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China Boton Group Co., Ltd. (HK:3318)
:3318
Hong Kong Market
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China Boton Group Co., Ltd. (3318) AI Stock Analysis

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HK:3318

China Boton Group Co., Ltd.

(3318)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
HK$3.00
▲(66.67% Upside)
Action:Reiterated
Date:07/01/26
The score is held back primarily by weak financial performance—margin collapse, a very large net loss, and multi-year negative free cash flow—despite moderate and improving leverage. Technicals provide meaningful support as the stock trades above its 20/50/100/200-day moving averages, but valuation remains challenged due to loss-making earnings (negative P/E).
Positive Factors
Diversified end-market exposure
China Boton sells flavors and fragrances across multiple end markets (F&B, tobacco, personal/household care and industrial). This product-market diversification reduces reliance on any single cyclical buyer and supports steadier demand and cross-selling opportunities over a multi-month horizon.
Negative Factors
Severe margin collapse
A sharp drop in gross margin and the shift to operating losses indicate meaningful deterioration in core profitability drivers—costs, pricing or product mix. Such a large margin contraction impairs the firm's ability to self-fund operations and increases reliance on structural fixes or pricing power recoveries.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified end-market exposure
China Boton sells flavors and fragrances across multiple end markets (F&B, tobacco, personal/household care and industrial). This product-market diversification reduces reliance on any single cyclical buyer and supports steadier demand and cross-selling opportunities over a multi-month horizon.
Read all positive factors

China Boton Group Co., Ltd. (3318) vs. iShares MSCI Hong Kong ETF (EWH)

China Boton Group Co., Ltd. Business Overview & Revenue Model

Company Description
China Boton Group Company Limited, along with its affiliated entities, specializes in the creation, manufacturing, distribution, and sale of a diverse array of extracts, flavorings, and fragrances. Its operations extend globally, encompassing main...
How the Company Makes Money
The company primarily makes money by selling flavor and fragrance products (formulations/compounds) to corporate customers that incorporate these inputs into their own finished goods. Key revenue streams come from (1) flavors used in food and beve...

China Boton Group Co., Ltd. Financial Statement Overview

Summary
Despite a strong 2025 revenue rebound (+19.3% YoY), profitability deteriorated sharply (gross margin fell to ~25% and results moved to operating losses) culminating in a very large net loss (~-69% net margin). Operating cash flow stayed positive but was small relative to reported losses, and free cash flow has been negative for multiple years, indicating ongoing cash drain. The balance sheet shows moderate leverage with improving debt-to-equity (~0.47), but equity declined materially and ROE turned deeply negative, increasing risk until margins and cash generation stabilize.
Income Statement
28
Negative
Balance Sheet
55
Neutral
Cash Flow
34
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.50B1.65B2.06B2.32B2.29B
Gross Profit377.10M597.91M798.11M786.86M892.34M
EBITDA73.75M333.30M384.14M304.83M493.93M
Net Income-1.03B18.38M146.37M48.32M183.51M
Balance Sheet
Total Assets6.80B6.30B6.01B6.45B6.31B
Cash, Cash Equivalents and Short-Term Investments1.81B404.21M407.18M445.40M531.86M
Total Debt2.25B1.90B1.56B1.68B1.41B
Total Liabilities4.38B2.89B2.63B3.19B3.14B
Stockholders Equity2.10B3.14B3.13B2.98B2.91B
Cash Flow
Free Cash Flow-272.63M-338.06M53.73M-40.25M164.04M
Operating Cash Flow95.88M188.69M214.41M129.75M277.23M
Investing Cash Flow-446.15M-587.44M-196.78M-217.58M-107.71M
Financing Cash Flow352.74M330.57M-102.17M186.59M-97.11M

China Boton Group Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.80
Price Trends
50DMA
1.67
Positive
100DMA
1.69
Positive
200DMA
1.76
Positive
Market Momentum
MACD
0.26
Negative
RSI
76.25
Negative
STOCH
58.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3318, the sentiment is Positive. The current price of 1.8 is below the 20-day moving average (MA) of 2.24, above the 50-day MA of 1.67, and above the 200-day MA of 1.76, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 76.25 is Negative, neither overbought nor oversold. The STOCH value of 58.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3318.

China Boton Group Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
HK$1.18B8.403.36%7.85%-5.34%43.44%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
59
Neutral
HK$9.72B-21.09-3.31%3.48%3.39%-2.32%
59
Neutral
HK$11.86B4.1712.61%5.31%0.46%6.62%
49
Neutral
HK$3.00B-2.52-39.25%-9.38%-5783.70%
46
Neutral
HK$811.10M-11.75-3.55%-16.30%-113.19%
45
Neutral
HK$1.89B-53.18-15.58%-0.05%-54.13%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3318
China Boton Group Co., Ltd.
2.78
1.00
56.18%
HK:0336
Huabao International Holdings
3.01
0.11
3.97%
HK:0408
Yip's Chemical Holdings
2.10
0.62
41.41%
HK:0546
Fufeng Group Limited
4.73
-1.76
-27.13%
HK:0301
SANVO Fine Chemicals Group Limited
4.01
2.68
201.50%
HK:2502
Henan Jinyuan Hydrogenated Chemicals Co., Ltd. Class H
0.49
0.07
15.48%

China Boton Group Co., Ltd. Corporate Events

China Boton to Acquire Shanghai Company in RMB240 Million Discloseable Deal
Jun 30, 2026
China Boton Group Co., Ltd., through an indirect wholly owned PRC subsidiary, has agreed to acquire 100% of a Shanghai-based target company from an independent vendor, paying RMB240 million in cash in three instalments. The deal, valued with refer...
China Boton Wins Unanimous Backing for All Resolutions at 2026 AGM
May 22, 2026
China Boton Group Company Limited reported that all resolutions at its 2026 annual general meeting on 22 May 2026 were approved by shareholders via poll. The meeting covered routine corporate matters, including receipt of the 2025 audited financia...
China Boton Sets 2026 AGM to Vote on Director Mandates and Share Issuance Authority
Apr 17, 2026
China Boton Group has convened its annual general meeting for 22 May 2026 in Hong Kong, where shareholders will review the audited consolidated financial statements and the directors’ and auditor’s reports for the financial year ended ...
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: Jul 01, 2026