Billion Industrial Holdings Ltd. (2299) AI Stock Analysis

• Market Cap: HK$9.16B
• Dividend Yield: N/A
• Average Volume (3M): 5.80K
• Price to Earnings (P/E): 11.2
• Beta (1Y): -0.08
• Revenue Growth: 14.35%
• EPS Growth: 107.03%
• Country: HK
• Employees: 9,238
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.38
• Shares Outstanding: 2,115,328,000
• 10 Day Avg. Volume: 7,800
• 30 Day Avg. Volume: 5,800
• PEG Ratio: 0.68
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.35
• 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: 72 Outperform
• Price Target: HK$5.00 ▲( 16.82% Upside)

Billion Industrial Holdings Ltd. scores a 72, reflecting strong financial performance with robust growth and improved margins. The technical analysis suggests a neutral but potentially positive short-term trend. Valuation appears fair, though not highly attractive. The absence of corporate events or earnings call data leaves these areas unassessed.

Billion Industrial Holdings Ltd. Business Overview & Revenue Model

Company Description

Billion Industrial Holdings Ltd. (2299) is a company engaged in the manufacturing and sale of textile products. The company primarily focuses on producing a wide range of woven fabrics, including functional fabrics and synthetic fabrics. These products are utilized in various applications such as sportswear, casual wear, and outdoor clothing. The company operates primarily in the textile industry, serving a diverse clientele across different geographic markets.

How the Company Makes Money

Billion Industrial Holdings Ltd. generates revenue through the production and sale of its textile products to a broad range of customers, including apparel manufacturers and retailers. The company's revenue model is based on large-scale manufacturing, where it leverages its capabilities to produce high-quality woven fabrics efficiently. Key revenue streams include sales of functional and synthetic fabrics, which are in demand for their durability and adaptability in clothing production. The company may also engage in strategic partnerships with apparel brands or retailers to secure long-term supply contracts, providing a stable income source. Additionally, Billion Industrial Holdings Ltd. may benefit from economies of scale and cost-effective production processes to maintain competitive pricing and profit margins.

Billion Industrial Holdings Ltd. Financial Statement Overview

Summary

Overall, Billion Industrial Holdings Ltd. displays a strong financial performance, driven by robust revenue growth and improved profitability margins. The low leverage and positive cash flow trends suggest financial stability and resilience. However, the company should continue to focus on improving margins to ensure long-term competitiveness in the apparel manufacturing 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
20.87B	20.63B	17.76B	15.56B	14.24B	8.43B
	Gross Profit
1.39B	1.57B	1.05B	1.42B	2.75B	1.38B
	EBIT
648.97M	971.09M	531.52M	961.11M	2.36B	1.11B
	EBITDA
1.32B	1.81B	1.31B	1.68B	3.00B	1.61B
	Net Income Common Stockholders
479.18M	747.90M	353.40M	655.82M	1.76B	781.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
327.69M	243.32M	1.85B	327.69M	760.98M	342.92M
	Total Assets
26.47B	28.21B	26.27B	26.47B	23.54B	18.68B
	Total Debt
864.67M	788.06M	703.76M	864.67M	1.31B	3.29B
	Net Debt
633.05M	560.53M	545.62M	633.05M	1.16B	2.95B
	Total Liabilities
16.65B	17.23B	16.04B	16.65B	14.44B	11.31B
	Stockholders Equity
9.83B	10.99B	10.23B	9.83B	9.10B	7.37B
Cash Flow		Free Cash Flow
2.20B	743.06M	-1.12B	194.22M	4.99B	-353.17M
	Operating Cash Flow
2.55B	921.15M	-93.55M	2.91B	6.19B	1.35B
	Investing Cash Flow
-538.07M	-785.18M	331.03M	-2.13B	-4.13B	-2.65B
	Financing Cash Flow
-1.64B	-66.95M	-310.73M	-691.23M	-2.25B	1.45B

Billion Industrial Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 4.28 is below the 20-day moving average (MA) of 4.51, below the 50-day MA of 4.42, and below the 200-day MA of 4.36, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 15.06 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
2020	81 Outperform	$251.20B	14.97	28.11%	2.58%	11.51%	47.88%
1898	77 Outperform	$139.52B	5.79	12.03%	5.39%	-4.04%	-12.32%
2313	76 Outperform	$85.31B	12.61	18.17%	4.10%	12.76%	34.50%
2299	72 Outperform	HK$9.16B	11.17	7.06%	―	14.35%	107.03%
1428	68 Neutral	€9.66B	17.03	47.60%	6.01%	-5.88%	-18.17%
1910	67 Neutral	HK$20.05B	8.72	20.15%	5.67%	-4.83%	-27.83%
Sector *	62 Neutral	$6.97B	11.36	2.77%	3.91%	2.66%	-22.00%

Billion Industrial Holdings Ltd. Corporate Events

Billion Industrial Holdings Announces 2025 AGM and Key Resolutions

Billion Industrial Holdings Ltd. has announced its upcoming annual general meeting, scheduled for May 23, 2025, in Hong Kong. The meeting will address several ordinary resolutions, including the approval of the company’s audited financial statements for the year ending December 31, 2024, the authorization of director remuneration, the reappointment of Forvis Mazars CPA Limited as auditors, and the granting of mandates to the directors to purchase company shares and issue additional shares. These resolutions aim to strengthen the company’s governance and operational capabilities, potentially impacting its market position and shareholder value.

Billion Industrial Holdings Announces Board Restructuring to Enhance Governance

Billion Industrial Holdings Limited has announced changes in its board composition, appointing Ms. Shi Haiyan and Mr. Lin Jian Ming to the nomination committee, and designating Mr. Yu Wai Ming as the lead independent non-executive director. These changes, effective from March 24, 2025, are in response to the amended Corporate Governance Code and Listing Rules, aiming to enhance the board’s effectiveness and diversity, thereby strengthening the company’s corporate governance practices.

Billion Industrial Holdings Ltd. Announces Board Composition and Roles

Billion Industrial Holdings Ltd. has announced the composition of its board of directors and the roles and functions of each member. The board includes executive directors, non-executive directors, and independent non-executive directors, with committees established for audit, remuneration, nomination, and corporate governance. This announcement highlights the company’s commitment to structured governance and transparency, potentially impacting its operational efficiency and stakeholder confidence.

Billion Industrial Holdings Ltd. Reports Strong Financial Growth in 2024

Billion Industrial Holdings Ltd. reported a significant financial performance for the year ended December 31, 2024, with revenue reaching RMB20,631.7 million, marking a 16.2% increase from the previous year. The company’s profit surged by 111.6% to RMB747.9 million, and earnings per share doubled to RMB0.35, reflecting strong operational efficiency and market positioning.