China Graphite Group Ltd. (2237) AI Stock Analysis

• Market Cap: HK$544.00M
• Dividend Yield: N/A
• Average Volume (3M): 5.60M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -23.72%
• EPS Growth: -196.49%
• Country: HK
• Employees: 189
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 1,600,000,000
• 10 Day Avg. Volume: 14,565,100
• 30 Day Avg. Volume: 5,598,033
• PEG Ratio: 0.28
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 3.85
• P/FCF Ratio: 17.38
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$0.34 ▼(-5.56% Downside)

The overall stock score is primarily impacted by poor financial performance and weak technical indicators. The company's declining revenues and profitability, coupled with bearish market momentum, significantly lower the score. Valuation concerns due to negative earnings further contribute to the low score. The absence of earnings call insights and corporate events means these factors did not influence the score.

Positive Factors

Strong Equity Position

A strong equity position provides financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Improved Cash Flow

Improved cash flow indicates better operational efficiency, which can support long-term investments and debt servicing, enhancing financial health.

Strategic Partnerships

Partnerships with technology firms can drive innovation and product diversification, strengthening the company's competitive position in emerging markets.

Negative Factors

Declining Revenue

A significant decline in revenue indicates challenges in market demand or competitive pressures, which could impact long-term growth and profitability.

Negative Profit Margins

Negative profit margins suggest operational inefficiencies and cost management issues, which could hinder the company's ability to generate sustainable profits.

Asset Decline

A decline in assets and cash reserves can limit financial flexibility and the ability to invest in growth opportunities, impacting long-term stability.

China Graphite Group Ltd. Business Overview & Revenue Model

Company Description

China Graphite Group Limited engages in the production and sale of flake graphite concentrate and spherical graphite in the People's Republic of China. The company extracts unprocessed graphite from its Beishan Mine, an open-pit graphite ore mine located to the northwest of Luobei County in Heilongjiang Province, as well as purchases unprocessed graphite from third-party suppliers. It also sells unprocessed marble. The company serves industrial manufacturers and retailers of heat-resistant materials. The company was founded in 2006 and is headquartered in Hegang, China. China Graphite Group Limited operates as a subsidiary of Sandy Mining Limited

How the Company Makes Money

China Graphite Group Ltd. generates revenue through the sale of its graphite products, which are sold to various industries including automotive, electronics, and manufacturing. Key revenue streams include bulk sales of natural graphite, processed graphite products, and specialized graphite applications. The company benefits from long-term contracts with major industrial clients, which provide stable revenue. Additionally, strategic partnerships with technology firms and collaborations in research and development enhance its market position and contribute to earnings through innovation and product diversification.

China Graphite Group Ltd. Financial Statement Overview

Summary

China Graphite Group Ltd. is facing significant challenges with declining revenues and profitability, impacting its income statement scores. The balance sheet shows strength in equity but is offset by declining asset values. Cash flow improvements are a positive sign but need to stabilize further. Overall, the company must address its revenue decline and manage costs to improve profitability and ensure sustainable growth.

Income Statement

The company has experienced a significant decline in revenue and profitability in recent years. Revenue fell from $273.6M in 2022 to $142.4M in 2024, a negative growth trajectory. The gross profit margin also decreased from 49.7% in 2022 to 29.2% in 2024. Net profit margin turned negative in 2024, indicating operational challenges. Historically, the company had a strong EBIT and EBITDA margin, but recent performance has reversed these trends, with EBIT margin at -6.6% and EBITDA margin at 4.0% in 2024.

Balance Sheet

The balance sheet remains relatively stable, with stockholders' equity maintaining a strong position at $436.3M in 2024. The debt-to-equity ratio increased slightly to 0.19, indicating moderate leverage, but remains manageable. The equity ratio is robust at 77.6%, showcasing a solid equity base. The primary concern is the decline in total assets and cash reserves over the years, which could impact future financial flexibility.

Cash Flow

Cash flows have been inconsistent, with operating cash flow increasing to $51.0M in 2024, showing improved operational efficiency. However, free cash flow has been volatile, turning positive in 2024 with $31.6M after a negative outflow in 2023. Free cash flow growth has improved, but the company needs to maintain consistency to support long-term investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	145.73M	142.37M	201.99M	273.60M	198.37M	168.75M
Gross Profit	44.64M	41.58M	73.66M	135.90M	93.04M	83.25M
EBITDA	8.79M	5.64M	46.94M	117.58M	74.60M	58.90M
Net Income	-8.17M	-12.50M	21.32M	78.98M	53.33M	36.88M
Balance Sheet
Total Assets	540.27M	562.39M	575.63M	530.75M	334.08M	308.99M
Cash, Cash Equivalents and Short-Term Investments	62.93M	34.20M	112.01M	136.72M	33.93M	10.01M
Total Debt	77.91M	81.22M	66.94M	11.43M	84.65M	103.39M
Total Liabilities	115.85M	126.08M	126.82M	80.23M	132.08M	160.32M
Stockholders Equity	424.42M	436.31M	448.81M	450.51M	202.00M	148.67M
Cash Flow
Free Cash Flow	133.80M	31.56M	-28.66M	14.22M	46.48M	2.40M
Operating Cash Flow	42.74M	51.02M	27.63M	77.33M	75.70M	24.54M
Investing Cash Flow	-21.72M	-138.97M	-58.16M	-88.80M	-29.12M	-20.72M
Financing Cash Flow	-54.58M	8.32M	30.94M	85.94M	-22.65M	4.32M

China Graphite Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2237, the sentiment is Negative. The current price of 0.36 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.35, and above the 200-day MA of 0.35, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2237.

China Graphite Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0769	55 Neutral	HK$1.95B	-15.63	―	―	10.29%	47.66%
0601	45 Neutral	HK$55.11M	-0.14	―	―	-13.76%	-1.08%
2237	44 Neutral	HK$544.00M	-61.82	-1.88%	―	-23.72%	-196.49%
0159	41 Neutral	HK$825.94M	-24.05	-7.49%	―	―	-164.29%
6128	38 Underperform	HK$249.45M	-1.23	-23.14%	―	-27.07%	47.86%