Huaibei GreenGold Industry Investment Co., Ltd. Class H (2450) AI Stock Analysis

• Market Cap: HK$222.42M
• Dividend Yield: 0.96%
• Average Volume (3M): 163.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: 0.93%
• EPS Growth: -228.15%
• Country: HK
• Employees: 166
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -0.01
• Shares Outstanding: 66,000,000
• 10 Day Avg. Volume: 166,200
• 30 Day Avg. Volume: 163,500
• PEG Ratio: 0.13
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 1.94
• P/FCF Ratio: 2.75
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$3.50 ▲(3.86% Upside)

The overall stock score is primarily influenced by the company's financial performance and valuation challenges, with a negative net income and increased leverage posing significant risks. However, positive technical indicators suggest some market optimism, which slightly offsets the financial concerns. The high dividend yield provides a potential attraction for income-focused investors.

Positive Factors

Cash Flow Management

Improved free cash flow indicates better cash management, enhancing the company's ability to fund operations and investments sustainably.

Operational Efficiency

Stable EBIT margins suggest operational efficiency, which can provide a buffer against revenue fluctuations and support long-term profitability.

Revenue Diversification

Diverse revenue streams from green initiatives reduce dependency on a single income source, enhancing resilience against sector-specific downturns.

Negative Factors

Leverage and Financial Risk

Increased leverage heightens financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.

Profitability Challenges

Declining gross margins indicate reduced profitability, which can strain financial resources and limit reinvestment in core business areas.

Revenue Decline

Continued revenue decline suggests challenges in market demand or competitive positioning, impacting long-term growth prospects.

Huaibei GreenGold Industry Investment Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Huaibei GreenGold Industry Investment Co., Ltd. produces and sells construction materials in the People's Republic of China. The company offers aggregate products, including scalping, sand powder, and construction aggregate products; and concrete products, such as ready-mixed concrete, cement stabilized macadam, and asphalt concrete. It primarily serves construction companies, building materials companies, and wholesalers. The company was founded in 2016 and is headquartered in Huaibei, the People's Republic of China.

How the Company Makes Money

Huaibei GreenGold generates revenue through multiple streams, primarily from the sale of energy produced by its renewable energy projects, such as solar power plants. Additionally, the company earns income from contracts related to waste management services and environmental consulting. Partnerships with local governments and private enterprises to develop green energy initiatives further enhance its revenue potential. The company also benefits from government incentives and subsidies aimed at promoting renewable energy and sustainable practices, which contribute significantly to its earnings.

Huaibei GreenGold Industry Investment Co., Ltd. Class H Financial Statement Overview

Summary

The company faces challenges with declining revenues and profitability, as evidenced by negative net income and shrinking margins. The balance sheet shows increased leverage, which could pose financial risks. However, the company has managed to improve its free cash flow, indicating potential for better cash management.

Income Statement

The company has experienced a significant decline in revenue over the past few years, with a notable drop from 2020 to 2024. Gross profit margin has decreased from 57% in 2020 to 35% in 2024, indicating reduced profitability. The net profit margin turned negative in 2024, reflecting a net loss, which is a major concern. However, the company maintained a relatively stable EBIT margin around 23% in 2024, which shows some operational efficiency.

Balance Sheet

The debt-to-equity ratio has increased significantly, indicating higher leverage, which could pose financial risks. The equity ratio has decreased from 48% in 2020 to 19% in 2024, showing reduced financial stability. Return on equity has turned negative in 2024 due to the net loss, highlighting profitability challenges. The company's total assets have grown, but this is overshadowed by the increase in liabilities.

Cash Flow

Operating cash flow remains strong, although it has decreased from 2020 levels. Free cash flow has improved significantly in 2024 compared to previous years, indicating better cash management. The operating cash flow to net income ratio is high, suggesting efficient cash generation relative to earnings. However, the free cash flow to net income ratio is negative due to the net loss, which is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	252.72M	236.17M	290.62M	407.71M	370.33M	506.38M
Gross Profit	94.87M	83.76M	124.31M	194.82M	178.35M	288.52M
EBITDA	139.94M	124.04M	191.52M	272.44M	238.81M	306.40M
Net Income	-17.08M	-21.97M	37.49M	67.41M	64.71M	124.19M
Balance Sheet
Total Assets	2.27B	2.48B	2.38B	2.29B	2.34B	702.01M
Cash, Cash Equivalents and Short-Term Investments	385.81M	322.81M	342.58M	251.40M	599.00M	67.00M
Total Debt	1.34B	1.36B	1.01B	900.37M	934.87M	68.00M
Total Liabilities	1.57B	1.77B	1.72B	1.75B	1.88B	194.94M
Stockholders Equity	466.91M	469.70M	476.95M	371.53M	304.12M	334.51M
Cash Flow
Free Cash Flow	111.58M	166.76M	98.78M	-141.75M	-480.54M	263.26M
Operating Cash Flow	116.17M	172.29M	207.27M	155.23M	244.84M	291.72M
Investing Cash Flow	-202.89M	-203.83M	64.51M	-469.99M	-620.38M	-133.43M
Financing Cash Flow	-159.66M	278.20M	-243.08M	-226.24M	895.71M	-277.56M

Huaibei GreenGold Industry Investment Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2450, the sentiment is Positive. The current price of 3.37 is above the 20-day moving average (MA) of 3.31, above the 50-day MA of 3.11, and above the 200-day MA of 2.92, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 54.88 is Neutral, neither overbought nor oversold. The STOCH value of 38.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2450.

Huaibei GreenGold Industry Investment Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2233	60 Neutral	HK$15.62B	14.69	7.74%	1.29%	20.56%	254.64%
2450	55 Neutral	HK$222.42M	-48.07	-3.67%	0.96%	0.93%	-228.15%
0695	51 Neutral	HK$3.67B	-115.05	-6.75%	―	-11.16%	41.97%
1847	49 Neutral	HK$68.28M	-2.01	-8.97%	―	-11.49%	-128.11%
0691	48 Neutral	HK$2.74B	17.80	0.80%	―	-14.85%	―
1313	45 Neutral	HK$11.17B	44.57	0.51%	1.52%	―	―

Huaibei GreenGold Industry Investment Co., Ltd. Class H Corporate Events

Huaibei GreenGold Announces Shareholder Reorganization

Huaibei GreenGold Industry Investment Co., Ltd., a joint stock company incorporated in China, announced a reorganization at the controlling shareholder level. Huaibei Hongjian Construction Engineering Co., Ltd. has been renamed as Huaibei Xinghuai Holding Co., Ltd. and transferred to Huaibei SASAC. Additionally, Xinghuai Mining was established and is wholly owned by Xinghuai Holding. The Securities and Futures Commission of Hong Kong granted a waiver for Xinghuai Mining from making a general offer for all issued shares of the company due to the proposed intra-group reorganization. Further announcements regarding the transfer of shares will be made in accordance with applicable laws and regulations.

Huaibei GreenGold Forms Strategic Partnership with Shenzhen Phoenix

Huaibei GreenGold Industry Investment Co., Ltd. has entered into a strategic cooperation agreement with Shenzhen Phoenix Joint-Stock Co., Ltd. to establish a long-term partnership aimed at enhancing competitiveness through resource integration and project development. This collaboration aligns with Huaibei GreenGold’s strategic plan to integrate into the Guangdong-Hong Kong-Macao Greater Bay Area, leveraging Shenzhen Phoenix’s local expertise and resources to support the company’s growth objectives.

Huaibei GreenGold Announces Potential Reorganization at Shareholder Level

Huaibei GreenGold Industry Investment Co., Ltd., a joint stock company incorporated in China, is undergoing a potential reorganization at the controlling shareholder level. The reorganization involves renaming Huaibei Hongjian Construction Engineering Co., Ltd. to Huaibei Xinghuai Capital Holding Co., Ltd., which will be transferred to Huaibei Municipal State-owned Assets Supervision and Administration Commission (SASAC). A new company, Huaibei City Xinghuai Mining Co., Ltd., will be established and wholly owned by Xinghuai Capital. The 75% shares of Huaibei GreenGold held by Huaibei Construction Investment Group will be transferred to Xinghuai Mining at nil consideration. Despite these changes, the ultimate beneficial owner, Huaibei SASAC, remains unchanged, maintaining its control over the company.