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

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HK:1932

CPM Group Ltd.

(1932)

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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
HK$0.19
▲(32.86% Upside)
Action:Reiterated
Date:05/16/26
The score is primarily constrained by weak financial performance—sharp revenue contraction, continued losses, and recently negative/unstable cash flow—despite improved gross margin and manageable headline leverage. Technicals add a modest additional drag with the stock trading below key short-term moving averages and subdued momentum. Valuation is largely neutral because the negative P/E (loss-making) and lack of dividend yield data limit clear valuation support.
Positive Factors
High gross margin
A gross margin near 42% indicates the core specialty-chemicals operations retain strong unit economics despite top-line stress. Sustained high gross margins provide structural capacity to cover fixed costs and enable profit recovery if volumes or pricing normalize.
Negative Factors
Severe revenue contraction
A near three-quarters decline in revenue over several years is a structural red flag: it erodes scale benefits, weakens customer relationships, and raises the per-unit fixed-cost burden. Restoring sustainable top-line traction will be a multi-quarter, resource-intensive challenge.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margin
A gross margin near 42% indicates the core specialty-chemicals operations retain strong unit economics despite top-line stress. Sustained high gross margins provide structural capacity to cover fixed costs and enable profit recovery if volumes or pricing normalize.
Read all positive factors

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

CPM Group Ltd. Business Overview & Revenue Model

Company Description
CPM Group Limited, an investment holding firm established in 1932 and headquartered in Wan Chai, Hong Kong, focuses on the production and distribution of an extensive array of paint and coating solutions throughout Hong Kong and Mainland China. It...
How the Company Makes Money
null...

CPM Group Ltd. Financial Statement Overview

Summary
Financials are weak overall: revenue has fallen sharply (842.5M in 2021 to 241.1M in 2025) and the company remains loss-making with a net margin around -19.1% in 2025. Gross margin improved (~41.7% in 2025), but losses have not meaningfully narrowed and cash flow has deteriorated, with operating cash flow slightly negative in 2025 and free cash flow negative in 2024–2025. Balance sheet leverage is manageable (debt-to-equity ~0.61), but equity has declined over time alongside persistent losses.
Income Statement
24
Negative
Balance Sheet
46
Neutral
Cash Flow
21
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue241.09M321.35M469.09M643.05M842.52M
Gross Profit100.58M129.32M157.54M142.53M170.72M
EBITDA-1.69M-20.94M-32.99M-58.15M-25.22M
Net Income-45.98M-47.91M-67.11M-98.47M-59.45M
Balance Sheet
Total Assets706.67M804.00M972.86M1.15B1.20B
Cash, Cash Equivalents and Short-Term Investments158.29M191.46M144.94M147.52M256.43M
Total Debt167.93M205.35M222.99M246.00M219.55M
Total Liabilities349.52M422.93M524.22M631.89M670.37M
Stockholders Equity353.06M377.09M444.46M518.07M529.58M
Cash Flow
Free Cash Flow-2.94M-24.09M79.65M-58.87M2.52M
Operating Cash Flow-1.31M-23.36M83.64M-37.13M20.75M
Investing Cash Flow8.88M76.28M-59.79M-18.50M-51.92M
Financing Cash Flow-39.90M-21.09M-24.66M18.05M-13.23M

CPM Group Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.14
Price Trends
50DMA
0.25
Negative
100DMA
0.26
Negative
200DMA
0.20
Negative
Market Momentum
MACD
-0.01
Positive
RSI
35.40
Neutral
STOCH
14.49
Positive
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 0.23, below the 50-day MA of 0.25, and below the 200-day MA of 0.20, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 35.40 is Neutral, neither overbought nor oversold. The STOCH value of 14.49 is Positive, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
HK$1.18B8.403.36%7.85%-5.34%43.44%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
59
Neutral
HK$11.86B4.1712.61%5.31%0.46%6.62%
49
Neutral
HK$3.00B-2.52-39.25%-9.38%-5783.70%
46
Neutral
HK$811.10M-11.75-3.55%-16.30%-113.19%
45
Neutral
HK$191.00M-4.15-12.85%-24.98%3.97%
45
Neutral
HK$1.89B-53.18-15.58%-0.05%-54.13%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1932
CPM Group Ltd.
0.19
0.02
11.05%
HK:0408
Yip's Chemical Holdings
2.10
0.62
41.41%
HK:3318
China Boton Group Co., Ltd.
2.78
1.00
56.18%
HK:0546
Fufeng Group Limited
4.73
-1.76
-27.13%
HK:0301
SANVO Fine Chemicals Group Limited
4.01
2.68
201.50%
HK:2502
Henan Jinyuan Hydrogenated Chemicals Co., Ltd. Class H
0.49
0.07
15.48%

CPM Group Ltd. Corporate Events

CPM launches takeover offers with despatch of composite document and sets offer timetable
Jun 24, 2026
CPM Group Ltd. and its offerors have dispatched the composite document and accompanying acceptance forms for the takeover offers to independent shareholders and optionholders, formally launching the CPM offers in accordance with Hong Kong’s ...
Offerors Gain Majority Control of CNT Group as Takeover Becomes Unconditional
Jun 17, 2026
Offerors Prime Surplus Limited and SHK Hong Kong Industries Limited have secured sufficient acceptances in their general offer for CNT Group Limited to lift their combined stake above 50 percent, giving them majority voting control in the company....
CPM Group takeover offers hinge on CNT bid turning unconditional
Jun 12, 2026
Prime Surplus Limited and SHK Hong Kong Industries Limited are progressing possible mandatory unconditional cash offers for all issued shares and outstanding share options of CPM Group Ltd., excluding holdings already controlled by the offerors, C...
CPM Group Wins Unanimous Shareholder Backing for AGM Resolutions and Capital Mandates
Jun 4, 2026
Shareholders of CPM Group Limited have unanimously approved all ordinary resolutions at the annual general meeting held on June 4, 2026, including the adoption of the 2025 audited financial statements and the re‑election of executive and ind...
CNT and CPM Delay Dispatch of Takeover Composite Documents
May 12, 2026
CNT Group and CPM Group have announced delays in sending key composite documents related to ongoing takeover offers, citing the need for additional time to prepare and finalise required information, including an independent financial adviser&#8217...
CPM Group Sets 2026 AGM to Approve Accounts, Board Changes and Share Mandate
Apr 24, 2026
CPM Group Limited has called its annual general meeting for 4 June 2026 in Hong Kong, where shareholders will review the audited consolidated financial statements and reports for the year ended 31 December 2025, and vote on the re-election of one ...
Prime Surplus, SHK Hong Kong Trigger Mandatory Offer for CNT After Stake Increase
Apr 21, 2026
Prime Surplus Limited and SHK Hong Kong Industries Limited have triggered a mandatory conditional cash offer for CNT Group Limited after Prime Surplus acquired an additional 4.66% stake at HK$0.10 per share, lifting their combined interest to abou...
CPM Group Requests Trading Halt Ahead of Possible Takeover Announcement
Apr 13, 2026
CPM Group Limited has requested a halt in trading of its shares on the Main Board of the Hong Kong Stock Exchange, effective from 9:00 a.m. on 13 April 2026. The suspension comes as the company prepares to issue an announcement regarding a possibl...
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.Date of analysis: May 16, 2026