Aowei Holding Limited (1370) AI Stock Analysis

• Market Cap: HK$474.25M
• Dividend Yield: N/A
• Average Volume (3M): 391.93K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.07
• Revenue Growth: -5.27%
• EPS Growth: 47.34%
• Country: HK
• Employees: 759
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Industrial Materials
• EPS (TTM): -0.16
• Shares Outstanding: 1,635,330,000
• 10 Day Avg. Volume: 97,000
• 30 Day Avg. Volume: 391,933
• PEG Ratio: <0.01
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.78
• 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: 42 Neutral
• Price Target: HK$0.50 ▲(78.57%Upside)

Aowei Holding Limited receives a low overall score due to significant financial performance challenges, including declining revenue and profitability, which are exacerbated by negative cash flow and increasing leverage. The technical analysis indicates a bearish trend, with the stock trading below key moving averages. Valuation metrics are unfavorable, highlighted by a negative P/E ratio and no dividend yield, further diminishing investor confidence.

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 primarily through the sale of iron ore products. The company's revenue model is centered around extracting iron ore from its mining operations, processing the ore to enhance its quality, and then selling the processed ore to steel manufacturers. The demand for steel, influenced by global economic conditions and infrastructure development, plays a critical role in the company's earnings. Additionally, Aowei Holding Limited may engage in strategic partnerships with other mining and steel companies to optimize its supply chain and expand its market reach, further contributing to its revenue streams.

Aowei Holding Limited Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenues and profitability. The income statement shows negative net income and decreasing gross margins. The balance sheet indicates rising leverage and financial risk with a higher debt-to-equity ratio. Cash flow analysis reveals zero operating and free cash flows in 2024, highlighting liquidity risks.

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

Aowei Holding Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 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:1370, the sentiment is Neutral. The current price of 0.28 is above the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.34, and below the 200-day MA of 0.57, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of 55.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1370.

Aowei Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2237	48 Neutral	HK$536.00M	60.53	-2.83%	―	-30.01%	-159.44%
Sector *	44 Neutral	AU$1.43B	-6.04	-40.74%	3.91%	-3.45%	-41.77%
1370	42 Neutral	HK$474.25M	―	-35.00%	―	-5.27%	47.34%
0433	42 Neutral	HK$425.40M	―	-9999.00%	―	-27.61%	84.83%
0159	36 Underperform	€798.10M	―	-4.73%	―	―	39.02%

Aowei Holding Limited Corporate Events

Aowei Holding Limited Updates Nomination Committee

Aowei Holding Limited has announced changes to its Nomination Committee in compliance with the revised Corporate Governance Code set to be effective from July 2025. The company has appointed Ms. Chen Lixian and Mr. Ge Xinjian as new members of the committee, which now consists of five members, including the chairman Mr. Li Yanjun.

Aowei Holding Limited Announces Board Composition and Committee Assignments

Aowei Holding Limited has announced the composition of its board of directors, which includes both executive and independent non-executive directors. The board has established three committees: Audit, Nomination, and Remuneration, with specific directors assigned as chairmen and members. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic direction and stakeholder engagement.

Aowei Holding Limited Revises Nomination Committee Structure

Aowei Holding Limited has revised the terms of reference for its Nomination Committee, which is responsible for reviewing the structure of the Board and making recommendations for any proposed changes. The Committee will consist of at least three directors, with a majority being independent non-executive directors, and must include at least one director of a different gender. This move aims to ensure a diverse and balanced board structure, which could enhance the company’s governance and decision-making processes.

Aowei Holding Limited Successfully Passes All AGM Resolutions

Aowei Holding Limited announced that all resolutions proposed at its Annual General Meeting held on May 23, 2025, were successfully passed. The resolutions included the adoption of audited consolidated accounts, re-election of directors, re-appointment of auditors, and granting of mandates to directors for share allotment and buybacks. This outcome reflects strong shareholder support and positions the company for continued operational and strategic initiatives.

Aowei Holding Limited Announces 2025 Annual General Meeting

Aowei Holding Limited has announced its upcoming annual general meeting scheduled for May 23, 2025, in Beijing. The meeting will address several key resolutions, including the re-election of executive and independent non-executive directors, the re-appointment of auditors, and the authorization for directors to issue additional shares. These resolutions are aimed at strengthening the company’s governance and operational capabilities, potentially impacting its market positioning and shareholder value.