China Wood International Holding Co., Limited (1822) AI Stock Analysis

• Market Cap: HK$148.03M
• Dividend Yield: N/A
• Average Volume (3M): 978.64K
• Price to Earnings (P/E): 1.1
• Beta (1Y): 0.62
• Revenue Growth: -17.96%
• EPS Growth: -95.06%
• Country: HK
• Employees: 25
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): >-0.01
• Shares Outstanding: 986,898,700
• 10 Day Avg. Volume: 2,231,650
• 30 Day Avg. Volume: 978,640
• PEG Ratio: -0.01
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -7.42
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: HK$0.17 ▲(10.00% Upside)

The overall stock score is primarily influenced by the company's challenging financial performance, which poses significant risks. The technical analysis shows positive momentum, but the stock is nearing overbought levels. The valuation is attractive due to a low P/E ratio, but the lack of a dividend yield is a downside for income investors.

Positive Factors

Innovation and Sustainability

A strong focus on innovation and sustainability can enhance competitive advantage and appeal to environmentally conscious markets, supporting long-term growth.

B2B Revenue Model

The B2B model provides stable revenue streams through long-term contracts and partnerships, reducing exposure to consumer market volatility.

International Market Presence

International market presence diversifies revenue sources and reduces dependency on any single market, enhancing resilience to regional economic fluctuations.

Negative Factors

High Leverage

High leverage increases financial risk and can limit the company's ability to invest in growth opportunities, affecting long-term stability.

Inconsistent Cash Flow

Inconsistent cash flow can hinder the company's ability to fund operations and invest in growth, posing a risk to financial health and sustainability.

Volatile Revenue

Revenue volatility can lead to unpredictable financial performance, making it challenging to plan for long-term growth and stability.

China Wood International Holding Co., Limited Business Overview & Revenue Model

Company Description

China Wood International Holding Co., Limited, an investment holding company, primarily engages in trading furniture wood in the People's Republic of China and Hong Kong. The company operates through four segments: Car Rental, Trading and Processing of Goods, Financing Services and Investments, and Others. The Car Rental segment engages in the provision of car rental services. The Trading and Processing of Goods segment trades in and processes furniture wood, such as red mahogany wood, yellow sandalwood, and other goods. The Financing Services and Investments segment is involved in money lending business through the provision of loans and financial investment holding services. The Others segment offers fund administration, public relations, and property investment services. It also provides champagne trading services. The company was formerly known as HongDa Financial Holding Limited and changed its name to China Wood International Holding Co., Limited in September 2020. The company was incorporated in 2009 and is based in Central, Hong Kong. China Wood International Holding Co., Limited is a subsidiary of Sino Merchant Car Rental Limited.

How the Company Makes Money

China Wood International generates revenue through the sale of its wood products, which include plywood, engineered wood, and other timber-related goods. The company's revenue model is primarily based on a B2B (business-to-business) approach, supplying products to construction companies, furniture manufacturers, and other industrial users. Key revenue streams include direct sales of wood products, contracts with large-scale construction projects, and partnerships with distributors both in China and abroad. Additionally, the company may benefit from fluctuations in wood prices and changes in demand within the construction and manufacturing sectors, contributing to its financial performance.

China Wood International Holding Co., Limited Financial Statement Overview

Summary

The company shows a challenging financial trajectory with high volatility in revenue and profitability. The balance sheet indicates high leverage and financial instability, while cash flow remains inconsistent. Despite signs of recovery, significant improvements are needed.

Income Statement

The company experienced significant volatility in revenue over the years, with a sharp decline from 2019 to 2020, followed by fluctuations. Gross Profit Margin has been unstable, with a modest margin in 2024. Net Profit Margin was negative for most years except for 2024, indicating a recovery. The EBIT and EBITDA margins have shown improvement but remain a concern due to historical losses.

Balance Sheet

The company's balance sheet shows high leverage, with a Debt-to-Equity ratio that reflects significant financial risk. The negative Stockholders' Equity in recent years indicates financial instability. Although there is some improvement in 2024, overall asset quality and equity ratio remain low, posing potential risks.

Cash Flow

Cash flow analysis reveals inconsistency, with negative Free Cash Flow in multiple years. The Operating Cash Flow to Net Income Ratio is unavailable for recent periods, but historical data indicates challenges in cash generation relative to net income. Stability in cash flow is needed to improve financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	325.06M	356.37M	323.41M	145.38M	116.07M	24.30M
Gross Profit	26.07M	29.23M	36.94M	24.11M	14.42M	4.40M
EBITDA	2.99M	8.94M	1.28B	-22.91M	-149.97M	-977.85M
Net Income	65.21M	63.78M	1.20B	-150.40M	-274.56M	-1.06B
Balance Sheet
Total Assets	113.96M	66.70M	128.30M	196.16M	224.64M	163.21M
Cash, Cash Equivalents and Short-Term Investments	7.28M	706.00K	3.52M	5.93M	2.54M	3.33M
Total Debt	6.11M	8.82M	27.62M	847.87M	800.37M	784.64M
Total Liabilities	30.44M	27.46M	170.01M	1.60B	1.49B	1.15B
Stockholders Equity	83.52M	39.23M	-41.71M	-1.39B	-1.26B	-978.77M
Cash Flow
Free Cash Flow	-40.96M	-11.32M	20.25M	-49.96M	-14.57M	-12.71M
Operating Cash Flow	-34.97M	-11.32M	20.88M	-38.92M	3.60M	-8.59M
Investing Cash Flow	-5.95M	38.00K	-321.00K	-8.67M	-10.85M	84.00K
Financing Cash Flow	49.31M	8.49M	-21.02M	52.74M	3.79M	-2.98M

China Wood International Holding Co., Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.15
• 50DMA: Positive
• 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:1822, the sentiment is Negative. The current price of 0.15 is below the 20-day moving average (MA) of 0.15, above the 50-day MA of 0.15, and below the 200-day MA of 0.16, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.17 is Neutral, neither overbought nor oversold. The STOCH value of 70.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1822.

China Wood International Holding Co., Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
8481	59 Neutral	HK$205.98M	3.44	18.61%	―	3.98%	54.49%
1822	56 Neutral	HK$148.03M	1.15	-17.27%	―	-17.96%	-95.06%
8277	52 Neutral	HK$28.87M	0.63	―	―	-56.67%	―
0094	49 Neutral	HK$244.86M	-2.15	-9.04%	―	-33.99%	42.25%
1580	47 Neutral	HK$207.08M	-34.36	-395.28%	―	-35.61%	89.32%
8191	41 Neutral	HK$9.79M	-0.07	-49.13%	―	-55.81%	-15292.41%

China Wood International Holding Co., Limited Corporate Events

China Wood International Expands R&D in Food and Beverage Sector

China Wood International Holding Co., Limited announced additional information regarding its recent share placement, highlighting the development of its food and beverage business segment. The company has allocated HK$44.6 million from a rights issue, with a significant portion directed towards research and development in areas such as fermentation and personalized nutrition. The company is also exploring opportunities to acquire interests in synthetic biology infrastructure, which could enhance its capabilities in strain design and fermentation processes.

China Wood International Announces Share Placing to Fund F&B Expansion

China Wood International Holding Co., Limited has announced a placing agreement to issue up to 164,460,000 new shares at a price of HK$0.10 per share, representing a discount to recent trading prices. The proceeds, expected to be approximately HK$16.27 million after expenses, will be used to further develop the company’s food and beverage business segment, highlighting its strategic focus on this area.

China Wood International Clarifies Share Option Scheme in 2024 Annual Report

China Wood International Holding Co., Limited announced a clarification regarding its 2024 Annual Report, specifically about its Share Option Scheme. Following a share consolidation, the number of shares available under the Option Scheme has been adjusted, representing a small percentage of the total shares in issue. This announcement does not affect other contents of the 2024 Annual Report.