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

• Market Cap: HK$1.98B
• Dividend Yield: N/A
• Average Volume (3M): 54.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -23.46%
• EPS Growth: -126.64%
• Country: HK
• Employees: 1,245
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.01
• Shares Outstanding: 1,080,512,200
• 10 Day Avg. Volume: 24,400
• 30 Day Avg. Volume: 54,133
• PEG Ratio: -0.91
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.89
• P/FCF Ratio: -4.35
• 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): HK$19.95B

• Rating: 49 Neutral
• Price Target: HK$2.00 ▲(9.29% Upside)

The overall stock score of 49 reflects significant financial challenges, including declining revenue and profitability, and the absence of operating cash flow. Technical analysis shows some short-term bullish momentum, but valuation metrics indicate potential overvaluation. The lack of earnings call data and corporate events further limits positive influences on the score.

Positive Factors

Market Position

China Boton Group's strong position in the domestic market, driven by infrastructure and urbanization, provides a stable revenue base and growth potential.

Revenue Diversification

Diversified revenue streams from partnerships and government contracts reduce dependency on a single market, enhancing financial stability.

Technological Advancements

Investing in technology for efficiency and sustainability strengthens competitive advantage and aligns with global environmental trends.

Negative Factors

Declining Revenue

A 20% revenue decline indicates challenges in market demand or competition, potentially impacting long-term growth and profitability.

Profit Margin Decline

Falling profit margins suggest cost pressures or pricing challenges, which could undermine financial health if not addressed.

Cash Flow Issues

The absence of operating cash flow raises concerns about liquidity and the company's ability to fund operations and growth initiatives.

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 generates revenue through multiple streams, primarily from the sale of its core products, including cement, concrete, and construction materials. The company benefits from a robust domestic market in China, where infrastructure development and urbanization drive demand. Additionally, revenue is bolstered by partnerships with construction firms, real estate developers, and government contracts for public infrastructure projects. The company also explores international markets, exporting its products to various countries, further diversifying its revenue sources. The combination of these factors, along with a focus on operational efficiency and technological advancements, contributes to the company's overall earnings.

China Boton Group Co., Ltd. Financial Statement Overview

Summary

China Boton Group Co., Ltd. is facing significant challenges with declining revenue, profitability, and cash flow management. The balance sheet remains stable with manageable leverage, but the absence of operating cash flow and declining profit margins raise concerns about 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.22B	1.65B	2.06B	2.32B	2.29B	1.85B
Gross Profit	391.70M	597.91M	798.11M	786.86M	892.34M	774.31M
EBITDA	216.41M	333.30M	384.14M	304.83M	493.93M	458.38M
Net Income	-30.01M	18.38M	146.37M	48.32M	183.51M	116.62M
Balance Sheet
Total Assets	6.31B	6.30B	6.01B	6.45B	6.31B	5.49B
Cash, Cash Equivalents and Short-Term Investments	377.25M	404.21M	407.18M	445.40M	531.86M	263.49M
Total Debt	2.06B	1.90B	1.56B	1.68B	1.41B	1.47B
Total Liabilities	2.90B	2.89B	2.63B	3.19B	3.14B	2.55B
Stockholders Equity	3.13B	3.14B	3.13B	2.98B	2.91B	2.72B
Cash Flow
Free Cash Flow	-140.37M	-338.06M	53.73M	-40.25M	164.04M	-26.22M
Operating Cash Flow	85.13M	188.69M	214.41M	129.75M	277.23M	145.74M
Investing Cash Flow	-248.14M	-587.44M	-196.78M	-217.58M	-107.71M	-166.61M
Financing Cash Flow	144.55M	330.57M	-102.17M	186.59M	-97.11M	-42.60M

China Boton Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.83
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 1.83 is above the 20-day moving average (MA) of 1.83, above the 50-day MA of 1.80, and above the 200-day MA of 1.78, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 50.36 is Neutral, neither overbought nor oversold. The STOCH value of 16.22 is Positive, 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$763.43M	5.85	20.67%	8.71%	25.95%	44.12%
0408	69 Neutral	HK$1.07B	8.26	3.36%	7.89%	-5.37%	25.20%
2116	68 Neutral	HK$244.80M	13.42	7.30%	1.96%	29.04%	-1.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0301	56 Neutral	HK$630.42M	-18.13	-14.53%	―	0.35%	-153.95%
1047	54 Neutral	HK$147.68M	444.44	0.07%	―	5.65%	―
3318	49 Neutral	HK$1.98B	-53.67	-1.08%	―	-23.46%	-126.64%

China Boton Group Co., Ltd. Corporate Events

China Boton Group Announces Resignation of Non-Executive Director

China Boton Group Company Limited has announced the resignation of Ms. Wan Shuk Ching, Candy from her position as a non-executive director, effective November 30, 2025. The resignation is due to her personal commitments and professional obligations. Ms. Wan has confirmed that there are no disagreements with the Board or issues that need to be communicated to shareholders. The Board expressed gratitude for her contributions during her tenure.

China Boton Group Announces New Board Composition

China Boton Group Company Limited, a company incorporated in the Cayman Islands, has announced the composition of its board of directors effective from November 30, 2025. The board includes a mix of executive and independent non-executive directors, with Mr. Wang Ming Fan serving as the Executive Director, Chairman, and CEO. The announcement also details the membership of board committees, highlighting the roles of directors in the audit, nomination, and remuneration committees. This restructuring of the board is likely to impact the company’s governance and strategic direction, potentially influencing its market position and stakeholder relations.

China Boton Group Clarifies Share Award Scheme in 2024 Annual Report

China Boton Group Co., Ltd. has issued a supplemental announcement regarding its Share Award Scheme as outlined in its 2024 Annual Report. The announcement clarifies the conditions under which the vesting period for awarded shares may be shortened, such as replacing forfeited awards for new employees or in cases of termination due to death or disability. No share awards were granted, lapsed, or canceled under the scheme up to the end of 2024. This supplemental information is intended to provide shareholders and potential investors with additional clarity on the company’s share award policies.