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CPM Group Ltd. (HK:1932)
:1932
Hong Kong Market

CPM Group Ltd. (1932) AI Stock Analysis

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HK

CPM Group Ltd.

(1932)

Rating:40Underperform
Price Target:
HK$0.00
▼(-100.00%Downside)
CPM Group Ltd.'s overall stock score is heavily impacted by its financial performance challenges, including declining revenue and profitability issues. The technical analysis also indicates bearish sentiment, with the stock trading below key moving averages. Valuation concerns further contribute to the low score, as the company is currently unprofitable with no dividend yield.

CPM Group Ltd. (1932) vs. iShares MSCI Hong Kong ETF (EWH)

CPM Group Ltd. Business Overview & Revenue Model

Company DescriptionCPM 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 MoneyCPM Group Ltd. generates revenue primarily through the manufacturing and sale of precast concrete products and aggregates. The company’s key revenue streams include direct sales to construction companies, infrastructure projects, and government contracts, which require substantial quantities of building materials. Additionally, CPM Group Ltd. may engage in strategic partnerships with other construction firms and suppliers to enhance its market reach and product offerings. Factors contributing to its earnings include the growing demand for high-quality construction materials driven by urbanization and infrastructure development, as well as the company's ability to innovate and adapt to industry trends and environmental regulations.

CPM Group Ltd. Financial Statement Overview

Summary
CPM Group Ltd. is facing significant financial challenges with declining revenue, negative profit margins, and unstable cash flows. Despite a moderate leverage on the balance sheet, the declining equity is a major concern for long-term financial stability.
Income Statement
35
Negative
The company has experienced a significant decline in revenue over the years, with a negative net profit margin and EBIT margin in the most recent year. This indicates ongoing profitability challenges. Although gross profit margin remains relatively stable, the overall trajectory shows financial strain.
Balance Sheet
50
Neutral
The balance sheet reflects moderate leverage, with a debt-to-equity ratio of 0.54 and a reasonable equity ratio of 46.9%. However, declining stockholders' equity over recent years poses a concern for financial stability.
Cash Flow
40
Negative
The company exhibits volatile cash flow patterns with negative operating cash flow in the latest year, impacting free cash flow negatively. The lack of consistent free cash flow growth suggests potential liquidity issues.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
321.35M469.09M643.05M838.07M712.89M
Gross Profit
129.32M157.54M142.53M166.27M215.95M
EBIT
-25.24M-7.84M-91.56M-57.00M-16.37M
EBITDA
-20.94M-32.99M-58.15M-25.22M22.18M
Net Income Common Stockholders
-47.91M-67.11M-98.47M-59.45M-10.73M
Balance SheetCash, Cash Equivalents and Short-Term Investments
191.46M144.94M147.52M196.09M242.37M
Total Assets
804.00M972.86M1.15B1.20B1.15B
Total Debt
202.09M222.99M246.00M219.55M220.01M
Net Debt
10.63M78.05M98.48M23.45M-16.40M
Total Liabilities
422.93M524.22M631.89M670.37M561.63M
Stockholders Equity
377.09M444.46M518.07M529.58M580.39M
Cash FlowFree Cash Flow
-24.09M79.65M-58.87M2.52M2.28M
Operating Cash Flow
-23.36M83.64M-37.13M20.75M28.38M
Investing Cash Flow
74.15M-59.79M-18.50M-51.92M-13.46M
Financing Cash Flow
-21.09M-24.66M18.05M-13.23M-13.32M

CPM Group Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.17
Price Trends
50DMA
0.21
Negative
100DMA
0.22
Negative
200DMA
0.23
Negative
Market Momentum
MACD
-0.01
Positive
RSI
17.39
Positive
STOCH
44.35
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 0.17 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.21, and below the 200-day MA of 0.23, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 17.39 is Positive, neither overbought nor oversold. The STOCH value of 44.35 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
HK$235.20M15.516.12%2.04%-4.13%-35.11%
61
Neutral
HK$219.60M6.754.78%-2.38%-54.44%
56
Neutral
HK$672.76M-8.95%-3.09%-480.17%
52
Neutral
HK$403.58M-6.09%-30.21%-12.78%
51
Neutral
$1.98B-1.26-21.11%5.99%2.92%-30.46%
46
Neutral
HK$110.76M-1.32%12.01%82.32%
40
Underperform
HK$172.00M-11.66%-31.49%28.61%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1932
CPM Group Ltd.
0.17
-0.09
-34.62%
HK:0701
CNT Group Limited
0.21
-0.09
-30.00%
HK:1047
Ngai Hing Hong Co. Ltd.
0.30
-0.04
-11.76%
HK:1950
Diwang Industrial Holdings Limited
0.30
0.16
114.29%
HK:2116
Jiangsu Innovative Ecological New Materials Ltd.
0.49
0.15
44.12%
HK:0301
SANVO Fine Chemicals Group Limited
1.43
0.25
21.19%

CPM Group Ltd. Corporate Events

CPM Group Announces Director Re-designation and Audit Committee Changes
Jun 13, 2025

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
Jun 13, 2025

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
Jun 6, 2025

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
Jun 6, 2025

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
Jun 5, 2025

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.

CPM Group Limited Schedules Annual General Meeting with Key Resolutions
Apr 25, 2025

CPM Group Limited has announced its upcoming annual general meeting, which will be held on June 5, 2025, in Hong Kong. The meeting will address standard business matters, including the re-election of directors and the re-appointment of auditors. Additionally, a special resolution will be considered to authorize the board to issue additional shares, subject to certain conditions, potentially impacting the company’s capital structure and shareholder value.

CPM Group Ltd. Reports Decline in 2024 Financial Results
Mar 27, 2025

CPM Group Ltd. announced its financial results for the year ended 31 December 2024, reporting a significant decline in revenue and gross profit compared to the previous year. The company experienced a 31.5% drop in revenue and a 17.9% decrease in gross profit, leading to a reduced loss attributable to shareholders by 28.6%. The financial position also showed a decrease in cash and cash equivalents and an increase in the gearing ratio, indicating financial challenges.

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.