China Graphite Group Ltd. (2237) AI Stock Analysis

• Market Cap: HK$560.00M
• Dividend Yield: N/A
• Average Volume (3M): 2.82M
• Price to Earnings (P/E): 60.5
• Beta (1Y): 1.02
• Revenue Growth: -30.01%
• EPS Growth: -159.44%
• Country: HK
• Employees: 189
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 1,600,000,000
• 10 Day Avg. Volume: 7,246,000
• 30 Day Avg. Volume: 2,821,333
• PEG Ratio: 0.20
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 79.86
• 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

• Rating: 55 Neutral
• Price Target: HK$0.50 ▲(47.06%Upside)

The overall stock score is influenced significantly by the company's financial performance, which is currently poor due to declining revenues and profitability. Technical analysis suggests some short-term positive movement, but the valuation remains a concern due to a negative P/E ratio and lack of dividends. These factors create a mixed outlook, with significant financial challenges leading the score.

China Graphite Group Ltd. Business Overview & Revenue Model

Company Description

China Graphite Group Ltd. (2237) is a company engaged in the exploration, mining, processing, and sale of graphite products. The company operates within the industrial minerals sector, focusing primarily on the production of various grades of natural graphite that are used in a range of applications including energy storage, refractory materials, and lubricants. With a strong presence in China, the company leverages its mining assets and processing capabilities to supply high-quality graphite to domestic and international markets.

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

Financial performance is weak due to declining revenues and profitability, with significant challenges in maintaining positive margins. The balance sheet shows a strong equity position, but asset declines raise concerns. Cash flow improvements are a positive indicator, but consistency is needed.

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
	EBIT
-9.38M	23.61M	99.17M	61.62M	49.20M
	EBITDA
5.64M	46.94M	117.58M	74.60M	58.90M
	Net Income Common Stockholders
-12.50M	21.32M	78.98M	53.33M	36.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.20M	112.01M	136.72M	33.93M	10.01M
	Total Assets
562.39M	575.63M	530.75M	334.08M	308.99M
	Total Debt
81.22M	66.94M	11.43M	84.65M	20.64M
	Net Debt
48.74M	-44.98M	-98.75M	50.72M	10.64M
	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: Neutral
• Last Price: 0.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 0.34 is above the 20-day moving average (MA) of 0.33, above the 50-day MA of 0.31, and below the 200-day MA of 0.36, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.13 is Neutral, neither overbought nor oversold. The STOCH value of 20.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	55 Neutral	HK$560.00M	60.53	-2.83%	―	-30.01%	-159.44%
Sector *	51 Neutral	$1.98B	-1.26	-21.11%	5.99%	2.92%	-30.46%
0601	49 Neutral	HK$49.19M	―		―	-7.89%	10.33%
0769	42 Neutral	$1.95B	―	-5.26%	―	10.29%	47.66%
0159	36 Underperform	€853.78M	―	-4.73%	―	―	39.02%

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.

China Graphite Group Schedules AGM to Discuss Key Resolutions

China Graphite Group Limited has announced its upcoming annual general meeting (AGM) scheduled for May 15, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the company’s audited financial statements for 2024, the re-election of retiring directors, and the re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, the AGM will consider granting the board of directors the authority to repurchase shares and issue additional shares, which could impact the company’s market operations and shareholder value.

China Graphite Group Limited Announces 2024 Annual Results

China Graphite Group Limited has announced its audited consolidated annual results for the year ending December 31, 2024. The announcement complies with the Hong Kong Stock Exchange’s listing requirements, indicating a commitment to transparency and regulatory standards, which could positively impact the company’s market perception and stakeholder confidence.