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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)

Rating:53Neutral
Price Target:
HK$2.00
▲(0.00%Upside)
The overall stock score of 52.9 reflects significant financial challenges faced by the company, particularly in terms of revenue decline and cash flow issues. While technical analysis suggests positive momentum, the high P/E ratio raises concerns about overvaluation. The absence of earnings call data and corporate events further highlights the reliance on existing indicators.

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 Co., Ltd. (3318) is a leading enterprise engaged in the research, development, production, and sale of flavors and fragrances. The company operates primarily in the consumer goods sector, providing essential ingredients to a wide range of industries including food and beverage, tobacco, personal care, and household products. With a strong focus on innovation and quality, China Boton Group has established itself as a key player in the flavor and fragrance market, serving both domestic and international clients.
How the Company Makes MoneyChina Boton Group Co., Ltd. generates revenue through the sale of its flavors and fragrances to various industries, particularly focusing on food and beverage, tobacco, and personal care sectors. The company earns income by developing customized and proprietary flavor and fragrance solutions that cater to the specific needs of its clients. Strategic partnerships and collaborations with major consumer goods companies enhance its market reach and capabilities, further contributing to its earnings. Additionally, investment in research and development enables the company to continuously innovate and expand its product offerings, ensuring a competitive edge and sustained revenue growth.

China Boton Group Co., Ltd. Financial Statement Overview

Summary
The company is experiencing significant financial challenges, with declining revenue, profitability, and cash flow management. While the balance sheet shows manageable leverage, the absence of operating cash flow and declining profit margins are major concerns.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.65B2.06B2.32B2.29B1.85B
Gross Profit597.91M798.11M786.86M892.34M774.31M
EBITDA333.30M384.14M304.83M493.93M458.38M
Net Income18.38M146.37M84.48M183.51M173.21M
Balance Sheet
Total Assets6.30B6.01B6.45B6.31B5.49B
Cash, Cash Equivalents and Short-Term Investments404.21M407.18M719.13M330.48M263.49M
Total Debt1.90B1.56B1.68B1.41B1.47B
Total Liabilities2.89B2.63B3.19B3.14B2.55B
Stockholders Equity3.14B3.13B2.98B2.91B2.72B
Cash Flow
Free Cash Flow-338.06M53.73M-40.25M164.04M-26.22M
Operating Cash Flow188.69M214.41M129.75M277.23M145.74M
Investing Cash Flow-587.44M-196.78M-217.58M-107.71M-166.61M
Financing Cash Flow330.57M-102.17M186.59M-97.11M-42.60M

China Boton Group Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.00
Price Trends
50DMA
1.75
Positive
100DMA
1.66
Positive
200DMA
1.64
Positive
Market Momentum
MACD
0.08
Negative
RSI
62.97
Neutral
STOCH
69.57
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 2 is above the 20-day moving average (MA) of 1.88, above the 50-day MA of 1.75, and above the 200-day MA of 1.64, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 62.97 is Neutral, neither overbought nor oversold. The STOCH value of 69.57 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 (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$568.98M4.9020.67%10.40%25.95%44.16%
74
Outperform
HK$956.61M9.912.51%8.24%-1.70%12.53%
68
Neutral
HK$230.40M15.196.12%4.34%-4.13%-35.11%
59
Neutral
HK$17.74B4.73-5.52%3.33%-3.57%-61.41%
56
Neutral
HK$621.01M-8.95%-3.09%-480.17%
56
Neutral
HK$119.99M-1.32%12.01%82.32%
53
Neutral
HK$2.16B108.700.59%-21.05%-87.68%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3318
China Boton Group Co., Ltd.
1.98
0.17
9.39%
HK:0640
Infinity Development Holdings Co. Ltd.
1.01
0.35
53.03%
HK:0301
SANVO Fine Chemicals Group Limited
1.35
0.30
28.57%
HK:2116
Jiangsu Innovative Ecological New Materials Ltd.
0.48
0.12
33.33%
HK:1047
Ngai Hing Hong Co. Ltd.
0.32
-0.03
-8.57%
HK:0408
Yip's Chemical Holdings
1.70
0.34
24.82%

China Boton Group Co., Ltd. Corporate Events

China Boton Group Issues Profit Warning Amidst Industry Challenges
Jul 14, 2025

China Boton Group Co., Ltd. has issued a profit warning, anticipating a more than 80% decrease in net profit for the first half of 2025 compared to the same period in 2024. This decline is attributed to increased competition, tighter regulations, and higher research and development expenses. Despite these challenges, the company is negotiating potential collaborations with significant companies, aiming to leverage its R&D strengths to enhance business performance in the latter half of the year.

China Boton Group Announces Board Composition and Roles
Jun 30, 2025

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
Jun 13, 2025

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
May 16, 2025

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.

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 12, 2025