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

• Market Cap: HK$319.15M
• Dividend Yield: N/A
• Average Volume (3M): 307.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.50 ▲(13.64% Upside)

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

Strong Capital Structure

A low debt-to-equity ratio suggests that Huaxi Holdings has a strong capital structure, providing financial stability and flexibility to manage its operations and invest in growth opportunities without the burden of high debt.

Strategic Partnerships

By maintaining strategic partnerships, Huaxi Holdings can secure long-term contracts and ensure a steady revenue stream, which strengthens its market position and enhances its competitive advantage in the cigarette packaging industry.

Focus on Innovation

Huaxi Holdings' emphasis on innovation and quality in its products allows it to meet diverse client needs, attract new clients, and retain existing ones, supporting long-term growth and market competitiveness.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in maintaining market share and demand for products, which can impact long-term financial health and operational sustainability.

Negative Profitability

A negative net profit margin reflects operational inefficiencies and inability to generate profits, which can hinder the company's ability to reinvest in growth and innovation, affecting its long-term viability.

Weak Cash Flow

Weak cash flow generation limits Huaxi Holdings' ability to fund operations, invest in growth, and manage financial obligations, posing a risk to its long-term financial stability and operational flexibility.

Huaxi Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

Huaxi Holdings Co. Ltd. (1689) is a diversified investment holding company based in Hong Kong, primarily engaged in the development and management of real estate properties. The company operates across several sectors including residential, commercial, and industrial real estate, focusing on providing high-quality living and working environments. With a commitment to sustainable development, Huaxi Holdings also invests in various other sectors, enhancing its portfolio through strategic partnerships and innovative projects.

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: 0.44
• 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 0.44 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.45, and below the 200-day MA of 0.58, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.16 is Neutral, neither overbought nor oversold. The STOCH value of 64.81 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%
6898	58 Neutral	HK$670.27M	42.01	13.20%	0.58%	-2.08%	-23.18%
1626	49 Neutral	HK$1.65B	-149.46	-7.35%	―	-82.87%	-110.99%
1820	46 Neutral	HK$748.57M	―	-5.51%	3.20%	3.51%	-950.83%
8291	45 Neutral	HK$13.60M	3.08	―	―	-44.08%	―
1689	41 Neutral	HK$319.15M	-3.47	-36.51%	―	-0.28%	-70.30%
2320	41 Neutral	HK$67.86M	―	-12.11%	―	-23.51%	-5.26%

Huaxi Holdings Co. Ltd. Corporate Events

Huaxi Holdings Reports Improved Interim Financial Results for 2025

Huaxi Holdings Company Limited reported its interim financial results for the six months ending June 30, 2025. The company experienced a 4.9% increase in revenue to HK$65.70 million and a significant 120.3% rise in gross profit to HK$19.89 million. The operating loss decreased by 92.6% to HK$1.57 million, and the loss attributable to owners reduced by 89.0% to HK$2.30 million. Despite these improvements, the company did not propose an interim dividend for the period. These results indicate a positive turnaround in financial performance, suggesting improved operational efficiency and cost management, which may enhance the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (HK:1689) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Huaxi Holdings Co. Ltd. stock, see the HK:1689 Stock Forecast page.

Huaxi Holdings Projects Significant Reduction in Loss for H1 2025

Huaxi Holdings Co. Ltd. announced an estimated decrease in loss for the first half of 2025, projecting a loss of HK$2-3 million compared to HK$21 million in the same period of 2024. This improvement is attributed to gains in financial assets due to stabilized securities markets and a turnaround in its environmental treatment business, which moved from a gross loss to a profit as construction projects reached the settlement stage.

The most recent analyst rating on (HK:1689) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Huaxi Holdings Co. Ltd. stock, see the HK:1689 Stock Forecast page.

Huaxi Holdings Schedules Board Meeting for Interim Results

Huaxi Holdings Company Limited has announced a board meeting scheduled for 29 August 2025 to consider and approve the interim financial results for the first half of 2025. The meeting will also discuss the potential recommendation of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Huaxi Holdings Clarifies Share Option Scheme Details in 2024 Annual Report

Huaxi Holdings Co. Ltd. has issued a supplemental announcement regarding its 2024 Annual Report, specifically about its Share Option Scheme. The company disclosed that the number of options available for grant under the New Share Option Scheme is 70,143,000 shares, representing 10% of the issued shares. This announcement clarifies the vesting period for options and confirms that the information does not alter the previously disclosed details in the annual report. This move may impact stakeholders by providing clarity on the company’s equity-linked agreements and ensuring transparency in its operations.