CPM Group Ltd. (1932) AI Stock Analysis

• Market Cap: HK$144.00M
• Dividend Yield: N/A
• Average Volume (3M): 6.53K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: -25.21%
• EPS Growth: 12.04%
• Country: HK
• Employees: 441
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.03
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 19,200
• 30 Day Avg. Volume: 6,533
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 1

• Rating: 43 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 43 reflects significant financial challenges, bearish technical indicators, and concerning valuation metrics. The company's declining revenues, persistent losses, and cash flow issues are major risks. The technical analysis indicates a strong downtrend, and the negative P/E ratio highlights valuation concerns. The absence of earnings call data and corporate events means these factors were not considered.

CPM Group Ltd. Business Overview & Revenue Model

Company Description

CPM Group Limited, an investment holding company, manufactures and sells paint and coating products in Hong Kong and Mainland China. The company offers industrial paint and coating products used in furniture painting, and manufacturing and surface finishing of materials by manufacturers, renovation contractors for property and infrastructure projects, and household users. It also provides architectural paint and coating products for walls, floors, and exterior parts of buildings; and general paint and coating, and ancillary products, such as thinners, enamels, and anti-mold agents and solvent agents for architectural and industrial applications. The company was founded in 1932 and is based in Wan Chai, Hong Kong. CPM Group Limited is a subsidiary of CNT Enterprises Limited.

How the Company Makes Money

CPM Group Ltd. generates revenue primarily through consulting fees, project management contracts, and strategic advisory services. The company earns fees by leveraging its expertise to assist clients in optimizing operations, enhancing project efficiencies, and achieving strategic goals. CPM Group Ltd. may also engage in partnerships with other firms to expand its service offerings, thereby accessing new markets and client bases. Additionally, the company's reputation and longstanding industry presence contribute to securing repeat business and long-term contracts, further solidifying its revenue streams.

CPM Group Ltd. Financial Statement Overview

Summary

CPM Group Ltd. faces significant financial challenges with declining revenues, persistent losses, and cash flow issues. The income statement shows a negative revenue growth rate and consistent negative EBIT and net income. The balance sheet reflects moderate leverage but a lack of shareholder value creation. Cash flow analysis indicates volatility and cash constraints.

Income Statement

The income statement shows a declining trend in revenue and profitability. The revenue has decreased significantly over the years, with a negative revenue growth rate of -31.5% from 2023 to 2024. The company has consistently reported negative EBIT and net income, indicating operational challenges and lack of profitability. Gross profit margin has also declined, reflecting reduced efficiency in managing production costs.

Balance Sheet

The balance sheet reflects a stable equity base with a debt-to-equity ratio of 0.54, indicating moderate leverage. However, the equity ratio has decreased, showing a reduction in the proportion of assets financed by equity. Return on equity remains negative due to persistent net losses, highlighting a lack of shareholder value creation.

Cash Flow

Cash flow analysis reveals volatility, with a significant drop in operating cash flow from positive in 2023 to negative in 2024. Free cash flow has also turned negative, indicating cash constraints. The operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting earnings into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	321.35M	469.09M	643.05M	838.07M	712.89M
Gross Profit	129.32M	157.54M	142.53M	166.27M	215.95M
EBITDA	-20.94M	-32.99M	-58.15M	-25.22M	22.18M
Net Income	-47.91M	-67.11M	-98.47M	-59.45M	-10.73M
Balance Sheet
Total Assets	804.00M	972.86M	1.15B	1.20B	1.15B
Cash, Cash Equivalents and Short-Term Investments	191.46M	144.94M	147.52M	196.09M	242.37M
Total Debt	202.09M	222.99M	246.00M	219.55M	220.01M
Total Liabilities	422.93M	524.22M	631.89M	670.37M	561.63M
Stockholders Equity	377.09M	444.46M	518.07M	529.58M	580.39M
Cash Flow
Free Cash Flow	-24.09M	79.65M	-58.87M	2.52M	2.28M
Operating Cash Flow	-23.36M	83.64M	-37.13M	20.75M	28.38M
Investing Cash Flow	74.15M	-59.79M	-18.50M	-51.92M	-13.46M
Financing Cash Flow	-21.09M	-24.66M	18.05M	-13.23M	-13.32M

CPM Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1932, the sentiment is Negative. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.15, and below the 200-day MA of 0.20, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 23.69 is Positive, neither overbought nor oversold. The STOCH value of 33.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1932.

CPM Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2116	68 Neutral	218.40M	11.97	0.00%	2.11%	29.04%	-1.55%
1950	63 Neutral	152.64M	6.13	4.66%	―	-12.19%	108.93%
1047	56 Neutral	114.45M	-17.82	0.00%	―	12.01%	82.32%
0701	52 Neutral	405.49M	-4.03	0.00%	―	-24.13%	-27.54%
0301	46 Neutral	616.30M	-16.91	-9.30%	―	0.35%	-153.95%
1932	43 Neutral	HK$144.00M	―	-15.93%	―	-25.21%	12.04%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

CPM Group Ltd. Corporate Events

CPM Group Announces Director Re-designation and Audit Committee Changes

CPM Group Limited has announced the re-designation of Mr. Mak Chi Wah from an executive director to a non-executive director, effective from 13 June 2025. Mr. Mak, who has extensive experience in accounting and business operations, will also join the audit committee of the Board. This strategic move is expected to leverage Mr. Mak’s expertise in financial management and corporate governance, potentially enhancing the company’s oversight and strategic planning capabilities.

CPM Group Limited Announces Board and Committee Composition

CPM Group Limited has announced the composition of its board of directors and the members of its key committees. The board includes a mix of executive, non-executive, and independent non-executive directors, reflecting a diverse governance structure. The announcement highlights the establishment of the Audit, Remuneration, and Nomination Committees, each chaired and comprised of selected board members, which is indicative of the company’s commitment to structured corporate governance practices.

CPM Group Announces Board Reshuffle

CPM Group Limited has announced significant changes in its board composition, effective 6 June 2025. Mr. Chong Chi Kwan has resigned as a non-executive director and from his roles in the audit and remuneration committees due to personal commitments. The company has expressed gratitude for his contributions. Additionally, Ms. Meng Jinxia has been appointed to the audit and nomination committees, while Mr. Mak Chi Wah joins the remuneration committee, indicating a strategic reshuffle in leadership roles.

CPM Group Ltd. Updates Nomination Committee Terms for Enhanced Governance

CPM Group Ltd. has revised the terms of reference for its Nomination Committee to ensure compliance with the Hong Kong Stock Exchange’s listing rules. The committee, primarily composed of independent non-executive directors, is tasked with reviewing the board’s composition and diversity, assessing director independence, and making recommendations on board appointments and succession planning. This revision aims to enhance the company’s governance and strategic alignment, potentially impacting its market positioning and stakeholder relations.

CPM Group Limited AGM Resolutions Passed with Strong Support

CPM Group Limited held its Annual General Meeting on June 5, 2025, where all proposed resolutions were passed with significant shareholder support. Key resolutions included re-electing directors, authorizing the board to fix directors’ and auditors’ remuneration, and granting mandates for share allotment and buyback. The AGM saw full participation from the company’s directors, either in person or electronically, and no shareholders abstained from voting.