China Risun Group Ltd. (1907) AI Stock Analysis

• Market Cap: HK$10.11B
• Dividend Yield: 1.16%
• Average Volume (3M): 6.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• 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: 6,618,426
• 30 Day Avg. Volume: 6,856,105
• PEG Ratio: -5.76
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -9.11
• 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: HK$3.13
• Price Target Upside: 39.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$2.50 ▲(11.61% Upside)

The overall stock score of 54 reflects the company's stable revenue growth but significant profitability challenges and high leverage. The technical analysis indicates a bearish trend, while the valuation is impacted by a negative P/E ratio. The dividend yield provides some support, but overall, the stock faces multiple headwinds.

Positive Factors

Stable Revenue Growth

Stable revenue growth indicates consistent demand for the company's products and services, supporting long-term business sustainability.

Improved Cash Flow Generation

Enhanced cash flow generation provides the company with greater financial flexibility to reinvest in growth opportunities and manage debt.

Strong Market Position

Strategic partnerships solidify the company's market position, ensuring stable income streams and competitive advantages in key industries.

Negative Factors

High Leverage

High leverage increases financial risk, limiting the company's ability to withstand economic downturns and potentially impacting future growth.

Profitability Challenges

Declining profitability margins suggest operational inefficiencies, which could hinder the company's ability to generate sustainable profits.

Declining Return on Equity

A declining ROE indicates poor profitability relative to shareholder equity, potentially reducing investor confidence and affecting capital raising.

China Risun Group Ltd. Business Overview & Revenue Model

Company Description

China Risun Group Limited, together with its subsidiaries, produces, sells, and distributes coke, coking chemicals, and refined chemicals in the People's Republic of China. The company operates through four segments: Coke and Coking Chemicals Manufacturing, Refined Chemicals Manufacturing, Operation Management, and Trading. Its coking and refined chemical products include crude benzene, industrial naphthalene phthalic anhydride, coke oven gas methanol, coal-tar pitch, and caprolactam. The company also offers operation management service to the third-party coke and chemical companies, as well as training on safety management and operational skills services. In addition, it trades in coke, coking chemical, and refined chemical products; and engages in real estate development activities. The company serves companies in the iron and steel, non-ferrous, coking, and chemical industries. It also exports its products. The company was formerly known as China Risun Coal Chemicals Group Limited and changed its name to China Risun Group Limited in July 2018. China Risun Group Limited was founded in 1995 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

China Risun Group Ltd. generates revenue primarily through the production and sale of metallurgical coke and chemical products derived from coal. Key revenue streams include sales of coke to steel manufacturers, which constitutes a significant portion of its income, as well as the sale of by-products such as coal tar and ammonia. The company also engages in logistics services, facilitating the transportation and distribution of its products. Strategic partnerships with major steel companies and chemical manufacturers enhance its market position and contribute to stable income streams. Additionally, factors such as favorable government policies in the coal and chemical sectors and investments in technology and production efficiency play a crucial role in bolstering its earnings.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.88B	47.54B	46.07B	43.14B	39.37B	19.78B
Gross Profit	3.32B	3.49B	3.32B	4.28B	5.53B	3.22B
EBITDA	3.40B	3.50B	4.37B	4.63B	5.45B	3.22B
Net Income	-63.08M	20.13M	860.81M	1.86B	2.61B	1.65B
Balance Sheet
Total Assets	63.26B	59.84B	53.84B	46.10B	36.80B	24.21B
Cash, Cash Equivalents and Short-Term Investments	2.76B	2.26B	1.25B	1.40B	2.37B	1.19B
Total Debt	35.13B	30.38B	26.31B	20.70B	16.70B	10.57B
Total Liabilities	47.62B	43.96B	39.36B	33.51B	25.69B	15.94B
Stockholders Equity	12.57B	12.76B	12.90B	12.11B	10.98B	8.13B
Cash Flow
Free Cash Flow	2.46B	-1.24B	134.87M	-1.22B	534.69M	-725.01M
Operating Cash Flow	2.42B	1.44B	2.20B	3.16B	4.21B	1.14B
Investing Cash Flow	-7.05B	-3.64B	-1.71B	-9.18B	-5.13B	-2.19B
Financing Cash Flow	3.32B	3.05B	-455.15M	4.93B	2.02B	1.16B

China Risun Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.24
• 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:1907, the sentiment is Negative. The current price of 2.24 is below the 20-day moving average (MA) of 2.26, below the 50-day MA of 2.29, and below the 200-day MA of 2.42, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.88 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, 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	73 Outperform	HK$4.47B	7.86	9.36%	6.70%	-3.73%	6.09%
0189	62 Neutral	HK$18.81B	13.61	10.43%	0.98%	-1.43%	113.67%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0609	61 Neutral	HK$1.30B	20.16	2.46%	3.52%	-5.29%	-32.47%
1702	59 Neutral	HK$1.18B	16.45	3.61%	2.20%	-8.51%	-68.34%
2198	56 Neutral	HK$4.20B	5.57	13.87%	―	9.20%	213.87%
1907	54 Neutral	HK$10.11B	-142.77	-0.52%	1.16%	-15.17%	-125.24%

China Risun Group Ltd. Corporate Events

China Risun Group Ltd. Provides $269.6M Guarantee for Joint Venture Financing

China Risun Group Ltd. has announced a provision of a guarantee in connection with a financing arrangement for its joint venture, Risun Wei Shan. The company, holding a 51% stake in the joint venture, has committed to guarantee up to US$269.6 million, aligning with its proportionate equity interest. This move facilitates a US$453 million financing package aimed at refinancing Risun Wei Shan’s existing debts and supporting its working capital needs. While the guarantee showcases the company’s financial commitment to its collaborative projects, it also heightens its financial exposure, which stakeholders will monitor closely.

The most recent analyst rating on (HK:1907) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on China Risun Group Ltd. stock, see the HK:1907 Stock Forecast page.

China Risun Group Terminates Major Transaction with Binhai Energy

China Risun Group Limited has announced the termination of a proposed transaction involving the disposal of equity interests in Cangzhou Risun Chemicals Limited in exchange for shares from Tianjin Binhai Energy & Development Co., Ltd. The termination, agreed upon by all parties involved, is not expected to adversely affect Risun Group’s business operations or financial standing. The company remains open to future strategic collaborations with Binhai Energy, indicating ongoing efforts to strengthen its industry positioning.

The most recent analyst rating on (HK:1907) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on China Risun Group Ltd. stock, see the HK:1907 Stock Forecast page.

China Risun Group Sells Subsidiary Stake in Strategic Move

China Risun Group Ltd. announced the disposal of its 100% equity interest in a subsidiary to Xuyang New Energy for RMB54,686,200. This transaction, classified as a connected transaction due to the involvement of the company’s controlling shareholder, does not require independent shareholders’ approval. The sale aligns with the company’s strategic adjustments, impacting its financial consolidation and potentially altering its market positioning.

The most recent analyst rating on (HK:1907) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on China Risun Group Ltd. stock, see the HK:1907 Stock Forecast page.