CPM Group Ltd. (1932) AI Stock Analysis

• Market Cap: HK$150.00M
• Dividend Yield: N/A
• Average Volume (3M): 2.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• 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: 400
• 30 Day Avg. Volume: 2,133
• PEG Ratio: 0.18
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -10.38
• 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: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$0.13 ▼(-12.00% Downside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues and persistent losses. Technical indicators suggest a bearish trend, and valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield.

Positive Factors

Sustainability Focus

CPM Group Ltd.'s commitment to sustainability enhances its appeal to eco-conscious clients, supporting long-term demand and market differentiation.

Innovative Product Development

Ongoing investment in R&D fosters innovation, helping CPM Group Ltd. maintain a competitive edge and adapt to evolving market needs.

Stable Revenue Streams

The B2B model with major contracts ensures stable, recurring revenue streams, providing financial predictability and resilience.

Negative Factors

Declining Revenues

The significant decline in revenue indicates challenges in market demand or competitive positioning, impacting long-term growth prospects.

Negative Cash Flow

Negative cash flow limits the company's ability to invest in growth opportunities and may strain operational sustainability.

Persistent Losses

Ongoing losses highlight operational inefficiencies and may hinder the company's ability to generate shareholder value.

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 the sale of its packaging products to a wide range of industries, including food and beverage manufacturers, as well as consumer goods companies. The company operates on a business-to-business (B2B) model, securing contracts with major clients that contribute to stable, recurring revenue streams. Additionally, CPM Group Ltd. invests in research and development to create innovative packaging solutions that offer added value, helping to differentiate its offerings in a competitive market. Partnerships with suppliers and distributors also play a crucial role in the company's revenue generation, allowing for efficient production and delivery processes. The focus on sustainable practices and materials has attracted environmentally conscious clients, further enhancing its market position and profitability.

CPM Group Ltd. Financial Statement Overview

Summary

CPM Group Ltd. faces significant financial challenges with declining revenues, persistent losses, and cash flow issues. The balance sheet shows moderate leverage, but the lack of profitability and negative cash flows pose risks to financial stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	279.37M	321.35M	469.09M	643.05M	842.52M	712.89M
Gross Profit	113.16M	129.32M	157.54M	142.53M	170.72M	215.95M
EBITDA	-32.26M	-20.94M	-32.99M	-58.15M	-25.22M	22.18M
Net Income	-62.09M	-47.91M	-67.11M	-98.47M	-59.45M	-10.80M
Balance Sheet
Total Assets	716.97M	804.00M	972.86M	1.15B	1.20B	1.15B
Cash, Cash Equivalents and Short-Term Investments	115.35M	191.46M	144.94M	147.52M	256.43M	242.37M
Total Debt	165.18M	205.35M	222.99M	246.00M	219.55M	220.01M
Total Liabilities	350.10M	422.93M	524.22M	631.89M	670.37M	561.63M
Stockholders Equity	362.81M	377.09M	444.46M	518.07M	529.58M	580.39M
Cash Flow
Free Cash Flow	-16.32M	-24.09M	79.65M	-58.87M	2.52M	2.28M
Operating Cash Flow	-15.35M	-23.36M	83.64M	-37.13M	20.75M	28.38M
Investing Cash Flow	18.67M	76.28M	-59.79M	-18.50M	-51.92M	-13.46M
Financing Cash Flow	-37.82M	-21.09M	-24.66M	18.05M	-13.23M	-13.32M

CPM Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1932, the sentiment is Positive. The current price of 0.15 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.13, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 80.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	HK$240.00M	13.16	7.30%	2.00%	29.04%	-1.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1950	60 Neutral	HK$123.12M	4.87	3.61%	―	-12.19%	108.93%
0301	56 Neutral	HK$621.01M	-17.86	-14.53%	―	0.35%	-153.95%
1047	54 Neutral	HK$142.14M	427.78	0.07%	―	5.65%	―
0701	49 Neutral	HK$375.03M	-3.73	-8.05%	―	-24.13%	-27.54%
1932	48 Neutral	HK$150.00M	-2.42	-15.93%	―	-25.21%	12.04%

CPM Group Ltd. Corporate Events

CPM Group Limited Changes Auditor to Enhance Cost-Effectiveness

CPM Group Limited has announced a change in its auditing firm due to a disagreement over audit fees with its previous auditor, Ernst & Young (EY). The company has appointed ZHONGHUI ANDA CPA Limited as the new auditor, citing competitive proposals and industry expertise as reasons for the change. The board believes this transition will not significantly impact the annual audit for the year ending December 31, 2025, and is in the best interest of the company and its shareholders.