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Huajin International Holdings Ltd. (HK:2738)
:2738
Hong Kong Market
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Huajin International Holdings Ltd. (2738) AI Stock Analysis

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HK:2738

Huajin International Holdings Ltd.

(2738)

Rating:47Neutral
Price Target:
HK$0.50
▲(47.06% Upside)
The overall stock score of Huajin International Holdings Ltd. is primarily impacted by its weak financial performance, with significant challenges in profitability, leverage, and cash flow. Technical analysis provides some short-term positive signals, but long-term trends remain weak. The valuation is unattractive due to the negative P/E ratio and absence of dividends, further weighing down the score.

Huajin International Holdings Ltd. (2738) vs. iShares MSCI Hong Kong ETF (EWH)

Huajin International Holdings Ltd. Business Overview & Revenue Model

Company DescriptionHuajin 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 MoneyHuajin 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
45
Neutral
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
50
Neutral
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.90B6.59B4.66B5.29B2.85B
Gross Profit31.67M296.55M-20.13M208.75M150.32M
EBITDA-79.50M173.49M-105.88M120.84M76.96M
Net Income-91.03M85.66M-165.30M62.04M36.42M
Balance Sheet
Total Assets3.72B3.79B2.80B2.40B2.04B
Cash, Cash Equivalents and Short-Term Investments35.27M98.39M16.09M22.57M46.24M
Total Debt2.52B2.29B1.52B1.23B963.20M
Total Liabilities3.29B3.27B2.37B1.82B1.47B
Stockholders Equity422.03M512.83M425.34M586.98M570.41M
Cash Flow
Free Cash Flow-1.38B-920.90M-454.62M-163.35M-128.55M
Operating Cash Flow-914.76M-371.98M-348.72M-36.46M93.99M
Investing Cash Flow-388.19M-603.02M-172.57M-180.95M-195.56M
Financing Cash Flow1.24B1.06B514.83M193.68M109.16M

Huajin International Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.34
Price Trends
50DMA
0.31
Positive
100DMA
0.32
Positive
200DMA
0.51
Negative
Market Momentum
MACD
<0.01
Positive
RSI
53.09
Neutral
STOCH
57.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2738, the sentiment is Positive. The current price of 0.34 is below the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.31, and below the 200-day MA of 0.51, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.09 is Neutral, neither overbought nor oversold. The STOCH value of 57.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2738.

Huajin International Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
£2.47B5.73-6.09%48.59%15.84%0.50%
47
Neutral
HK$201.00M4.66-19.49%-12.06%-204.44%
€166.76M28.891.79%
€88.34M4.925.38%
€147.63M26.251.36%
74
Outperform
HK$374.12M1.6418.42%8.99%11.60%
72
Outperform
HK$266.75M2.6511.21%-0.82%19.45%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2738
Huajin International Holdings Ltd.
0.34
-0.69
-66.99%
DE:CW7
Shougang Concord Century Holding Ltd.
0.05
0.03
150.00%
DE:GUJB
GDH Guangnan (Holdings) Limited
0.09
0.03
50.00%
DE:CCO
China Chengtong Development Group Limited
0.02
0.01
100.00%
HK:1938
Chu Kong Petroleum & Natural Gas Steel Pipe Holdings Ltd.
0.38
0.20
111.11%
HK:6890
KangLi International Holdings Limited
0.44
0.06
15.79%

Huajin International Holdings Ltd. Corporate Events

Huajin International Holdings Announces Key Management Change
Jul 10, 2025

Huajin International Holdings Ltd. has announced a change in its company secretary and authorized representative. Ms. Zhang Liqiong has resigned from her position to focus on personal pursuits, and Ms. Lam Hoi Ki has been appointed as her successor effective from July 10, 2025. Ms. Lam brings over 15 years of experience in auditing, accounting, corporate governance, and company secretarial roles, having worked with various Hong Kong-listed companies. This transition ensures compliance with the listing rules and reflects the company’s commitment to maintaining robust corporate governance practices.

Huajin International Secures Strategic Agreement to Enhance Terminal Operations
Jul 7, 2025

Huajin International Holdings Ltd. has entered into an ‘Entrustment Agreement for Loading and Unloading Services’ with Guangdong Xinkong Energy Technology Co., Ltd., a subsidiary of the State-owned Assets Supervision and Administration Commission of Xinhui District, Jiangmen City, Guangdong Province, China. This agreement designates Huajin to manage dock loading and unloading operations at Huajin Terminal, aiming to create synergies and improve the terminal’s operational utilization rate.

Huajin International Announces Key Executive Changes
Jul 7, 2025

Huajin International Holdings Ltd. announced a significant change in its executive team. Mr. Wong Chak Keung has resigned from his roles as company secretary and chief financial officer to focus on personal pursuits, with no disagreements with the board. Ms. Zhang Liqiong, with over 10 years of experience in finance and accounting, has been appointed to these positions, effective July 7, 2025. This transition is expected to bring fresh expertise to the company’s financial management and strategic operations.

Huajin International’s AGM Resolutions Passed Unanimously
Jun 30, 2025

Huajin International Holdings Ltd. held its 2025 Annual General Meeting (AGM) on June 30, where all proposed resolutions were passed unanimously. The resolutions included adopting the audited financial statements for 2024, re-electing independent non-executive directors, authorizing the board to fix directors’ remuneration, reappointing Deloitte Touche Tohmatsu as the company’s auditor, and granting mandates to the directors regarding share issuance and repurchase. The successful passing of these resolutions reflects a strong consensus among shareholders and supports the company’s strategic direction.

Huajin International Engages in Preliminary Talks for Potential Investment
Jun 12, 2025

Huajin International Holdings Ltd. has announced that it is in preliminary negotiations with a state-owned enterprise in Xinhui District, Jiangmen City, Guangdong Province, China, regarding a potential equity investment and operational cooperation with its subsidiary, Jiangmen Huajin Metal Trading Market Co., Ltd. This potential investment could become a significant transaction for the company, although no formal agreements have been made yet. Stakeholders are advised to exercise caution as the investment and cooperation may or may not proceed.

Huajin International Holdings Ltd. Announces Annual General Meeting Details
Jun 6, 2025

Huajin International Holdings Ltd. has announced the scheduling of its annual general meeting to be held on June 30, 2025, in Hong Kong. The meeting will address several key business items, including the adoption of the company’s audited financial statements for the year ending December 31, 2024, the re-election of independent non-executive directors, and the re-appointment of Deloitte Touche Tohmatsu as the company’s auditor. Additionally, the meeting will consider resolutions to authorize the board to issue additional shares and securities, with certain limitations on the aggregate number of shares that can be issued.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 05, 2025