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

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$1.50
▼(-16.67% Downside)
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
Diversified product & market exposure
Broad product mix across cement, concrete and construction machinery plus domestic infrastructure demand and export activity creates multiple revenue streams. This diversification reduces concentration risk, supports volume stability across cycles, and enables cross-selling to institutional construction customers.
Manageable leverage and balanced capital structure
A ~0.60 debt/equity and ~50% equity ratio are conservative for a capital-intensive materials business. This balanced capital structure supports access to financing for maintenance capex and working capital, reducing refinancing pressure during downturns and preserving strategic flexibility.
Historical cash conversion capability
A prior OCF/net income ratio of ~1.46 demonstrates the company has historically converted earnings into cash effectively. That operational cash-generation track record implies management has levers on working capital and operations to restore liquidity if revenues stabilize, aiding medium-term recovery prospects.
Negative Factors
Material revenue decline
A ~20% YoY revenue drop reduces scale in a fixed-cost, capital-intensive industry, harming gross margins and fixed-cost absorption. Sustained top-line contraction undermines pricing power and supplier/customer relationships, making structural recovery and margin restoration more difficult without market share gains or new demand drivers.
Absence of operating cash flow this year
No operating cash flow in the most recent year is a critical liquidity issue for a manufacturing group. Persistent OCF deficits force reliance on external funding or asset disposals, constrain maintenance and growth capex, and increase bankruptcy or restructuring risk if cyclical pressures persist.
Sharp profitability deterioration
Margins collapsing to ~1.1% and the fall in ROE reflect weaker pricing or higher input costs and erode internal funding for reinvestment. Reduced profitability limits the company's ability to absorb shocks, invest in efficiency or sustainability initiatives, and weakens long-term competitiveness without structural margin recovery.

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

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

Company DescriptionChina 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 MoneyChina 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
45
Neutral
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
58
Neutral
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
35
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.22B1.65B2.06B2.32B2.29B1.85B
Gross Profit391.70M597.91M798.11M786.86M892.34M774.31M
EBITDA216.41M333.30M384.14M304.83M493.93M458.38M
Net Income-30.01M18.38M146.37M48.32M183.51M116.62M
Balance Sheet
Total Assets6.31B6.30B6.01B6.45B6.31B5.49B
Cash, Cash Equivalents and Short-Term Investments377.25M404.21M407.18M445.40M531.86M263.49M
Total Debt2.06B1.90B1.56B1.68B1.41B1.47B
Total Liabilities2.90B2.89B2.63B3.19B3.14B2.55B
Stockholders Equity3.13B3.14B3.13B2.98B2.91B2.72B
Cash Flow
Free Cash Flow-140.37M-338.06M53.73M-40.25M164.04M-26.22M
Operating Cash Flow85.13M188.69M214.41M129.75M277.23M145.74M
Investing Cash Flow-248.14M-587.44M-196.78M-217.58M-107.71M-166.61M
Financing Cash Flow144.55M330.57M-102.17M186.59M-97.11M-42.60M

China Boton Group Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.80
Price Trends
50DMA
1.77
Negative
100DMA
1.81
Negative
200DMA
1.81
Negative
Market Momentum
MACD
<0.01
Negative
RSI
49.80
Neutral
STOCH
42.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3318, the sentiment is Negative. The current price of 1.8 is above the 20-day moving average (MA) of 1.73, above the 50-day MA of 1.77, and below the 200-day MA of 1.81, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.80 is Neutral, neither overbought nor oversold. The STOCH value of 42.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
77
Outperform
HK$883.80M6.4320.67%8.71%25.95%44.12%
69
Neutral
HK$1.09B8.393.36%7.85%-5.37%25.20%
64
Neutral
HK$278.40M15.267.30%2.00%29.04%-1.55%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
56
Neutral
HK$606.89M-17.46-14.53%0.35%-153.95%
54
Neutral
HK$129.22M388.890.07%5.65%
49
Neutral
HK$1.94B-51.32-1.08%-23.46%-126.64%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3318
China Boton Group Co., Ltd.
1.75
0.23
15.13%
HK:0408
Yip's Chemical Holdings
1.91
0.59
44.37%
HK:1047
Ngai Hing Hong Co. Ltd.
0.35
0.03
9.37%
HK:2116
Jiangsu Innovative Ecological New Materials Ltd.
0.60
0.07
13.21%
HK:0301
SANVO Fine Chemicals Group Limited
1.29
0.20
18.35%
HK:0640
Infinity Development Holdings Co. Ltd.
2.69
1.01
60.41%

China Boton Group Co., Ltd. Corporate Events

China Boton Corrects Proxy Form Deadline for February Extraordinary General Meeting
Jan 19, 2026

China Boton Group Company Limited has issued a clarification regarding a clerical error in its 16 January 2026 circular for an extraordinary general meeting scheduled for 2 February 2026. The company corrected the submission deadline for proxy forms to its Hong Kong branch share registrar and transfer office, stating that proxies must be lodged no later than 3:00 p.m. on Saturday, 31 January 2026, instead of the previously stated 4:30 p.m. on Tuesday, 27 January 2026, while confirming that all other information in the circular remains unchanged, thereby aiming to ensure accurate procedural information for shareholders participating in the meeting.

The most recent analyst rating on (HK:3318) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Boton Group Co., Ltd. stock, see the HK:3318 Stock Forecast page.

China Boton Warns of RMB750 Million Goodwill Impairment on Tobacco Flavour Business
Jan 16, 2026

China Boton Group Company Limited has warned that it expects to book an impairment loss of at least approximately RMB750 million on the goodwill of its tobacco flavour businesses for the year ended 31 December 2025, following a revenue decline driven by self-developed tobacco flavours and a deteriorating market environment. The sizeable impairment is likely to result in a loss attributable to equity owners for 2025 and underscores the pressure on the Group’s core tobacco flavour operations, with final audited results and any adjustments to be confirmed in its annual results announcement due by the end of March 2026, prompting caution among shareholders and potential investors.

The most recent analyst rating on (HK:3318) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Boton Group Co., Ltd. stock, see the HK:3318 Stock Forecast page.

China Boton Calls EGM to Approve Major Shenzhen Land Resumption Deal
Jan 16, 2026

China Boton Group Company Limited has called an extraordinary general meeting in Hong Kong on 2 February 2026 for shareholders to vote on approving a land resumption arrangement involving its subsidiary Shenzhen Boton Flavor & Fragrances Co., Ltd. The proposed resolution seeks shareholder ratification of a land resumption agreement and a supplemental agreement with a local authority in Shenzhen and Shenzhen Baishuo New City Investment Co., Ltd., covering the compulsory resumption of approximately 64,662 square meters of land in Nanshan District, Shenzhen, and authorizes the board to execute all necessary documents and actions to implement the transaction, a move that could reshape the group’s asset base and operational footprint in the region.

The most recent analyst rating on (HK:3318) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Boton Group Co., Ltd. stock, see the HK:3318 Stock Forecast page.

China Boton Sets Book Closure and Date for 2026 Extraordinary General Meeting
Jan 14, 2026

China Boton Group Company Limited has scheduled an extraordinary general meeting (EGM) for 2 February 2026 and announced a book closure period from 28 January to 2 February 2026, during which no share transfers will be processed. Shareholders whose names appear on the company’s register at the close of business on 2 February 2026 will be eligible to attend and vote at the EGM, and the company plans to issue the meeting circular and formal notice in due course, signalling standard corporate governance procedures and enabling investors to prepare for participation in key corporate decisions.

The most recent analyst rating on (HK:3318) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Boton Group Co., Ltd. stock, see the HK:3318 Stock Forecast page.

China Boton Delays Circular on Major Land Resumption Disposal
Jan 2, 2026

China Boton Group Company Limited has announced a delay in sending a shareholder circular relating to a planned very substantial disposal connected to a land resumption. The circular, which will provide further details of the transaction and convene an extraordinary general meeting, was originally scheduled for despatch by 2 January 2026 but is now expected to be sent on or before 30 January 2026, indicating a short procedural postponement in the approval process for this significant asset disposal.

The most recent analyst rating on (HK:3318) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Boton Group Co., Ltd. stock, see the HK:3318 Stock Forecast page.

China Boton Clarifies Shenzhen Land Resumption Deal With Supplemental Agreement
Dec 29, 2025

China Boton Group has entered into a supplemental agreement concerning the previously announced very substantial disposal involving the resumption of land held by its subsidiary Shenzhen Boton in Nanshan District, Shenzhen. Under the new arrangement, Shenzhen Baishuo New City Investment Co., Ltd., a PRC leasing and business services company wholly owned by a Shenzhen state-owned enterprise, is introduced as the market entity that will assume the rights and obligations of the local authority under the existing land resumption agreement, while Shenzhen Boton’s rights remain unchanged. The supplemental agreement clarifies the relationships and recourse among the local authority, Baishuo Xincheng and Shenzhen Boton, including provisions that the local authority will continue to perform if Baishuo Xincheng cannot, and that Shenzhen Boton may take action against either party in case of breach. The board considers the terms fair and reasonable and believes the arrangement is in the interests of the company and its shareholders, suggesting the disposal process remains on track with reinforced contractual safeguards and no adverse change to Boton’s position.

The most recent analyst rating on (HK:3318) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Boton Group Co., Ltd. stock, see the HK:3318 Stock Forecast page.

China Boton Tightens Nomination Committee Rules to Bolster Governance and Board Diversity
Dec 22, 2025

China Boton Group Company Limited has updated the terms of reference for its Nomination Committee, originally adopted in 2012 and revised periodically, most recently in December 2025, to strengthen corporate governance and board oversight. The revised framework formalizes requirements that the committee be majority independent non-executive directors, meet at least twice a year, have at least one director of a different gender, and be empowered to obtain information and external professional advice, reflecting a stronger emphasis on board diversity, skills matrices, independence assessments and transparent nomination processes for directors, particularly independent non-executive directors, which may enhance board effectiveness and investor confidence.

The most recent analyst rating on (HK:3318) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Boton Group Co., Ltd. stock, see the HK:3318 Stock Forecast page.

China Boton Group Announces Major Land Resumption Agreement
Dec 9, 2025

China Boton Group Co., Ltd., through its indirect wholly-owned subsidiary Shenzhen Boton, has entered into a Land Resumption Agreement with the Local Authority. This agreement involves surrendering land use rights in exchange for a cash compensation of approximately HK$2.5 billion. The transaction is classified as a very substantial disposal under the Hong Kong Stock Exchange’s Listing Rules, necessitating shareholder approval. Trading in the company’s shares was temporarily halted but is set to resume following the announcement.

The most recent analyst rating on (HK:3318) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Boton Group Co., Ltd. stock, see the HK:3318 Stock Forecast page.

China Boton Group Announces Trading Halt Amid Major Disposal
Dec 8, 2025

China Boton Group Company Limited, a company incorporated in the Cayman Islands, has announced a trading halt on its shares on the Hong Kong Stock Exchange. This halt is pending the release of an announcement regarding a very substantial disposal under the Listing Rules, which could significantly impact the company’s operations and market positioning.

The most recent analyst rating on (HK:3318) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Boton Group Co., Ltd. stock, see the HK:3318 Stock Forecast page.

China Boton Group Announces Resignation of Non-Executive Director
Nov 28, 2025

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.

The most recent analyst rating on (HK:3318) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Boton Group Co., Ltd. stock, see the HK:3318 Stock Forecast page.

China Boton Group Announces New Board Composition
Nov 28, 2025

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.

The most recent analyst rating on (HK:3318) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Boton Group Co., Ltd. stock, see the HK:3318 Stock Forecast page.

China Boton Group Clarifies Share Award Scheme in 2024 Annual Report
Nov 14, 2025

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.

The most recent analyst rating on (HK:3318) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Boton Group Co., Ltd. stock, see the HK:3318 Stock Forecast page.

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: Dec 12, 2025