China Boton Group Co., Ltd. (3318) AI Stock Analysis

• Market Cap: HK$1.92B
• Dividend Yield: N/A
• Average Volume (3M): 295.40K
• Price to Earnings (P/E): 98.4
• Beta (1Y): 0.12
• Revenue Growth: -21.05%
• EPS Growth: -87.68%
• Country: HK
• Employees: 1,245
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 0.02
• Shares Outstanding: 1,080,512,200
• 10 Day Avg. Volume: 188,200
• 30 Day Avg. Volume: 295,400
• PEG Ratio: -0.58
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -65.67
• 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: 51 Neutral
• Price Target: HK$1.50 ▼(-15.73%Downside)

The overall stock score reflects significant financial challenges, particularly with declining revenue and profitability, and concerning liquidity issues. Technical analysis shows some positive momentum, but the high P/E ratio indicates overvaluation, making the stock less attractive. The absence of earnings call and corporate events data was excluded from the analysis.

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

Company Description

China Boton Group Company Limited, together with its subsidiaries, researches and develops, manufactures, trades in, and sells extracts, flavors, and fragrances in the People's Republic of China, Europe, the United States, Asia, and internationally. The company operates through five segments: Flavor Enhancers, Food Flavors, Fine Fragrances, Healthcare Products, and Investment Properties. It provides its flavors primarily to manufacturers of tobacco, beverages, daily foods, preserved food, and savory and confectionery industries; and fragrances to manufacturers of cosmetics, perfumes, soaps, toiletries, hair care products, deodorants, detergents, and air fresheners industries. The company also designs, manufactures, and sells electronic cigarette (e-cigarette) products, including disposable and re-chargeable e-cigarettes, and e-cigarette accessories to the tobacco companies, independent e-cigarette makers, and other customers. In addition, it is involved in the rental of investment properties. The company was formerly known as China Flavors and Fragrances Company Limited and changed its name to China Boton Group Company Limited in June 2020. China Boton Group Company Limited was founded in 1991 and is headquartered in Central, Hong Kong.

How the Company Makes Money

China Boton Group Co., Ltd. generates revenue primarily through the sale of its flavor and fragrance products. The company supplies these products to a wide range of industries, ensuring a diversified revenue stream. Key revenue streams include sales to the food and beverage industry, where flavors are used to enhance product taste, and the tobacco industry, where specific fragrances are utilized. Additionally, the personal care sector contributes to revenue through the use of fragrances in perfumes, cosmetics, and hygiene products. Strategic partnerships with major companies in these sectors and a focus on research and development to innovate new products further bolster the company's earnings.

China Boton Group Co., Ltd. Financial Statement Overview

Summary

Significant challenges with declining revenue by 20%, reduced gross and net profit margins, and lack of operating cash flow raise concerns about financial health and future sustainability.

Income Statement

The company experienced a significant decline in revenue over the past year, from approximately 2.06 billion to 1.65 billion, a decrease of around 20%. Gross profit margin fell from 38.7% to 36.2%, and net profit margin dropped from 7.1% to 1.1%. These figures indicate challenges in maintaining profitability and overall financial health.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.60, indicating manageable leverage. However, the return on equity has significantly decreased from 4.68% to 0.59%. The equity ratio remains stable at 49.9%, suggesting a balanced capital structure despite the decline in profitability.

Cash Flow

Operating cash flow is absent in the current year, a concerning sign for liquidity management. Previously, the operating cash flow to net income ratio was robust at 1.46, but the absence of positive cash flow this year indicates potential liquidity issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.65B	2.06B	2.32B	2.29B	1.85B
Gross Profit	597.91M	798.11M	786.86M	892.34M	774.31M
EBITDA	333.30M	384.14M	304.83M	493.93M	458.38M
Net Income	18.38M	146.37M	84.48M	183.51M	173.21M
Balance Sheet
Total Assets	6.30B	6.01B	6.45B	6.31B	5.49B
Cash, Cash Equivalents and Short-Term Investments	404.21M	407.18M	719.13M	330.48M	263.49M
Total Debt	1.90B	1.56B	1.68B	1.41B	1.47B
Total Liabilities	2.89B	2.63B	3.19B	3.14B	2.55B
Stockholders Equity	3.14B	3.13B	2.98B	2.91B	2.72B
Cash Flow
Free Cash Flow	-338.06M	53.73M	-40.25M	164.04M	-26.22M
Operating Cash Flow	188.69M	214.41M	129.75M	277.23M	145.74M
Investing Cash Flow	-587.44M	-196.78M	-217.58M	-107.71M	-166.61M
Financing Cash Flow	330.57M	-102.17M	186.59M	-97.11M	-42.60M

China Boton Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.78
• 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:3318, the sentiment is Positive. The current price of 1.78 is above the 20-day moving average (MA) of 1.72, above the 50-day MA of 1.64, and above the 200-day MA of 1.64, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 58.39 is Neutral, neither overbought nor oversold. The STOCH value of 60.94 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0640	75 Outperform	HK$580.25M	5.00	20.67%	19.80%	25.95%	44.16%
0408	74 Outperform	HK$905.97M	9.39	2.51%	13.66%	-1.70%	12.53%
2116	68 Neutral	HK$223.20M	14.72	6.12%	2.15%	-4.13%	-35.11%
0301	56 Neutral	HK$625.71M	―	-8.95%	―	-3.09%	-480.17%
3318	51 Neutral	HK$1.92B	98.37	0.59%	―	-21.05%	-87.68%
1047	46 Neutral	HK$114.45M	―	-1.32%	―	12.01%	82.32%
Sector *	43 Neutral	AU$1.40B	-6.18	-40.62%	4.19%	-4.78%	-42.91%

China Boton Group Co., Ltd. Corporate Events

China Boton Group Announces Board Composition and Roles

China Boton Group Company Limited has announced the composition of its board of directors and their respective roles and functions. The board comprises executive, non-executive, and independent non-executive directors, with Mr. Wang Ming Fan serving as the Chairman and CEO. The announcement also details the membership of board committees, which include the Audit, Nomination, and Remuneration Committees. This update provides clarity on the governance structure of the company, which could impact its strategic decision-making and stakeholder engagement.

China Boton Group Announces Executive Director Resignation

China Boton Group Co., Ltd. announced the resignation of Mr. Yang Ying Chun as an executive director, effective June 30, 2025, due to personal commitments. The company expressed gratitude for Mr. Yang’s contributions and confirmed there are no disagreements or issues related to his departure that need to be communicated to shareholders or the Hong Kong Stock Exchange.

China Boton Group Secures Shareholder Approval for AGM Resolutions

China Boton Group Co., Ltd. announced that all resolutions proposed at its 2025 Annual General Meeting were approved by shareholders. The resolutions included the re-election of directors, approval of financial statements, and granting of mandates to the board for share issuance and repurchase, reflecting strong shareholder support and potentially enhancing the company’s governance and operational flexibility.

China Boton Group Announces 2025 Annual General Meeting

China Boton Group Co., Ltd. has announced its upcoming annual general meeting scheduled for May 16, 2025, in Hong Kong. Key agenda items include the consideration of audited financial statements, re-election of directors, and re-appointment of the company’s auditor. Additionally, the meeting will address resolutions related to the issuance of additional shares, which could influence the company’s capital structure and shareholder value.