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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:48Neutral
Price Target:
HK$0.50
▼(-25.37%Downside)
Huaxi Holdings Co. Ltd. shows significant financial distress with declining revenue and profitability, impacting the stock's attractiveness. Technical indicators suggest potential bearish momentum. The valuation is unappealing due to a negative P/E ratio. Improvement in financial performance is crucial for better prospects.

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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
143.77M155.39M194.54M404.56M373.39M
Gross Profit
7.38M33.30M47.06M115.70M153.10M
EBIT
-119.89M-42.86M-375.00K67.92M112.92M
EBITDA
-107.54M-31.48M-47.09M60.79M132.67M
Net Income Common Stockholders
-110.77M-41.18M-53.37M37.00M94.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
38.99M53.21M99.42M138.36M170.34M
Total Assets
350.88M488.50M577.27M732.98M646.63M
Total Debt
13.17M25.75M24.96M47.43M37.67M
Net Debt
-12.65M13.40M-22.31M-23.17M-65.61M
Total Liabilities
153.27M173.30M216.01M282.16M189.69M
Stockholders Equity
204.35M321.79M367.49M457.34M462.72M
Cash FlowFree Cash Flow
17.19M-2.32M25.44M36.77M-17.25M
Operating Cash Flow
17.19M5.49M54.89M38.84M-6.86M
Investing Cash Flow
12.08M-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
Positive
Last Price0.67
Price Trends
50DMA
0.67
Positive
100DMA
0.64
Positive
200DMA
0.60
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
51.97
Neutral
STOCH
62.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1689, the sentiment is Positive. The current price of 0.67 is above the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.67, and above the 200-day MA of 0.60, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 62.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1689.

Huaxi Holdings Co. Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$13.50B28.043.13%0.43%1.31%67.13%
72
Outperform
HK$225.00M4.198.43%6.67%11.39%-25.31%
72
Outperform
€27.00B8.5819.19%3.66%5.48%38.91%
69
Neutral
$119.11B5.5122.05%6.88%2.87%
62
Neutral
$6.82B11.052.80%4.32%2.67%-24.92%
48
Neutral
HK$469.96M-42.10%-7.48%-168.99%
28
Underperform
HK$445.64M
4.26%3.24%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1689
Huaxi Holdings Co. Ltd.
0.67
-0.09
-11.84%
HK:2226
Honworld Group Ltd.
0.77
0.20
35.09%
HK:1582
CR Construction Group Holdings Limited
0.45
0.05
12.50%
HK:1171
Yankuang Energy Group Company Limited Class H
8.47
-2.60
-23.46%
HK:1258
China Nonferrous Mining Corp. Ltd.
6.92
0.33
5.06%
HK:1316
Nexteer Automotive Group
5.41
1.59
41.73%

Huaxi Holdings Co. Ltd. Corporate Events

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.

Huaxi Holdings Reports Significant Financial Losses for 2024
Mar 31, 2025

Huaxi Holdings Co. Ltd. reported a challenging financial year ending December 31, 2024, with a 7.5% decrease in revenue to HK$143.77 million and a significant 77.9% drop in gross profit to HK$7.38 million. The company faced an operating loss increase of 179.8% to HK$119.89 million, and the loss attributable to owners rose by 169.0% to HK$110.77 million. No final dividend was proposed for the year. These results highlight substantial financial difficulties, impacting the company’s operations and potentially affecting stakeholder confidence.

Huaxi Holdings Establishes Nomination Committee to Enhance Governance
Mar 31, 2025

Huaxi Holdings Company Limited, incorporated in the Cayman Islands, has established a Nomination Committee as part of its corporate governance structure. The committee, which will consist of at least three members with a majority being independent non-executive directors, aims to ensure compliance with the Hong Kong Stock Exchange’s listing rules. The committee’s responsibilities include regular meetings, which will be attended by independent non-executive directors and other advisors as needed, to leverage their diverse expertise and backgrounds in the decision-making process.

Huaxi Holdings Issues Profit Warning Amid Increased Losses
Mar 27, 2025

Huaxi Holdings Co. Ltd. has issued a profit warning, anticipating a significant increase in losses for the year ending December 2024, with expected losses between HK$100 million and HK$122 million compared to HK$41 million in the previous year. The increase in losses is attributed to higher impairment losses on financial and contract assets, challenges in the environmental restoration business due to fewer new projects and increased maintenance costs, and decreased revenue from cigarette packaging products amid intense market competition.

Huaxi Holdings Schedules Board Meeting for Year-End Results
Mar 19, 2025

Huaxi Holdings Company Limited has announced that its board of directors will hold a meeting on March 31, 2025, to consider and approve the final results for the fiscal year ending December 31, 2024. The meeting will also discuss the recommendation of a final dividend, which could have implications for the company’s financial strategy and shareholder returns.

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.