tiprankstipranks
Trending News
More News >
China Graphite Group Ltd. (HK:2237)
:2237
Hong Kong Market
Advertisement

China Graphite Group Ltd. (2237) AI Stock Analysis

Compare
0 Followers

Top Page

HK:2237

China Graphite Group Ltd.

(2237)

Rating:49Neutral
Price Target:
HK$0.50
▲(47.06% Upside)
The overall stock score is primarily impacted by the company's declining financial performance, with significant revenue and profitability challenges. Technical analysis suggests neutral to bearish momentum, while the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a below-average stock score.

China Graphite Group Ltd. (2237) vs. iShares MSCI Hong Kong ETF (EWH)

China Graphite Group Ltd. Business Overview & Revenue Model

Company DescriptionChina 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 MoneyChina Graphite Group Ltd. generates revenue through the extraction and sale of natural graphite. The company's primary revenue streams include the sale of graphite products to industries such as energy storage, where graphite is used in batteries, metallurgy for its high thermal conductivity, and electronics for its conductive properties. Additionally, the company may engage in strategic partnerships with other firms in the supply chain to enhance its market reach and efficiency. Key factors that contribute to its earnings include the demand for graphite in emerging technologies and global industrial applications.

China Graphite Group Ltd. Financial Statement Overview

Summary
The company is experiencing 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
45
Neutral
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
60
Neutral
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue142.37M201.99M273.60M198.37M168.75M
Gross Profit41.58M73.66M135.90M93.04M83.25M
EBITDA5.64M46.94M117.58M74.60M58.90M
Net Income-12.50M21.32M78.98M53.33M36.88M
Balance Sheet
Total Assets562.39M575.63M530.75M334.08M308.99M
Cash, Cash Equivalents and Short-Term Investments34.20M112.01M136.72M33.93M10.01M
Total Debt81.22M66.94M11.43M84.65M20.64M
Total Liabilities126.08M126.82M80.23M132.08M160.32M
Stockholders Equity436.31M448.81M450.51M202.00M148.67M
Cash Flow
Free Cash Flow31.56M-28.66M14.22M46.48M2.40M
Operating Cash Flow51.02M27.63M77.33M75.70M24.54M
Investing Cash Flow-138.97M-58.16M-88.80M-29.12M-20.72M
Financing Cash Flow8.32M30.94M85.94M-22.65M4.32M

China Graphite Group Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.34
Price Trends
50DMA
0.36
Negative
100DMA
0.34
Positive
200DMA
0.35
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
45.50
Neutral
STOCH
28.57
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 0.34 is below the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.36, and below the 200-day MA of 0.35, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.50 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$10.28B6.210.76%2.84%3.10%-36.03%
49
Neutral
HK$544.00M60.53-1.88%-23.72%-196.49%
$250.55M-5.26%
€5.25M
€137.09M-4.73%
HK$200.50M-34.29%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2237
China Graphite Group Ltd.
0.34
0.00
0.00%
CREQF
China Rare Earth Holdings
0.18
0.16
800.00%
DE:GPS0
Rare Earth Magnesium Technology Group Holdings Ltd.
0.06
0.00
0.00%
DE:WA2
Brockman Mining Ltd.
0.01
0.00
0.00%
HK:6128
Graphex Group Limited
0.22
0.02
10.00%

China Graphite Group Ltd. Corporate Events

China Graphite Group Schedules Board Meeting for Interim Results
Aug 15, 2025

China Graphite Group Limited has announced that its board of directors will meet on August 29, 2025, to consider and approve the company’s unaudited interim results for the first half of the year and discuss the potential payment of an interim dividend. This meeting is significant as it may impact the company’s financial outlook and shareholder returns, reflecting its operational performance and strategic direction.

China Graphite Group Updates on Share Option Scheme
Jun 3, 2025

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.

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: Sep 04, 2025