume: 782,333
• PEG Ratio: 0.01
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 4.30
• 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: 48 Neutral
• Price Target: HK$0.05 ▲(17.50% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is held back primarily by weak financial performance (shrinking revenue and ongoing losses) and limited valuation support (negative P/E, no dividend). A strong low-debt balance sheet and improved 2024 cash flow help, while technical indicators are broadly neutral.

Positive Factors

Conservative balance sheet

Extremely low leverage reduces refinancing and interest-rate risk and preserves financial optionality. Over a multi-month horizon this foundation supports runway for operational restructuring or investment without immediate capital markets dependence, aiding survival during a turnaround.

Return to positive cash flow in 2024

Resuming positive operating and free cash flow materially improves internal funding capacity and lowers reliance on external financing. If sustained, FCF supports reinvestment or working-capital normalization and reduces execution risk during the path from losses to consistent profitability.

Progress toward profitability

Narrowing losses indicate that cost controls or revenue stabilization efforts are having effect, signaling operational improvement. Persistent progress reduces structural impairment risk and increases the probability management can reach sustainable breakeven over the coming quarters.

Negative Factors

Multi-year revenue decline

Sustained top-line contraction undermines operating leverage and market relevance; a 23% decline in 2024 after prior drops suggests weakening demand or lost share. Without a durable revenue recovery, margin expansion and long-term profitability remain unlikely.

Minimal gross margin

A ~1% gross margin provides almost no buffer to cover SG&A, R&D or unforeseen cost increases. Such thin product economics constrain the business's ability to scale profitably and leave long-term margins highly vulnerable to input-cost or pricing pressure.

Volatile cash generation

Irregular cash conversion undermines planning and raises refinancing risks despite low debt. Episodic inflows followed by outflows indicate operational instability, making it difficult to commit to investments or sustain turnaround programs without securing durable, predictable cash flows.

Huisheng International Holdings Ltd. Business Overview & Revenue Model

Company Description

Huisheng International Holdings Limited, an investment holding company, engages in breeding, farming, and slaughtering hogs in the People's Republic of China and Japan. It offers various pork products, including fresh, chilled, and frozen pork, and side products, as well as processed pork products, including cured pork and sausages. The company also involved in breeding, farming, and selling piglets and porkers; provision of consultancy services in hog breeding and farming; and provision of administrative services. In addition, it engages in money lending business; sale and distribution of pipe system products; and provision of technical advisory services on the design, application, implementation, and installation. The company was founded in 1983 and is headquartered in Changde, the People's Republic of China.

How the Company Makes Money

Huisheng International Holdings Ltd. generates revenue primarily through the sale of pork products. The company's revenue streams include the sale of fresh pork, processed pork, and by-products. They operate through various distribution channels, including direct sales to supermarkets, food service providers, and other retail outlets. The company's earnings are influenced by factors such as pork supply and demand dynamics, pricing strategies, and operational efficiencies. Significant partnerships with local farms and distributors may also contribute to their revenue generation, ensuring a steady supply chain and market reach.

Huisheng International Holdings Ltd. Financial Statement Overview

Summary

Operating performance is weak: revenue has been shrinking for several years and profitability remains loss-making with minimal gross margin. Offsetting this, the balance sheet is conservatively financed with near-zero leverage and 2024 saw a return to positive operating and free cash flow, though cash generation has been volatile historically.

Income Statement

Revenue has been shrinking for several years (2024 down ~23% after declines in 2023 and 2022), signaling weakening demand and/or pricing pressure. Profitability remains very challenged: gross profit is barely positive in 2024 (~1% gross margin) and operating results are still loss-making (negative operating and net margins). Losses narrowed meaningfully versus 2023, but the company is still far from consistent profitability, keeping the income statement quality weak.

Balance Sheet

The balance sheet looks conservatively financed with extremely low debt relative to equity (near-zero debt-to-equity across 2021–2024), which reduces refinancing and interest-rate risk. However, shareholder returns are negative due to ongoing net losses (negative return on equity across the period), and equity has trended down from earlier years, reflecting value erosion despite low leverage.

Cash Flow

Cash generation is volatile. 2024 shows a return to positive operating and free cash flow (~HK$6.9M), a material improvement from 2023’s cash burn, but free cash flow fell sharply versus 2022 and the multi-year pattern swings between strong inflows (2021–2022) and outflows (2019–2020, 2023). Free cash flow is currently positive, yet the sustainability is uncertain given continued net losses and inconsistent operating cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Jun 2021
Income Statement
Total Revenue	19.85M	44.28M	68.30M	72.95M	81.29M	29.66M
Gross Profit	2.72M	542.00K	-4.64M	-1.27M	2.60M	-2.08M
EBITDA	1.62M	-2.33M	-28.75M	-5.53M	4.68M	-21.93M
Net Income	-22.64M	-24.52M	-144.37M	-5.64M	-31.77M	-36.63M
Balance Sheet
Total Assets	459.23M	467.71M	487.48M	651.51M	658.72M	700.91M
Cash, Cash Equivalents and Short-Term Investments	320.60M	403.15M	394.38M	421.54M	136.78M	33.68M
Total Debt	100.00K	101.00K	102.00K	102.00K	102.00K	20.04M
Total Liabilities	73.64M	74.00M	70.79M	90.53M	84.58M	102.77M
Stockholders Equity	390.24M	397.04M	420.89M	563.58M	573.35M	594.82M
Cash Flow
Free Cash Flow	5.09M	6.91M	-28.45M	284.26M	139.12M	1.65M
Operating Cash Flow	5.09M	6.96M	-28.23M	284.26M	139.12M	1.65M
Investing Cash Flow	344.00K	869.00K	973.00K	640.00K	-3.03M	6.00K
Financing Cash Flow	0.00	0.00	0.00	0.00	-19.70M	10.12M

Huisheng International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 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:1340, the sentiment is Positive. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and below the 200-day MA of 0.04, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 58.99 is Neutral, neither overbought nor oversold. The STOCH value of -15.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1340.

Huisheng International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2147	51 Neutral	HK$42.34M	-0.17	-28.48%	―	56.39%	-86.79%
1340	48 Neutral	HK$45.22M	-1.17	-5.61%	―	-65.37%	85.42%
8241	45 Neutral	HK$40.50M	-2.20	114.90%	―	-7.42%	-0.97%
8179	44 Neutral	HK$24.80M	14.81	-7.07%	―	1.85%	-18.52%
1676	43 Neutral	HK$55.05M	-0.63	-78.83%	―	22.31%	2.36%
0841	43 Neutral	HK$112.85M	1.70	-20.08%	―	75.21%	18.42%