Billion Industrial Holdings Ltd. (2299) AI Stock Analysis

• Market Cap: HK$9.89B
• Dividend Yield: N/A
• Average Volume (3M): 27.27K
• Price to Earnings (P/E): 11.5
• Beta (1Y): -0.17
• Revenue Growth: -6.79%
• EPS Growth: 66.07%
• Country: HK
• Employees: 9,238
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.19
• Shares Outstanding: 2,112,452,000
• 10 Day Avg. Volume: 49,600
• 30 Day Avg. Volume: 27,266
• PEG Ratio: 0.11
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 11.91
• 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: 75 Outperform
• Price Target: HK$5.50 ▲(12.94% Upside)

Billion Industrial Holdings Ltd. receives a solid score due to its strong financial performance and positive technical indicators. The company's stable financial position and reasonable valuation further support the score. However, the lack of dividend yield and relatively low industry margins are areas for potential improvement.

Positive Factors

Financial Stability

Low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities and weather economic downturns.

Cash Flow Improvement

Positive cash flow from operations indicates improved financial health, enabling the company to fund operations and invest in future growth without relying on external financing.

Revenue Growth

Strong revenue growth reflects successful market expansion and product demand, positioning the company well for sustained long-term growth.

Negative Factors

Margin Pressure

Despite improvements, margins remain relatively low for the industry, which could limit profitability and competitive edge in the long term.

Revenue Decline

The decline in revenue growth suggests potential market challenges or competitive pressures, which could impact future financial performance.

Net Debt Increase

An increase in net debt, even if slight, can strain financial resources and limit the company's ability to invest in growth or manage downturns effectively.

Billion Industrial Holdings Ltd. Business Overview & Revenue Model

Company Description

Billion Industrial Holdings Limited, together with its subsidiaries, manufactures and sells polyester filament yarns products, polyester products, polyester industrial yarns products, and ES fiber products in the People's Republic of China and internationally. It offers polyester filament yarns comprising drawn textured, fully drawn, and partially oriented yarns for use in the production of fabrics and textiles for various consumer products, including apparel, footwear, and home furnishings; polyester thin films, such as heat sealable, twistable, anti-static, electronic releasing, and coating films, as well as metallization, printing, transfer, electrical insulation, card lamination, hot stamping, metallic yarn, reflector, holographic, and solar base films; and polyester products, consisting od biaxially-oriented polyethylene terephthalate thin films, polyester bottle chips, polyester films, and wasted filament for use in various sectors, including packaging, magnetic materials, imaging, industry, electronics, and electrical appliances. Billion Industrial Holdings Limited was founded in 2003 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Billion Industrial Holdings Ltd. generates revenue through the sale of its manufactured products, which include a wide range of industrial components used in various sectors such as automotive, electronics, and consumer goods. The company's revenue model is primarily based on direct sales to customers, as well as through partnerships with distributors and retailers. Key revenue streams include the sale of plastic products, machinery components, and automotive parts. Additionally, the company may benefit from long-term contracts with clients, which provide a stable income source. Strategic partnerships with other manufacturers and suppliers further enhance its market reach and contribute to its earnings.

Billion Industrial Holdings Ltd. Financial Statement Overview

Summary

Billion Industrial Holdings Ltd. displays strong financial performance with robust revenue growth and improved profitability margins. The company maintains low leverage and positive cash flow trends, indicating financial stability and resilience. However, margins remain relatively low for the industry.

Income Statement

Billion Industrial Holdings Ltd. has shown strong revenue growth with an increase of 16.21% from 2023 to 2024. Gross profit margin improved to 7.62%, and net profit margin increased to 3.62%. EBIT and EBITDA margins also improved, reaching 4.71% and 8.77% respectively. The company demonstrates a positive trajectory in both revenue and profitability, although the margins remain relatively low for the industry.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.07, indicating low leverage. The return on equity (ROE) is 6.81%, showing decent returns on shareholder equity. The equity ratio stands at 38.94%, highlighting financial stability with a significant proportion of assets financed by equity. However, the net debt level increased slightly, which could be a point of concern.

Cash Flow

Cash flow from operations turned positive to $921 million in 2024, compared to negative in 2023. Free cash flow improved significantly, showing a growth rate of over 100% from 2023 to 2024. The operating cash flow to net income ratio is 1.23, and free cash flow to net income ratio is 0.99, indicating good cash flow coverage. Despite previous volatility, cash flow generation is back on track.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.50B	20.63B	17.76B	15.56B	14.24B	8.43B
Gross Profit	1.64B	1.57B	1.05B	1.42B	2.75B	1.38B
EBITDA	1.82B	1.81B	1.31B	1.68B	3.00B	1.61B
Net Income	797.13M	747.90M	353.40M	655.82M	1.76B	781.48M
Balance Sheet
Total Assets	28.39B	28.21B	26.27B	26.47B	23.54B	18.68B
Cash, Cash Equivalents and Short-Term Investments	1.16B	243.32M	1.85B	327.69M	760.98M	342.92M
Total Debt	3.74B	788.06M	703.76M	864.67M	1.31B	3.29B
Total Liabilities	17.09B	17.23B	16.04B	16.65B	14.44B	11.31B
Stockholders Equity	11.29B	10.99B	10.23B	9.83B	9.10B	7.37B
Cash Flow
Free Cash Flow	-3.73B	743.06M	-1.12B	194.22M	4.99B	-353.17M
Operating Cash Flow	-3.40B	921.15M	-93.55M	2.91B	6.19B	1.35B
Investing Cash Flow	768.68M	-785.18M	331.03M	-2.13B	-4.13B	-2.65B
Financing Cash Flow	3.23B	-66.95M	-310.73M	-691.23M	-2.25B	1.45B

Billion Industrial Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.87
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2299, the sentiment is Negative. The current price of 4.87 is above the 20-day moving average (MA) of 4.74, above the 50-day MA of 4.78, and above the 200-day MA of 4.52, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 8.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2299.

Billion Industrial Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2232	76 Outperform	HK$19.80B	11.84	14.24%	5.87%	14.76%	23.04%
2299	75 Outperform	HK$9.89B	11.51	7.26%	―	-6.79%	66.07%
2199	67 Neutral	HK$2.83B	10.83	8.10%	4.00%	3.40%	151.24%
1982	64 Neutral	HK$2.39B	6.29	14.74%	12.14%	-0.95%	2.58%
2368	63 Neutral	HK$2.00B	8.40	12.21%	7.98%	13.52%	4.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1382	59 Neutral	HK$1.75B	12.52	4.73%	8.06%	-2.44%	-5.98%