Huajin International Holdings Ltd. (2738) AI Stock Analysis

• Market Cap: HK$150.00M
• Dividend Yield: N/A
• Average Volume (3M): 191.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: -49.77%
• EPS Growth: -1095.34%
• Country: HK
• Employees: 1,492
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -0.94
• Shares Outstanding: 600,000,000
• 10 Day Avg. Volume: 208,200
• 30 Day Avg. Volume: 191,800
• PEG Ratio: 0.02
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.07
• P/FCF Ratio: -0.29
• 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: 41 Neutral
• Price Target: HK$0.50 ▲(100.00% Upside)

Huajin International Holdings Ltd. is facing significant financial and operational challenges, as evidenced by its negative profitability, high leverage, and weak cash flow generation. The technical indicators suggest a bearish trend with weak momentum, and the valuation metrics are unattractive due to negative earnings and the absence of a dividend yield. These factors collectively result in a low overall stock score.

Huajin International Holdings Ltd. Business Overview & Revenue Model

Company Description

Huajin International Holdings Limited, an investment holding company, engages in the production and sale of cold-rolled and galvanized steel products in the People's Republic of China and Southeast Asia. The company offers cold-rolled carbon steel strips, sheets, welded steel tubes, and zinc coated steel products. It serves various industries, such as light industrial hardware, home appliances, furniture, motorcycle/bicycle accessories, LED, and lighting. The company was founded in 2005 and is headquartered in Jiangmen, the People's Republic of China. Huajin International Holdings Limited is a subsidiary of Haiyi Limited.

How the Company Makes Money

Huajin International Holdings Ltd. generates revenue primarily through the production and sale of its steel products, including cold-rolled and galvanized steel. The company operates multiple production lines that enable it to produce different specifications and grades of steel to meet diverse customer requirements. Revenue streams are driven by sales contracts with manufacturers in various industries, including automotive, construction, and consumer goods. Additionally, Huajin may engage in strategic partnerships or supply agreements with major industrial clients to ensure consistent demand and supply chain integration. The company's earnings are influenced by factors such as fluctuations in steel prices, production capacity, and operational efficiency.

Huajin International Holdings Ltd. Financial Statement Overview

Summary

Huajin International Holdings Ltd. faces significant financial challenges, with negative profitability, high leverage, and weak cash flow generation. The income statement reveals inconsistent revenue and profit margins, while the balance sheet shows high debt levels relative to equity. Cash flow issues further compound these problems, highlighting the need for strategic improvements to stabilize financial health.

Income Statement

Huajin International Holdings Ltd. has experienced volatile revenue and profit margins. Gross profit margin and net profit margin have seen significant fluctuations, with recent periods showing negative profitability. Revenue growth has been inconsistent, with a notable drop in the latest year. EBIT and EBITDA margins have also been negative in recent years, indicating operational challenges.

Balance Sheet

The balance sheet reflects a high debt load relative to equity, with a debt-to-equity ratio exceeding 5. The equity ratio is relatively low, suggesting high leverage. Return on Equity has been negative recently, driven by net losses. Historically, the company maintained a stronger equity position, but recent financial distress has weakened its balance sheet stability.

Cash Flow

Cash flow analysis shows negative operating and free cash flow in recent years, indicating liquidity challenges. The company has struggled to generate positive operating cash flow, especially in the latest year. The absence of positive free cash flow growth and low ratios of cash flow to net income reflect ongoing cash generation issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.42B	5.90B	6.59B	4.66B	5.29B	2.85B
Gross Profit	-602.73M	31.67M	296.55M	-20.13M	208.75M	150.32M
EBITDA	-711.80M	-79.50M	173.49M	-105.88M	120.84M	76.96M
Net Income	-631.06M	-91.03M	85.66M	-165.30M	62.04M	36.42M
Balance Sheet
Total Assets	3.30B	3.72B	3.79B	2.80B	2.40B	2.04B
Cash, Cash Equivalents and Short-Term Investments	5.20M	35.27M	98.39M	16.09M	22.57M	46.24M
Total Debt	2.37B	2.52B	2.29B	1.52B	1.23B	963.20M
Total Liabilities	3.40B	3.29B	3.27B	2.37B	1.82B	1.47B
Stockholders Equity	-101.37M	422.03M	512.83M	425.34M	586.98M	570.41M
Cash Flow
Free Cash Flow	-429.29M	-1.38B	-920.90M	-454.62M	-163.35M	-128.55M
Operating Cash Flow	-310.98M	-914.76M	-371.98M	-348.72M	-36.46M	93.99M
Investing Cash Flow	8.70M	-388.19M	-603.02M	-172.57M	-180.95M	-195.56M
Financing Cash Flow	285.54M	1.24B	1.06B	514.83M	193.68M	109.16M

Huajin International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.25
• 50DMA: Negative
• 100DMA: Negative
• 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:2738, the sentiment is Negative. The current price of 0.25 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.29, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 39.10 is Neutral, neither overbought nor oversold. The STOCH value of 56.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2738.

Huajin International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1203	―	€798.68M	5.02	6.32%	5.56%	16.92%	146.69%
6890	―	HK$224.31M	5.08	4.73%	―	-20.52%	-68.47%
1938	―	HK$364.01M	1.32	19.13%	―	-13.26%	63.38%
0103	―	€2.11B	100.00	1.06%	2.19%	-8.90%	-78.99%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0217	―	HK$773.87M	35.14	0.80%	1.54%	-37.08%	-60.64%
2738	―	HK$150.00M	―	-296.26%	―	-49.77%	-1095.34%

Huajin International Holdings Ltd. Corporate Events

Huajin International Announces Executive Resignation and Addresses Compliance Issue

Huajin International Holdings Ltd. announced the resignation of Mr. Xu Songman as Executive Director, effective June 22, 2025, due to his personal commitments. The company also disclosed a non-compliance issue with the Hong Kong Stock Exchange’s listing rules, attributed to a miscommunication, and plans to improve board communication to prevent future occurrences.

The most recent analyst rating on (HK:2738) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Huajin International Holdings Ltd. stock, see the HK:2738 Stock Forecast page.

Huajin International Holdings Ltd. Announces New Board Composition

Huajin International Holdings Ltd. has announced a new composition of its board of directors, effective from June 22, 2025. The board includes executive directors Mr. Xu Songqing as Chairman and Mr. Luo Canwen as CEO, with Mr. Xu Jianhong as a non-executive director. Independent non-executive directors are Mr. Chan Oi Fat, Mr. Ou Qiyuan, and Ms. Yip Nga Ting Cerin. The announcement outlines the roles and committee memberships of each board member, indicating a structured governance approach that may enhance the company’s strategic oversight and compliance.

The most recent analyst rating on (HK:2738) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Huajin International Holdings Ltd. stock, see the HK:2738 Stock Forecast page.

Huajin International Holdings Updates 2024 Annual Report with Share Option Details

Huajin International Holdings Ltd. has issued a supplemental announcement regarding its 2024 Annual Report. The company has provided additional information about its share option scheme, detailing the movements in share options held by directors during the year. This announcement is significant for stakeholders as it provides transparency about the company’s share option allocations, potentially impacting investor confidence and market perceptions.

The most recent analyst rating on (HK:2738) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Huajin International Holdings Ltd. stock, see the HK:2738 Stock Forecast page.

Huajin International Holdings Reports Significant Loss in H1 2025

Huajin International Holdings Ltd. reported a significant financial downturn for the first half of 2025, with a gross loss of RMB 540,213,000 compared to a profit in the same period of 2024. The company’s revenue decreased dramatically, and it faced a substantial loss before taxation, indicating challenges in maintaining profitability and potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:2738) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Huajin International Holdings Ltd. stock, see the HK:2738 Stock Forecast page.

Huajin International Issues Profit Warning Amid Market Challenges

Huajin International Holdings Ltd. has issued a profit warning, indicating a significant decline in revenue and a shift from profit to loss for the first half of 2025. The company attributes this downturn to weak market demand, intensified competition, trade environment challenges, and high raw material costs. The steel industry has been particularly affected by slowed investments in key sectors, tariff barriers, and increased production costs, leading to decreased order volumes and higher unit processing costs. These factors have collectively impacted the company’s financial performance, posing challenges for stakeholders.

The most recent analyst rating on (HK:2738) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Huajin International Holdings Ltd. stock, see the HK:2738 Stock Forecast page.

Huajin International Holdings Ltd. Announces Upcoming Board Meeting

Huajin International Holdings Ltd. has announced a board meeting scheduled for August 29, 2025, to discuss and approve the unaudited interim results for the six months ending June 30, 2025, and to consider the declaration and payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential dividend payouts, impacting investor confidence and market positioning.

The most recent analyst rating on (HK:2738) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Huajin International Holdings Ltd. stock, see the HK:2738 Stock Forecast page.