China Graphite Group Ltd. (2237) AI Stock Analysis

• Market Cap: HK$552.00M
• Dividend Yield: N/A
• Average Volume (3M): 2.91M
• Price to Earnings (P/E): 60.5
• Beta (1Y): 0.93
• Revenue Growth: -30.01%
• EPS Growth: -159.44%
• Country: HK
• Employees: 189
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 1,600,000,000
• 10 Day Avg. Volume: 735,000
• 30 Day Avg. Volume: 2,910,666
• PEG Ratio: 0.17
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.66
• 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: HK$0.50
• Price Target Upside: 47.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: HK$0.50 ▲(47.06%Upside)

The overall stock score is driven by financial performance issues, such as declining revenues and profitability, and unattractive valuation metrics with a negative P/E ratio. Technical analysis shows mixed signals with some potential for improvement, but the lack of earnings call data and corporate events leaves significant uncertainty.

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 extraction and processing of natural graphite, which is then sold to various industries. Their revenue model is primarily based on the sale of graphite products, which include different grades tailored for specific industrial applications such as batteries, electronics, and metallurgy. The company benefits from strategic partnerships with manufacturers and distributors, ensuring a steady demand for its products. Additionally, factors such as the growing demand for electric vehicles and renewable energy storage solutions contribute to the company's earnings, as these sectors increasingly rely on graphite for battery production.

China Graphite Group Ltd. Financial Statement Overview

Summary

China Graphite Group Ltd. faces significant challenges, with declining revenues and profitability impacting its income statement. Despite a strong equity position, the declining asset values and inconsistent cash flows highlight financial instability. Improvements in cash flow are promising but require further consistency.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	142.37M	201.99M	273.60M	198.37M	168.75M
Gross Profit	41.58M	73.66M	135.90M	93.04M	83.25M
EBITDA	5.64M	46.94M	117.58M	74.60M	58.90M
Net Income	-12.50M	21.32M	78.98M	53.33M	36.88M
Balance Sheet
Total Assets	562.39M	575.63M	530.75M	334.08M	308.99M
Cash, Cash Equivalents and Short-Term Investments	34.20M	112.01M	136.72M	33.93M	10.01M
Total Debt	81.22M	66.94M	11.43M	84.65M	20.64M
Total Liabilities	126.08M	126.82M	80.23M	132.08M	160.32M
Stockholders Equity	436.31M	448.81M	450.51M	202.00M	148.67M
Cash Flow
Free Cash Flow	31.56M	-28.66M	14.22M	46.48M	2.40M
Operating Cash Flow	51.02M	27.63M	77.33M	75.70M	24.54M
Investing Cash Flow	-138.97M	-58.16M	-88.80M	-29.12M	-20.72M
Financing Cash Flow	8.32M	30.94M	85.94M	-22.65M	4.32M

China Graphite Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.34
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 0.34 is below the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.32, and below the 200-day MA of 0.36, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.81 is Neutral, neither overbought nor oversold. The STOCH value of 44.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2237	54 Neutral	HK$552.00M	60.53	-2.83%	―	-30.01%	-159.44%
Sector *	44 Neutral	AU$1.43B	-6.03	-40.74%	3.91%	-3.45%	-41.77%
CREQF	―	$248.83M	―	-5.26%	―	―	―
GPS0	―	€6.01M	―		―	―	―
WA2	―	€87.01M	―	-4.73%	―	―	―
6128	―	HK$183.10M	―	-34.29%	―	―	―

China Graphite Group Ltd. Corporate Events

China Graphite Group Updates on Share Option Scheme

China Graphite Group Limited has issued a supplemental announcement regarding its Share Option Scheme as detailed in its 2024 Annual Report. The announcement clarifies that as of the end of 2024, 160 million share options were available for grant, representing about 10% of the company’s shares. The Share Option Scheme, which began in June 2022, remains valid for approximately 7 more years, unless terminated early by the Board.

China Graphite Group Secures Unanimous Shareholder Support at AGM

China Graphite Group Limited announced the successful passing of all resolutions at its Annual General Meeting held on May 15, 2025. The resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting of mandates for share repurchase and issuance. All resolutions received unanimous support from shareholders, indicating strong confidence in the company’s governance and strategic direction.