Aowei Holding Limited (1370) AI Stock Analysis

• Market Cap: HK$376.13M
• Dividend Yield: N/A
• Average Volume (3M): 90.63K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.06
• Revenue Growth: -5.27%
• EPS Growth: 47.34%
• Country: HK
• Employees: 759
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Industrial Materials
• EPS (TTM): -0.16
• Shares Outstanding: 1,635,330,000
• 10 Day Avg. Volume: 255,000
• 30 Day Avg. Volume: 90,633
• PEG Ratio: -0.28
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.72
• 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: 41 Neutral
• Price Target: ―

Aowei Holding Limited's stock score is primarily affected by poor financial performance, with declining revenues and profitability, increasing leverage, and liquidity issues. Technical analysis suggests a bearish trend, with potential for short-term correction but overall weakness. The negative P/E ratio and lack of dividend yield further weigh on the valuation, making it less attractive to investors. Improving operational efficiency and cash flow generation are crucial for future growth and stability.

Aowei Holding Limited Business Overview & Revenue Model

Company Description

Aowei Holding Limited (1370) is a Hong Kong-based investment holding company primarily engaged in the mining and processing of iron ore. The company operates through its subsidiaries, focusing on the exploration, mining, processing, and sale of iron ore products. Aowei Holding Limited primarily serves the steel manufacturing industry, providing raw materials essential for steel production.

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

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
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
	EBIT
-63.18M	-44.11M	56.55M	304.90M	-38.65M
	EBITDA
-34.00M	-436.77M	67.68M	322.79M	-11.51M
	Net Income Common Stockholders
-289.62M	-549.14M	60.76M	203.14M	-70.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.65M	34.48M	56.09M	104.07M	20.21M
	Total Assets
1.86B	2.20B	2.42B	2.51B	2.33B
	Total Debt
871.99M	913.70M	515.91M	561.85M	611.67M
	Net Debt
837.35M	879.22M	459.82M	457.79M	591.46M
	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
0.00	-100.05M	26.42M	-140.63M	-155.31M
	Operating Cash Flow
0.00	53.34M	193.51M	531.85M	214.11M
	Investing Cash Flow
0.00	-417.63M	-168.83M	-364.37M	-669.29M
	Financing Cash Flow
0.00	342.73M	-73.05M	-83.56M	14.15M

Aowei Holding Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 0.23 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.42, and below the 200-day MA of 0.59, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 14.45 is Positive, neither overbought nor oversold. The STOCH value of 31.23 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
2600	80 Outperform	$120.33B	6.63	20.63%	3.40%	2.84%	―
1157	67 Neutral	$65.11B	13.55	6.96%	5.62%	-5.32%	-2.93%
1050	64 Neutral	HK$1.62B	8.18	20.43%	12.50%	29.30%	-1.21%
1231	53 Neutral	€872.00M	131.58	-0.96%	―	-41.26%	-110.87%
Sector *	51 Neutral	$2.01B	-1.27	-21.11%	5.15%	2.92%	-30.46%
1370	41 Neutral	HK$376.13M	―	-35.00%	―	-5.27%	47.34%

Aowei Holding Limited Corporate Events

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.

Aowei Holding Limited Reports Reduced Losses Amid Revenue Decline

Aowei Holding Limited reported a revenue of approximately RMB645.7 million for the year ended December 31, 2024, marking a 3.3% decrease from the previous year. The company’s gross profit also declined by 22.4% to RMB76.9 million. Despite these decreases, the company’s loss for the year reduced significantly to RMB289.6 million from RMB549.1 million the previous year, indicating some improvement in financial performance. The announcement highlights a challenging financial period for Aowei, with implications for stakeholders regarding the company’s efforts to stabilize and improve its financial health.

Aowei Holding Limited Issues Profit Warning Amid Environmental Challenges

Aowei Holding Limited has issued a profit warning, indicating an expected loss of up to RMB350.0 million for the year ending December 31, 2024. This anticipated loss is attributed to several factors, including an impairment loss on property, plant, and equipment, reduced production and sales volumes due to heavy rain disasters, and decreased selling prices of gravel materials. The company’s operations were notably impacted by environmental challenges and infrastructure damage, leading to a temporary suspension of production. Stakeholders are advised to exercise caution as the financial results are preliminary and subject to adjustments.

Aowei Holding Limited Schedules Board Meeting for Annual Results and Dividend Consideration

Aowei Holding Limited has announced that its board of directors will convene on March 27, 2025, to consider and approve the company’s annual results for the year ending December 31, 2024. The meeting will also address the potential recommendation of a final dividend. This announcement is significant as it outlines the company’s timeline for financial reporting and potential dividend distribution, which are key indicators of the company’s financial health and shareholder value.