Aowei Holding Limited (1370) AI Stock Analysis

• Market Cap: HK$457.89M
• Dividend Yield: N/A
• Average Volume (3M): 30.27K
• Price to Earnings (P/E): ―
• Beta (1Y): <0.01
• Revenue Growth: -6.51%
• EPS Growth: 41.00%
• Country: HK
• Employees: 759
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.05
• Shares Outstanding: 1,635,330,000
• 10 Day Avg. Volume: 35,400
• 30 Day Avg. Volume: 30,266
• PEG Ratio: 0.07
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 7.44
• 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: 51 Neutral
• Price Target: HK$0.42 ▲(31.87% Upside)

Aowei Holding Limited's overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenues and profitability. Despite strong technical indicators suggesting bullish momentum, the negative P/E ratio and lack of dividend yield highlight valuation concerns. The absence of earnings call insights and corporate events leaves the financial and technical aspects as the main influences on the score.

Positive Factors

Strategic Partnerships

These partnerships can lead to large-scale projects and contracts, providing a steady revenue stream and enhancing market position.

Diversified Revenue Streams

Diversification in revenue sources reduces dependency on a single segment, enhancing resilience against market fluctuations.

Focus on Innovation

Emphasis on innovation positions the company to capitalize on emerging digital trends, potentially driving future growth.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in maintaining market share and competitiveness, impacting long-term growth prospects.

Rising Leverage

Increased leverage heightens financial risk and limits the company's ability to invest in growth opportunities.

Negative Cash Flow

Inability to generate positive cash flow raises concerns about liquidity and the capacity to sustain operations without external financing.

Aowei Holding Limited Business Overview & Revenue Model

Company Description

Aowei Holding Limited, through its subsidiaries, engages in the exploration, mining, processing, and trading of iron ore products in the People's Republic of China. The company's principal products include iron ores, preliminary concentrates, and iron ore concentrates. It owns and operates four iron ore mines, including Gufen Mine, Wang'ergou Mine, Shuanmazhuang Mine, and Zhijiazhuang Mine located in Laiyuan County, Hebei Province. The company was formerly known as Hengshi Mining Investments Limited and changed its name to Aowei Holding Limited in November 2017. Aowei Holding Limited was founded in 2004 and is based in Beijing, the People's Republic of China.

How the Company Makes Money

Aowei Holding Limited generates revenue through multiple streams, primarily from its software development and IT services. The company engages in contracts with businesses to develop customized software solutions, which includes ongoing maintenance and support services. Additionally, Aowei earns income from cloud computing services, providing clients with scalable infrastructure and applications. Strategic partnerships with technology providers and government agencies also play a crucial role in its revenue generation, as these collaborations often lead to large-scale projects and contracts that contribute significantly to the company's earnings.

Aowei Holding Limited Financial Statement Overview

Summary

Aowei Holding Limited faces significant financial challenges, with declining revenue, profitability, and cash flows. The company has experienced consistent net losses, increasing leverage, and shrinking equity, posing risks to financial stability. Improving operational efficiency and cash flow generation will be crucial for future financial health and growth potential.

Income Statement

The income statement shows a challenging financial performance with declining revenues over the past three years, from 2021's 1.19 billion to 2024's 645.66 million. The company has been experiencing significant losses with negative net income for the recent years, particularly a sharp decline in 2024 with a net loss of 289.62 million. The gross profit margin decreased from 44% in 2021 to 11.9% in 2024, indicating reduced profitability. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

Aowei Holding Limited's balance sheet reveals a moderate financial position. The debt-to-equity ratio increased from 0.43 in 2019 to 1.27 in 2024, indicating rising leverage and financial risk. Stockholders' equity has decreased, affecting the equity ratio, which dropped from 56.6% in 2019 to 37% in 2024. The return on equity has been negative in recent years, reflecting ongoing losses. The overall asset base has contracted, suggesting potential challenges in asset utilization.

Cash Flow

Cash flow analysis shows a decline in operating cash flows, with 2024 reporting zero operating and free cash flows, highlighting cash generation challenges. The operating cash flow to net income ratio is not calculable due to negative net income. Historical free cash flows have been inconsistent, with significant negative free cash flow in recent periods, indicating potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	595.07M	645.66M	667.37M	937.75M	1.19B	567.98M
Gross Profit	35.09M	76.92M	99.18M	163.70M	417.24M	94.09M
EBITDA	-77.74M	-34.00M	-436.77M	67.68M	322.79M	-11.51M
Net Income	-314.66M	-289.62M	-549.14M	60.76M	203.14M	-70.57M
Balance Sheet
Total Assets	1.79B	1.86B	2.20B	2.42B	2.51B	2.33B
Cash, Cash Equivalents and Short-Term Investments	13.92M	34.65M	34.48M	56.09M	104.07M	20.21M
Total Debt	870.50M	871.99M	913.70M	515.91M	561.85M	611.67M
Total Liabilities	1.18B	1.17B	1.24B	910.06M	1.05B	1.08B
Stockholders Equity	611.95M	687.61M	965.60M	1.51B	1.45B	1.25B
Cash Flow
Free Cash Flow	117.19M	119.81M	-100.05M	26.42M	-140.63M	-155.31M
Operating Cash Flow	159.55M	160.15M	53.34M	193.51M	531.85M	214.11M
Investing Cash Flow	-57.87M	-58.96M	-417.63M	-168.83M	-364.37M	-669.29M
Financing Cash Flow	-141.51M	-100.93M	342.73M	-73.05M	-83.56M	14.15M

Aowei Holding Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.32
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1370, the sentiment is Negative. The current price of 0.32 is below the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.29, and below the 200-day MA of 0.32, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.27 is Neutral, neither overbought nor oversold. The STOCH value of 31.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1370.

Aowei Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1370	51 Neutral	HK$457.89M	-1.34	-41.19%	―	-6.51%	41.00%
2237	44 Neutral	HK$576.00M	-65.45	-1.88%	―	-23.72%	-196.49%
0159	41 Neutral	HK$788.82M	-22.97	-7.49%	―	―	-164.29%
0433	41 Neutral	HK$1.14B	-3.58	-4702.63%	―	0.41%	83.35%
6128	38 Underperform	HK$200.50M	-0.99	-23.14%	―	-27.07%	47.86%