China Risun Group Ltd. (1907) AI Stock Analysis

• Market Cap: €10.42B
• Dividend Yield: 1.12%
• Average Volume (3M): 10.22M
• Price to Earnings (P/E): 486.0
• Beta (1Y): 0.33
• Revenue Growth: -15.17%
• EPS Growth: -125.24%
• Country: HK
• Employees: 7,389
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): <0.01
• Shares Outstanding: 4,454,186,000
• 10 Day Avg. Volume: 8,485,522
• 30 Day Avg. Volume: 10,215,492
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €2.48
• Price Target Upside: 5.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: HK$2.50 ▲(6.84% Upside)

The overall stock score is primarily influenced by financial performance and technical analysis. The company shows stable revenue growth but faces significant profitability challenges and high leverage. Technical indicators suggest a bearish trend with potential for reversal, but momentum remains weak. Valuation concerns are heightened by a negative P/E ratio, despite a modest dividend yield.

China Risun Group Ltd. Business Overview & Revenue Model

Company Description

China Risun Group Ltd. is a leading integrated coke, coking chemical, and refined chemical producer and supplier in China. The company operates across various sectors, including the production and sale of coke, coking chemicals, and refined chemicals, as well as the supply of relevant technologies and services. Its products serve multiple industries, such as steel, chemicals, pharmaceuticals, and agriculture, establishing Risun as a key player in China's industrial supply chain.

How the Company Makes Money

China Risun Group Ltd. generates revenue primarily through the production and sale of coke, coking chemicals, and refined chemicals. Coke serves as a crucial raw material for steel manufacturing, and the company capitalizes on its strategic positioning in the supply chain to maintain robust sales. Additionally, Risun's coking chemical products are used in various industrial applications, providing a diversified revenue stream. The company also earns from the sale of refined chemicals, which are utilized in pharmaceuticals, agrochemicals, and other sectors. Strategic partnerships with steel producers and chemical companies enhance its market reach and contribute to its earnings. Furthermore, the provision of technologies and services related to its core products supports additional income avenues.

China Risun Group Ltd. Financial Statement Overview

Summary

China Risun Group Ltd. demonstrates stable revenue growth but faces profitability challenges with a declining net profit margin. The balance sheet reveals high leverage, posing financial risks, though the equity ratio indicates a balanced asset structure. Cash flow generation shows improvement, reflecting operational resilience, but net income volatility remains a concern.

Income Statement

The company shows a stable revenue growth trend with a Revenue Growth Rate of 3.20% in 2024 compared to 2023. However, the net profit margin has significantly decreased to 0.04% in 2024, indicating profitability challenges. Gross Profit Margin is moderate at 7.34%, and the EBIT Margin has decreased to 2.97% in 2024, suggesting reduced operational efficiency.

Balance Sheet

The Debt-to-Equity Ratio is relatively high at 2.38, indicating significant leverage, which poses a risk. Return on Equity (ROE) has drastically fallen to 0.16% in 2024, suggesting poor profitability relative to shareholder equity. The Equity Ratio remains moderate at 21.32%, indicating a balanced asset structure but high reliance on debt.

Cash Flow

The Free Cash Flow Growth Rate shows a strong increase, reflecting improved cash generation. However, Operating Cash Flow to Net Income Ratio has weakened due to the drop in net income. The Free Cash Flow to Net Income Ratio is favorable, indicating resilience in cash flow generation despite profitability issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.54B	46.07B	43.14B	38.43B	19.78B
Gross Profit	3.49B	3.32B	4.28B	5.53B	3.22B
EBITDA	3.50B	4.37B	4.63B	5.45B	3.22B
Net Income	20.13M	860.81M	1.86B	2.61B	1.65B
Balance Sheet
Total Assets	59.84B	53.84B	46.10B	36.80B	24.21B
Cash, Cash Equivalents and Short-Term Investments	2.26B	1.25B	1.40B	2.37B	1.19B
Total Debt	30.38B	26.31B	20.70B	13.80B	10.57B
Total Liabilities	43.96B	39.36B	33.51B	25.69B	15.94B
Stockholders Equity	12.76B	12.90B	12.11B	10.98B	8.13B
Cash Flow
Free Cash Flow	-1.40B	134.87M	-1.22B	534.69M	-725.01M
Operating Cash Flow	1.44B	2.20B	3.16B	4.21B	1.14B
Investing Cash Flow	-3.64B	-1.71B	-9.18B	-5.13B	-2.19B
Financing Cash Flow	3.05B	-455.15M	4.93B	2.02B	1.18B

China Risun Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1907, the sentiment is Negative. The current price of 2.34 is below the 20-day moving average (MA) of 2.44, below the 50-day MA of 2.45, and below the 200-day MA of 2.58, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 37.24 is Neutral, neither overbought nor oversold. The STOCH value of 12.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1907.

China Risun Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0746	78 Outperform	4.27B	7.50	8.12%	6.67%	-3.73%	6.09%
2198	65 Neutral	3.01B	4.00	10.84%	―	9.20%	213.87%
1702	63 Neutral	869.32M	12.12	4.69%	2.58%	-8.51%	-68.34%
0189	62 Neutral	19.06B	13.79	6.70%	0.87%	-1.43%	113.67%
0609	54 Neutral	1.27B	19.75	―	3.45%	-5.29%	-32.47%
1907	52 Neutral	€10.42B	486.00	-0.52%	1.12%	-15.17%	-125.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

China Risun Group Ltd. Corporate Events

China Risun Group Secures Shareholder Approval for Key Resolutions at AGM

China Risun Group Limited announced that all resolutions proposed at its Annual General Meeting (AGM) held on May 30, 2025, were approved by shareholders. The resolutions included the approval of the company’s financial statements, re-election of directors, re-appointment of the external auditor, and the declaration of a special dividend. The approval of these resolutions reflects strong shareholder support and could positively impact the company’s financial strategy and market perception.

China Risun Group Announces Special Dividend for 2024

China Risun Group Limited announced the approval of a special cash dividend of RMB 0.0222 per share for the financial year ending December 31, 2024. The dividend, approved by shareholders on May 30, 2025, will be paid in Hong Kong dollars at a rate of HKD 0.024 per share, with an exchange rate of RMB 1 to HKD 1.077. The ex-dividend date is set for June 9, 2025, and the payment date is June 30, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may enhance its attractiveness to investors.

China Risun Group Announces Major Disposal and Acquisition Transaction

China Risun Group Ltd. has announced a significant transaction involving the disposal of equity interests in a target company to Binhai Energy in exchange for consideration shares. This transaction, which includes both a substantial disposal and acquisition, will result in Binhai Energy becoming a subsidiary of Risun Group, thereby consolidating their financial statements. The transaction is subject to various regulatory approvals under the Hong Kong Stock Exchange’s Listing Rules, and further announcements will be made as details are finalized.