Huisheng International Holdings Ltd. (1340) AI Stock Analysis

• Market Cap: HK$33.22M
• Dividend Yield: N/A
• Average Volume (3M): 456.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -36.81%
• EPS Growth: 83.53%
• Country: HK
• Employees: 30
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Packaged Foods
• EPS (TTM): -0.02
• Shares Outstanding: 922,838,000
• 10 Day Avg. Volume: 843,800
• 30 Day Avg. Volume: 456,400
• PEG Ratio: -0.01
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.23
• 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

• Rating: 47 Neutral
• Price Target: ―

Huisheng International Holdings Ltd. presents a cautious investment case with significant financial challenges, including declining revenues, persistent losses, and cash flow volatility. While technical indicators suggest some stability, the negative valuation metrics reflect ongoing financial struggles. The company's strong liquidity is a positive but is overshadowed by its operational inefficiencies and equity risks.

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

Huisheng International Holdings Ltd. faces significant challenges with declining revenues and persistent losses impacting its profitability metrics. Despite maintaining strong liquidity and low leverage, the company's declining stockholders' equity and cash flow volatility pose risks to financial stability. Continued focus on improving operational efficiency and revenue generation is critical for future performance.

Income Statement

The company's revenue decreased significantly from 2023 to 2024, with total revenue dropping from $68.3 million to $44.3 million, reflecting a negative growth trend. Gross profit margin remains extremely low, and the net profit margin is negative, indicating consistent losses. EBIT and EBITDA margins are also negative, suggesting operational inefficiencies.

Balance Sheet

While the company maintains a healthy cash position and low debt levels, with a debt-to-equity ratio close to zero, indicating strong liquidity, the equity ratio has declined due to decreasing stockholders' equity, reflecting potential risks in maintaining sufficient equity levels. Return on Equity is negative due to net losses, impacting overall profitability.

Cash Flow

The company has shown volatility in cash flow, with a significant drop in operating and free cash flow from 2022 to 2023. The operating cash flow to net income ratio is not meaningful due to negative net income, and free cash flow remains zero in 2024, highlighting instability and inefficiency in cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.28M	68.30M	72.95M	81.29M	29.66M
Gross Profit	542.00K	138.00K	-1.27M	2.60M	-2.08M
EBITDA	-2.33M	-28.75M	-5.53M	4.68M	-21.93M
Net Income	-24.52M	-144.37M	-5.64M	-31.77M	-36.63M
Balance Sheet
Total Assets	467.71M	487.48M	651.51M	658.72M	700.91M
Cash, Cash Equivalents and Short-Term Investments	403.15M	394.38M	421.54M	136.78M	33.68M
Total Debt	101.00K	102.00K	102.00K	102.00K	20.04M
Total Liabilities	74.00M	70.79M	90.53M	84.58M	102.77M
Stockholders Equity	397.04M	420.89M	563.58M	573.35M	594.82M
Cash Flow
Free Cash Flow	6.91M	-28.45M	284.26M	139.12M	1.65M
Operating Cash Flow	6.96M	-28.23M	284.26M	139.12M	1.65M
Investing Cash Flow	869.00K	973.00K	640.00K	-3.03M	6.00K
Financing Cash Flow	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: Negative

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 above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.76 is Neutral, neither overbought nor oversold. The STOCH value of 94.59 is Negative, 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 *	63 Neutral	$16.78B	10.88	-7.08%	3.04%	1.73%	-25.15%
2147	51 Neutral	HK$40.32M	―	-12.63%	―	32.15%	-171.32%
0841	48 Neutral	HK$47.95M	―	-23.44%	―	-71.04%	-21.75%
1340	47 Neutral	HK$33.22M	―	-6.00%	―	-36.81%	83.53%
8179	47 Neutral	HK$28.62M	1.52	0.32%	―	39.05%	―
8241	44 Neutral	HK$39.78M	―	-206.10%	―	-12.58%	-60.08%
1676	43 Neutral	HK$86.68M	―	-44.56%	―	-11.36%	24.75%

Huisheng International Holdings Ltd. Corporate Events

Huisheng International Holdings Reports 2024 Annual Results with Reduced Losses

Huisheng International Holdings Limited announced its audited consolidated results for the year ended 31 December 2024, reporting a significant decrease in revenue from RMB 68,297,000 in 2023 to RMB 44,279,000 in 2024. The company faced a substantial loss before taxation of RMB 24,214,000, although this was an improvement from the previous year’s loss of RMB 146,935,000. The results indicate ongoing financial challenges, including write-offs and impairment losses, which could impact the company’s market positioning and stakeholder confidence.

Huisheng International Announces Board Changes with New Appointment

Huisheng International Holdings Ltd. has announced significant changes in its board composition. Mr. Chan Kwun Nam has resigned from his role as an independent non-executive director and chairman of several committees, citing a desire to focus on other business engagements. The company has appointed Mr. Luo Mingsheng as the new independent non-executive director, effective March 13, 2025. Mr. Luo brings extensive experience in auditing and corporate finance, which is expected to strengthen the company’s governance and strategic oversight. His appointment is for a three-year term, and he will receive an annual director fee of RMB 50,000.

Huisheng International Holdings Announces Board Composition

Huisheng International Holdings Limited, a company incorporated in the Cayman Islands, has announced the composition of its Board of Directors and their roles within the organization. The Board consists of executive directors Mr. Zhang Zhenghua and Ms. Xiang Yuan, as well as independent non-executive directors Dr. Wang Guiping, Mr. Huang Ruilin, and Mr. Luo Mingsheng. The company has also established four standing Board committees, namely the Audit, Remuneration, Nomination, and Investment and Treasury Committees, with Mr. Luo Mingsheng serving as the Chairman of all these committees. This announcement provides clarity on the governance structure of Huisheng International Holdings, which may impact its strategic direction and decision-making processes.