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

• Market Cap: HK$273.56M
• Dividend Yield: N/A
• Average Volume (3M): 307.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -0.28%
• EPS Growth: -70.30%
• Country: HK
• Employees: 250
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): N/A
• Shares Outstanding: 701,430,000
• 10 Day Avg. Volume: 274,400
• 30 Day Avg. Volume: 307,200
• PEG Ratio: -0.02
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 20.81
• 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: 41 Neutral
• Price Target: HK$0.37 ▼(-11.43% Downside)

Huaxi Holdings Co. Ltd. is facing significant financial difficulties, with declining revenues and profitability being the most impactful factors. The technical analysis indicates a bearish trend, and the valuation metrics are poor, with a negative P/E ratio and no dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Conservative leverage

Very low debt-to-equity provides durable financial flexibility and lower interest burden, helping the company fund development cycles, withstand real estate market softness, and pursue opportunistic projects or partnerships without immediate refinancing pressure.

Diversified real estate income

Revenue mix spanning sales, leasing, property management fees and investment/JV income reduces concentration risk and supports more stable cash flows over time; recurring leasing and service fees can temper cycles in unit sales.

Improving free cash flow trend

Positive TTM free cash flow growth indicates early recovery in cash generation capacity, which can be applied to project funding or working capital needs and reduces reliance on external financing if the trend persists.

Negative Factors

Falling revenues

Sustained revenue decline reduces scale and weakens the firm's ability to absorb fixed costs, undermining margins and future development funding; without stabilizing sales, growth initiatives and JV attractiveness suffer over the medium term.

Deep negative margins

A very large negative net margin signals core operations are loss-making, eroding equity and limiting reinvestment capacity; reversing entrenched margin deterioration requires material operational fixes or higher pricing power to restore sustainable profitability.

Weak cash conversion

Low cash conversion means reported losses are translating into constrained liquidity; this raises the risk of requiring asset sales or external funding to support projects and operations, threatening medium-term execution and stability.

Huaxi Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

Huaxi Holdings Company Limited, an investment holding company, designs, manufactures, prints, and sells cigarette-related packaging materials in the People's Republic of China. The company offers inner frame, cigarette box frame, and tipping papers, as well as cigarette trade mark labels, cigarette paper boxes, and other products. It is also involved in the biological technology research and related products trading activities; provision of environmental treatment services, as well as environmental protection construction works; and agricultural science and technology related services. The company was founded in 1992 and is based in Central, Hong Kong.

How the Company Makes Money

Huaxi Holdings generates revenue primarily through the sale and leasing of real estate properties. The company earns income from residential and commercial developments by selling units to buyers and leasing spaces to tenants, ensuring a steady cash flow. Additionally, the company may engage in property management services, which contribute to its revenue through service fees. Key revenue streams also include investment income from its diversified portfolio, as well as potential joint ventures with other real estate developers or investors, which can enhance its market reach and financial performance.

Huaxi Holdings Co. Ltd. Financial Statement Overview

Summary

Huaxi Holdings Co. Ltd. is facing significant financial challenges, with declining revenues and profitability impacting overall performance. Despite a strong capital structure with low leverage, the company's inability to generate profits and cash flow from operations is concerning.

Income Statement

The company has experienced a significant decline in revenue and profitability over recent periods. The TTM data shows a negative net profit margin of -77.04%, indicating substantial losses. The gross profit margin has also decreased significantly from previous years, reflecting declining operational efficiency. Revenue growth has been inconsistent, with recent periods showing negative growth rates. Overall, the income statement reflects financial instability and declining performance.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.064, indicating conservative leverage. However, the return on equity is negative, reflecting the company's inability to generate profits from its equity base. The equity ratio remains stable, suggesting a strong capital structure. Despite low leverage, the negative ROE highlights profitability challenges.

Cash Flow

The cash flow statement indicates some improvement in free cash flow growth, with a positive growth rate in the TTM period. However, the operating cash flow to net income ratio is low, suggesting limited cash generation relative to reported losses. The free cash flow to net income ratio is positive, but overall cash flow performance remains weak due to ongoing losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	146.85M	143.77M	155.39M	194.54M	404.56M	373.39M
Gross Profit	18.24M	7.38M	33.30M	47.06M	115.70M	151.64M
EBITDA	-87.61M	-107.54M	-31.48M	-47.09M	60.79M	132.67M
Net Income	-92.07M	-110.77M	-41.18M	-53.37M	37.00M	94.28M
Balance Sheet
Total Assets	330.92M	350.88M	488.50M	577.27M	732.98M	646.63M
Cash, Cash Equivalents and Short-Term Investments	66.55M	38.99M	53.21M	99.42M	138.36M	170.34M
Total Debt	2.24M	13.17M	25.75M	24.96M	4.13M	37.67M
Total Liabilities	131.53M	153.27M	173.30M	216.01M	282.16M	189.69M
Stockholders Equity	206.27M	204.35M	321.79M	367.49M	457.34M	462.72M
Cash Flow
Free Cash Flow	17.73M	17.19M	-2.32M	25.44M	36.77M	-17.25M
Operating Cash Flow	17.61M	17.19M	5.49M	54.89M	38.84M	-6.86M
Investing Cash Flow	11.80M	12.08M	-37.59M	-93.52M	-16.82M	-23.66M
Financing Cash Flow	-28.18M	-14.53M	-2.15M	20.23M	-58.35M	-48.35M

Huaxi Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.42
• 50DMA: Negative
• 100DMA: Negative
• 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:1689, the sentiment is Negative. The current price of 0.42 is above the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.42, and below the 200-day MA of 0.53, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.79 is Neutral, neither overbought nor oversold. The STOCH value of 22.41 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
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1626	58 Neutral	HK$1.48B	-134.24	-7.35%	―	-82.87%	-110.99%
6898	58 Neutral	HK$660.83M	41.42	13.20%	0.59%	-2.08%	-23.18%
1820	46 Neutral	HK$751.58M	-24.49	-5.51%	3.20%	3.51%	-950.83%
8291	45 Neutral	HK$14.13M	3.20	―	―	-44.08%	―
2320	45 Neutral	HK$56.42M	-0.63	-12.11%	―	-23.51%	-5.26%
1689	41 Neutral	HK$273.56M	-2.97	-36.51%	―	-0.28%	-70.30%