Huaxi Holdings Co. Ltd. (1689) AI Stock Analysis

• Market Cap: HK$392.80M
• Dividend Yield: N/A
• Average Volume (3M): 366.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -7.48%
• EPS Growth: -168.99%
• Country: HK
• Employees: 250
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Packaging & Containers
• EPS (TTM): -0.16
• Shares Outstanding: 701,430,000
• 10 Day Avg. Volume: 387,800
• 30 Day Avg. Volume: 366,933
• PEG Ratio: 0.23
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.62
• 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: HK$0.50
• Price Target Upside: -10.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: HK$0.50 ▼(-10.71%Downside)

The most significant factor is the company's poor financial performance, with declining revenue, negative profitability, and inconsistent cash flows. The technical analysis suggests bearish market sentiment, and valuation metrics indicate potential overvaluation. The combination of these factors leads to a low overall stock score.

Huaxi Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

Huaxi Holdings Co. Ltd. (1689) is a Hong Kong-based investment holding company primarily engaged in the research, development, production, and sale of cigarette packaging materials. The company operates through its subsidiaries and focuses on providing high-quality packaging solutions to the tobacco industry, leveraging advanced technologies and innovative designs to cater to the diverse needs of its clients.

How the Company Makes Money

Huaxi Holdings Co. Ltd. generates revenue primarily through the manufacture and sale of cigarette packaging products. The company's key revenue streams include the production of inner frame paper, cigarette box paper, and transfer paper, which are essential components in cigarette packaging. By maintaining strong relationships with major tobacco companies, Huaxi secures long-term contracts that ensure a steady flow of income. Additionally, the company's focus on quality and innovation helps it maintain a competitive edge in the market, allowing it to attract new clients and retain existing ones. Strategic partnerships and a robust supply chain further enhance its profitability and market presence.

Huaxi Holdings Co. Ltd. Financial Statement Overview

Summary

The company is experiencing significant financial distress, with a dramatic decline in revenue and profitability. Gross and net profit margins are negative, and cash flows are inconsistent, reflecting serious operational challenges. Although debt levels are manageable, the overall financial health is concerning.

Income Statement

The company has experienced a significant decline in revenue from 2019 to 2024, with Total Revenue decreasing by over 60%. Gross Profit Margin has fallen drastically from 37.8% in 2019 to just 5.1% in 2024, indicating shrinking profitability. The Net Profit Margin has been negative in recent years, reaching -77.1% in 2024, further highlighting financial distress. EBIT and EBITDA margins also reflect a downward trend, both turning negative by 2024.

Balance Sheet

The debt-to-equity ratio remains relatively low, indicating manageable levels of debt compared to equity. However, the company's Stockholders' Equity has declined over the years. The Equity Ratio is still above 50%, suggesting a stable asset base, but the decreasing trend in total assets and equity poses risks.

Cash Flow

Free Cash Flow has shown volatility, with a significant drop in recent years. Despite a positive Operating Cash Flow in 2024, the Operating Cash Flow to Net Income ratio indicates challenges in converting income to cash. Free Cash Flow to Net Income ratio is positive, but overall cash flows are inconsistent, reflecting operational struggles.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.77M	155.39M	194.54M	404.56M	373.39M
Gross Profit	7.38M	33.30M	47.06M	115.70M	153.10M
EBITDA	-107.54M	-31.48M	-47.09M	60.79M	132.67M
Net Income	-110.77M	-41.18M	-53.37M	37.00M	94.28M
Balance Sheet
Total Assets	350.88M	488.50M	577.27M	732.98M	646.63M
Cash, Cash Equivalents and Short-Term Investments	38.99M	53.21M	99.42M	138.36M	170.34M
Total Debt	13.17M	25.75M	24.96M	47.43M	37.67M
Total Liabilities	153.27M	173.30M	216.01M	282.16M	189.69M
Stockholders Equity	204.35M	321.79M	367.49M	457.34M	462.72M
Cash Flow
Free Cash Flow	17.19M	-2.32M	25.44M	36.77M	-17.25M
Operating Cash Flow	17.19M	5.49M	54.89M	38.84M	-6.86M
Investing Cash Flow	12.08M	-37.59M	-93.52M	-16.82M	-23.66M
Financing Cash Flow	-14.53M	-2.15M	20.23M	-58.35M	-48.35M

Huaxi Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.56
• 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:1689, the sentiment is Negative. The current price of 0.56 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.63, and below the 200-day MA of 0.59, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 41.13 is Neutral, neither overbought nor oversold. The STOCH value of 56.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1689.

Huaxi Holdings Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6898	64 Neutral	HK$774.91M	41.97	17.56%	0.72%	-3.27%	-16.88%
Sector *	57 Neutral	HK$25.35B	4.17	-2.03%	5.82%	-0.23%	-68.02%
1626	52 Neutral	HK$1.68B	70.31	1.47%	1.39%	-47.79%	-78.74%
1820	46 Neutral	HK$1.05B	416.67	-3.49%	2.29%	4.56%	-186.08%
1689	40 Underperform	HK$392.80M	―	-42.10%	―	-7.48%	-168.99%
8291	40 Underperform	HK$13.76M	―		―	11.10%	74.59%

Huaxi Holdings Co. Ltd. Corporate Events

Huaxi Holdings Announces Unanimous Approval of AGM Resolutions

Huaxi Holdings Company Limited, incorporated in the Cayman Islands, announced the successful passing of all resolutions at its Annual General Meeting held on June 25, 2025. The resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting of mandates related to share issuance and repurchase. All resolutions received unanimous support, reflecting strong shareholder confidence in the company’s governance and strategic direction.

Huaxi Holdings Announces Board Composition and Roles

Huaxi Holdings Company Limited has announced the composition of its board of directors and their respective roles within the company. The board includes both executive and independent non-executive directors, with Mr. Zheng Andy Yi Sheng serving as Chairman and CEO. The announcement also details the membership of four board committees, highlighting the leadership and participation of various directors in these committees. This update is significant as it outlines the governance structure of the company, which can impact its strategic direction and decision-making processes.

Huaxi Holdings Revamps Nomination Committee for Enhanced Governance

Huaxi Holdings Company Limited has announced changes to its Nomination Committee, appointing Ms. Zheng Catherine Jia Lin and Mr. Cai Xiaowen as new members. This decision aligns with upcoming amendments to the corporate governance code and aims to enhance the board’s effectiveness and diversity, thereby improving the company’s corporate governance practices.

Huaxi Holdings Announces Resignation of Non-Executive Director

Huaxi Holdings Company Limited, a company incorporated in the Cayman Islands, has announced the resignation of Mr. Hao Jiming from his position as a non-executive director, effective April 30, 2025. The resignation is due to Mr. Hao’s personal arrangements, and he has confirmed no disagreements with the board. The board expressed gratitude for his contributions during his tenure.

Huaxi Holdings Announces Board Composition and Roles

Huaxi Holdings Co. Ltd. has announced the composition of its board of directors and their respective roles within the company. This update includes the listing of executive and independent non-executive directors, as well as their membership in various board committees, which could impact the company’s governance and strategic direction.