China PengFei Group Limited (3348) AI Stock Analysis

• Market Cap: HK$550.00M
• Dividend Yield: 4.13%
• Average Volume (3M): 54.53K
• Price to Earnings (P/E): 6.3
• Beta (1Y): -0.05
• Revenue Growth: -21.28%
• EPS Growth: -29.40%
• Country: HK
• Employees: 1,030
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.09
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 149,200
• 30 Day Avg. Volume: 54,533
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$1.00
• Price Target Upside: -9.09% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: HK$1.00 ▼(-9.09% Downside)

The stock's overall score is driven by its strong valuation metrics, indicating potential undervaluation and attractive dividend yield. However, financial performance concerns, particularly in cash flow and profitability, weigh down the score. Technical analysis suggests a cautiously optimistic outlook, but investors should be mindful of the mixed financial health.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability, allowing the company to withstand economic downturns and invest in growth opportunities.

Comprehensive Production Capabilities

Comprehensive production capabilities and innovation in manufacturing enhance competitive advantage, enabling the company to meet diverse customer needs and expand market share.

Diverse Clientele

A diverse clientele across various sectors reduces dependency on a single market, providing revenue stability and opportunities for cross-sector growth.

Negative Factors

Declining Profitability

Declining profitability suggests challenges in maintaining cost efficiency and pricing power, potentially impacting long-term earnings and competitiveness.

Deteriorating Cash Flow

Deteriorating cash flow limits the company's ability to fund operations and investments, posing risks to liquidity and financial flexibility.

Revenue Decline

A decline in revenue indicates potential market challenges or reduced demand, which could affect the company's growth prospects and market position.

China PengFei Group Limited Business Overview & Revenue Model

Company Description

China PengFei Group Limited manufactures and installs rotary kilns and grinding equipment, and related equipment in the People's Republic of China and internationally. It offers rotary kilns, preheaters, dryers, coolers, and control systems; tube and vertical roller mills, roller presses, crushers, and dust collectors; and spare parts for ball and vertical mills, and rotary kilns. The company also provides production line construction services comprising design, procurement, construction, and/or trial operations of production lines; manufactures building materials; and leases property and equipment. It serves customers in building materials production, metallurgy, chemical, and environmental protection industries. The company was founded in 1994 and is headquartered in Haian, the People's Republic of China.

How the Company Makes Money

China PengFei Group Limited generates revenue primarily through the manufacturing and sale of industrial equipment, including rotary kilns and grinding machinery, which are essential components in the production processes of cement, chemicals, and metallurgy. The company capitalizes on its expertise in industrial engineering to offer customized machinery solutions, thereby attracting a diverse clientele from various sectors. Additionally, the company may engage in strategic partnerships and collaborations to enhance its technological capabilities and expand its market reach, contributing to its earnings. However, specific data on partnerships or detailed financial breakdowns is not available.

China PengFei Group Limited Financial Statement Overview

Summary

Mixed financial performance with strong balance sheet due to low debt and high equity, but declining profitability and significant cash flow issues indicate potential liquidity problems.

Income Statement

The company has shown fluctuating revenue figures with a notable decline in the latest year. Gross profit margin and net profit margin have decreased, indicating potential issues with cost control or pricing power. The EBIT and EBITDA margins have also declined, suggesting reduced operational efficiency.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio, indicating financial stability. The equity ratio remains healthy, reflecting a solid reliance on equity financing. Return on equity has decreased due to lower net income, but the company's balance sheet remains strong.

Cash Flow

Cash flow performance is concerning with zero operating and free cash flow in the latest year, suggesting potential liquidity issues. Previous years showed positive free cash flow, but the downturn indicates possible challenges in cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.26B	1.73B	1.59B	1.83B	1.57B
Gross Profit	249.94M	374.56M	288.54M	303.04M	308.60M
EBITDA	55.66M	149.03M	123.47M	130.06M	125.31M
Net Income	67.28M	142.87M	122.22M	109.23M	131.94M
Balance Sheet
Total Assets	2.70B	2.46B	3.00B	2.78B	2.64B
Cash, Cash Equivalents and Short-Term Investments	713.76M	481.99M	445.68M	594.46M	584.79M
Total Debt	1.48M	55.31M	105.41M	44.00K	59.00K
Total Liabilities	1.76B	1.55B	2.20B	2.07B	1.99B
Stockholders Equity	934.16M	909.73M	803.86M	714.64M	645.41M
Cash Flow
Free Cash Flow	378.62M	21.33M	-66.62M	84.13M	139.39M
Operating Cash Flow	387.03M	46.41M	43.98M	204.93M	192.63M
Investing Cash Flow	-110.49M	74.09M	-167.76M	-198.00M	-211.85M
Financing Cash Flow	-100.25M	-88.08M	72.25M	-40.02M	-26.83M

China PengFei Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.10
• 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:3348, the sentiment is Positive. The current price of 1.1 is above the 20-day moving average (MA) of 1.08, above the 50-day MA of 1.08, and above the 200-day MA of 1.04, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 56.29 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3348.

China PengFei Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3348	65 Neutral	HK$550.00M	6.30	8.36%	4.13%	-21.28%	-29.40%
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
DKC	―	€38.98M	1.53	-2.06%	―	―	―
0365	54 Neutral	HK$429.22M	―	-5.21%	―	18.71%	61.54%
1597	45 Neutral	HK$640.00M	―	-18.61%	―	-29.48%	-116.46%
1645	44 Neutral	HK$592.17M	―	-6.34%	―	-2.88%	44.39%
1673	39 Underperform	HK$338.38M	―	-1.94%	―	-14.00%	87.71%

China PengFei Group Limited Corporate Events

China PengFei Group Sees Profit Growth Despite Revenue Decline in H1 2025

China PengFei Group Limited reported its interim results for the six months ending June 30, 2025, showing a revenue decrease of 9.7% to approximately RMB571.6 million compared to the previous year. Despite the drop in revenue, the company achieved a 5% increase in gross profit and a significant 26.7% rise in profit before tax, reaching approximately RMB48.4 million. The profit attributable to owners increased by 29.3% to RMB42.0 million, indicating improved operational efficiency and cost management. This performance suggests a positive impact on the company’s financial health, potentially strengthening its position in the industrial machinery market.

The most recent analyst rating on (HK:3348) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China PengFei Group Limited stock, see the HK:3348 Stock Forecast page.

China PengFei Group Schedules Board Meeting to Review Interim Results

China PengFei Group Limited has announced that its board of directors will meet on August 29, 2025, to review and approve the interim financial results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation for an interim dividend, which could have implications for the company’s financial distribution strategy and shareholder returns.

China PengFei Group’s Strategic Investment in Wealth Management

China PengFei Group Limited announced that its subsidiary, China Heavy Equipment, has subscribed to a Huatai Wealth Management Product worth HK$28,000,000. This transaction is classified as a discloseable transaction under the Hong Kong Stock Exchange Listing Rules, indicating its significance. The investment, funded by the company’s idle funds, is in a non-principal guaranteed product with a variable return, reflecting a strategic move to potentially enhance financial returns through diversified investments.

China PengFei Group Announces AGM Results and Leadership Changes

China PengFei Group Limited announced the results of its Annual General Meeting, where all proposed resolutions were passed unanimously. Key changes include the retirement and appointment of executive directors, as well as a change in the composition of the board committee, reflecting strategic adjustments in leadership and governance.

China PengFei Group Limited Announces Board Composition and Roles

China PengFei Group Limited has announced the composition of its board of directors and their respective roles within the company. The board includes a mix of executive and independent non-executive directors, with specific members assigned to various board committees such as Audit, Remuneration, Nomination, and Investment. This announcement outlines the leadership structure and governance framework, which is crucial for stakeholders to understand the company’s decision-making and strategic direction.