Huisheng International Holdings Ltd. (1340) AI Stock Analysis

• Market Cap: HK$44.30M
• Dividend Yield: N/A
• Average Volume (3M): 782.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• 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 ▲(20.00% Upside)

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

Near-zero debt-to-equity reduces refinancing and interest-rate risk, giving the company long-term financial flexibility. This durable strength supports operations during cyclical downturns and limits leverage-driven distress, improving survival chances while pursuing operational recovery.

Return to positive cash flow in 2024

A return to positive operating and free cash flow signals improved cash conversion and operational resilience versus prior years. Sustainable positive FCF would enable internal funding for working capital and modest reinvestment without relying on external financing, aiding long-term viability.

Narrowing losses year-over-year

Meaningful narrowing of losses indicates management progress on cost control or revenue stabilization. If sustained, this trend can translate into eventual operating profitability, supporting improved margins and equity preservation over the medium term.

Negative Factors

Multi-year revenue decline

Prolonged revenue contraction suggests structural demand loss, pricing pressure, or market-share erosion. Persistent top-line decline undermines scale economics and makes it harder to cover fixed costs, limiting prospects for durable margin recovery and sustainable profit growth.

Very low gross margins and ongoing losses

A ~1% gross margin provides almost no buffer against cost increases or supplier/price shocks, constraining the company's ability to reach operating leverage. Continued net losses mean retained equity erosion and reduced capacity to invest in product or market development long-term.

Volatile cash generation

Irregular operating and free cash flow history raises uncertainty about the sustainability of recent positive cash generation. Volatility hampers planning, increases reliance on reserves, and complicates consistent reinvestment or shareholder returns, limiting durable operational improvements.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.04, and below the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.32 is Neutral, neither overbought nor oversold. The STOCH value of 64.44 is Neutral, 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$42.56M	-0.31	-28.48%	―	56.39%	-86.79%
1340	48 Neutral	HK$44.30M	-1.70	-5.61%	―	-65.37%	85.42%
8179	44 Neutral	HK$24.80M	-0.81	-7.07%	―	1.85%	-18.52%
1676	43 Neutral	HK$139.55M	-0.79	-70.35%	―	22.31%	2.36%
0841	43 Neutral	HK$133.90M	-1.16	-20.08%	―	75.21%	18.42%
8241	40 Underperform	HK$32.19M	-2.13	―	―	-7.42%	-0.97%