tiprankstipranks
Trending News
More News >
Huaxi Holdings Co. Ltd. (HK:1689)
:1689
Hong Kong Market
Advertisement

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

Compare
0 Followers

Top Page

HK:1689

Huaxi Holdings Co. Ltd.

(1689)

Rating:41Neutral
Price Target:
HK$0.50
▼(-3.85% Downside)
The overall stock score reflects significant financial challenges, including declining revenue and profitability, which are the most impactful factors. Technical analysis indicates neutral to bearish momentum, while valuation metrics highlight financial distress. The absence of earnings call data and corporate events limits additional insights.

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 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 MoneyHuaxi 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
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 Price0.52
Price Trends
50DMA
0.59
Negative
100DMA
0.63
Negative
200DMA
0.60
Negative
Market Momentum
MACD
-0.02
Positive
RSI
27.42
Positive
STOCH
14.10
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 0.52 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.59, and below the 200-day MA of 0.60, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 27.42 is Positive, neither overbought nor oversold. The STOCH value of 14.10 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 (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
HK$746.21M40.4113.20%0.71%-2.08%-23.18%
57
Neutral
HK$25.99B4.36-4.73%5.52%-0.90%-51.66%
54
Neutral
HK$1.63B72.921.47%1.39%-47.79%-78.74%
46
Neutral
HK$14.40M
11.10%74.59%
46
Neutral
HK$859.81M416.67-3.49%2.80%4.56%-186.08%
41
Neutral
HK$385.79M-42.10%-7.48%-168.99%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1689
Huaxi Holdings Co. Ltd.
0.47
-0.14
-22.95%
HK:8291
Wan Cheng Metal Packaging Company Limited
0.10
0.00
0.00%
HK:6898
China Aluminum Cans Holdings Ltd.
0.78
0.10
14.71%
HK:1820
Pacific Millennium Packaging Group Corp.
2.80
-3.30
-54.10%
HK:1626
Jia Yao Holdings Limited
2.77
-0.03
-1.07%

Huaxi Holdings Co. Ltd. Corporate Events

Huaxi Holdings Clarifies Share Option Scheme Details in 2024 Annual Report
Aug 1, 2025

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.

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.

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: Aug 15, 2025