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Huaxi Holdings Co. Ltd. (HK:1689)
:1689
Hong Kong Market

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

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HK

Huaxi Holdings Co. Ltd.

(1689)

Rating:39Underperform
Price Target:
HK$0.50
▼(-20.63%Downside)
The overall stock score reflects significant financial challenges, including a severe decline in revenue and profitability, inconsistent cash flows, and a negative net profit margin. The technical indicators suggest a bearish trend, and the negative P/E ratio signals valuation concerns.

Huaxi Holdings Co. Ltd. (1689) vs. iShares MSCI Hong Kong ETF (EWH)

Huaxi Holdings Co. Ltd. Business Overview & Revenue Model

Company DescriptionHuaxi Holdings Co. Ltd. (1689) is a company primarily engaged in the production and sale of cigarette packaging materials. The company operates in the manufacturing sector, focusing on the design, production, and distribution of high-quality cigarette packaging products to major tobacco companies. With a strong presence in the Chinese market, Huaxi Holdings emphasizes innovation and quality in its offerings.
How the Company Makes MoneyHuaxi Holdings Co. Ltd. generates revenue through the manufacturing and sale of cigarette packaging materials. The company's key revenue streams come from contracts with major tobacco companies, providing them with customized and high-quality packaging solutions. Huaxi leverages its expertise in design and production to maintain long-term partnerships with its clients, ensuring a steady flow of income. Additionally, the company's focus on innovation allows it to offer unique packaging designs that cater to the evolving needs of its customers, further solidifying its market position.

Huaxi Holdings Co. Ltd. Financial Statement Overview

Summary
Huaxi Holdings Co. Ltd. faces significant financial challenges with a drastic decline in revenue and profitability, consistent negative net profit margins, and inconsistent cash flows. Despite a manageable debt level, the overall financial health is concerning.
Income Statement
25
Negative
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
40
Negative
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue143.77M155.39M194.54M404.56M373.39M
Gross Profit7.38M33.30M47.06M115.70M153.10M
EBITDA-107.54M-31.48M-47.09M60.79M132.67M
Net Income-110.77M-41.18M-53.37M37.00M94.28M
Balance Sheet
Total Assets350.88M488.50M577.27M732.98M646.63M
Cash, Cash Equivalents and Short-Term Investments38.99M53.21M99.42M138.36M170.34M
Total Debt13.17M25.75M24.96M47.43M37.67M
Total Liabilities153.27M173.30M216.01M282.16M189.69M
Stockholders Equity204.35M321.79M367.49M457.34M462.72M
Cash Flow
Free Cash Flow17.19M-2.32M25.44M36.77M-17.25M
Operating Cash Flow17.19M5.49M54.89M38.84M-6.86M
Investing Cash Flow12.08M-37.59M-93.52M-16.82M-23.66M
Financing Cash Flow-14.53M-2.15M20.23M-58.35M-48.35M

Huaxi Holdings Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.63
Price Trends
50DMA
0.66
Negative
100DMA
0.66
Negative
200DMA
0.60
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
42.35
Neutral
STOCH
16.67
Positive
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 0.63 is below the 20-day moving average (MA) of 0.65, below the 50-day MA of 0.66, and above the 200-day MA of 0.60, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.35 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
HK$755.77M40.9317.56%0.71%-3.27%-16.88%
56
Neutral
HK$24.88B3.87-2.03%6.54%-0.32%-67.68%
56
Neutral
HK$1.20B416.67-3.49%2.00%4.56%-186.08%
52
Neutral
HK$1.69B71.351.47%1.39%-47.79%-78.74%
39
Underperform
HK$441.90M-42.10%-7.48%-168.99%
38
Underperform
HK$11.36M
11.10%74.59%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1689
Huaxi Holdings Co. Ltd.
0.63
-0.04
-5.97%
HK:8291
Wan Cheng Metal Packaging Company Limited
0.06
-0.04
-40.00%
HK:6898
China Aluminum Cans Holdings Ltd.
0.80
0.21
35.59%
HK:1820
Pacific Millennium Packaging Group Corp.
4.00
-2.10
-34.43%
HK:1626
Jia Yao Holdings Limited
2.74
-0.17
-5.84%

Huaxi Holdings Co. Ltd. Corporate Events

Huaxi Holdings Announces Unanimous Approval of AGM Resolutions
Jun 25, 2025

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
Jun 25, 2025

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
Jun 25, 2025

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
Apr 30, 2025

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
Apr 30, 2025

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.

Huaxi Holdings Announces AGM and Key Resolutions
Apr 25, 2025

Huaxi Holdings Co. Ltd. has announced the details of its upcoming Annual General Meeting (AGM) scheduled for June 25, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the company’s audited financial statements for the year ending December 31, 2024, the re-election of directors, and the re-appointment of PricewaterhouseCoopers as auditors. Additionally, the AGM will consider granting the board of directors the authority to issue new shares, subject to certain conditions, which could impact the company’s capital structure and shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025