Huajin International Holdings Ltd. (2738) AI Stock Analysis

• Market Cap: HK$153.00M
• Dividend Yield: N/A
• Average Volume (3M): 258.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• 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: 371,400
• 30 Day Avg. Volume: 258,666
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.25 ▼(-9.29% Downside)

The overall stock score is primarily impacted by significant financial challenges, including negative profitability and high leverage. Technical indicators suggest a bearish trend, while valuation metrics are poor due to negative earnings and lack of dividends. These factors collectively result in a low stock score.

Positive Factors

Diversified Revenue Streams

Huajin's diversified revenue streams across manufacturing, electronics, and property investments help mitigate sector-specific risks and provide stability, enhancing its ability to capitalize on various market opportunities.

Strategic Partnerships

Strategic partnerships with suppliers and distributors expand Huajin's market reach and operational efficiency, supporting stable revenue growth and competitive positioning in the industry.

Industry Expertise

Huajin's extensive industry expertise and network enable it to offer innovative solutions and high-quality products, maintaining relevance and competitiveness in evolving markets.

Negative Factors

High Leverage

High leverage with a debt-to-equity ratio over 5 indicates financial strain, limiting Huajin's flexibility and increasing vulnerability to economic downturns.

Negative Profitability

Negative profitability and fluctuating margins highlight operational challenges, potentially hindering long-term growth and shareholder value creation.

Cash Flow Challenges

Persistent negative cash flow reflects liquidity issues, constraining Huajin's ability to invest in growth initiatives and manage financial obligations effectively.

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 through multiple streams, including the manufacturing and sale of textiles and electronics, which are sold both domestically and internationally. The company earns significant income from its property investment and development projects, including rental income from commercial properties and profits from property sales. Additionally, strategic partnerships with suppliers and distributors enhance its market reach and operational efficiency, contributing to stable revenue growth. The company's diversified portfolio helps mitigate risks and capitalize on various market opportunities, ensuring a steady income flow.

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: Positive
• Last Price: 0.28
• 50DMA: Positive
• 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 Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.26, and below the 200-day MA of 0.32, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.26 is Neutral, neither overbought nor oversold. The STOCH value of 43.36 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1203	71 Outperform	€771.45M	4.85	6.32%	5.81%	16.92%	146.69%
6890	66 Neutral	HK$209.16M	4.73	4.73%	―	-20.52%	-68.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1938	61 Neutral	HK$303.34M	1.10	19.13%	―	-13.26%	63.38%
0103	51 Neutral	€2.03B	96.45	1.06%	2.39%	-8.90%	-79.06%
0217	47 Neutral	€732.20M	33.24	0.80%	1.64%	-37.08%	-60.64%
2738	45 Neutral	HK$153.00M	―	-296.26%	―	-49.77%	-1095.34%

Huajin International Holdings Ltd. Corporate Events

Leadership Transition at Huajin International Holdings Ltd.

Huajin International Holdings Ltd. announced the resignation of Mr. Luo Canwen as Executive Director and CEO, effective December 1, 2025, as he plans to focus on personal commitments. The company expressed gratitude for his contributions. Mr. Chen Chunniu will assume the role of Executive Director and CEO on the same date, bringing extensive experience within the company. This leadership transition is expected to maintain stability and continuity in the company’s operations.

Huajin International Holdings Ltd. Announces Board Restructuring

Huajin International Holdings Ltd. has announced changes to its board of directors, effective from December 1, 2025. The board will include Mr. Xu Songqing as Chairman and Mr. Chen Chunniu as Chief Executive Officer, among other members. The company has also detailed the composition of its four board committees, highlighting the roles and responsibilities of each director within these committees. This restructuring aims to enhance the governance and strategic oversight of the company, potentially impacting its operational efficiency and stakeholder confidence.

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.

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.