China PengFei Group Limited (3348) AI Stock Analysis

• Market Cap: HK$640.00M
• Dividend Yield: 3.34%
• Average Volume (3M): 98.73K
• Price to Earnings (P/E): 7.6
• Beta (1Y): <0.01
• 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: 88,000
• 30 Day Avg. Volume: 98,733
• PEG Ratio: -0.14
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 1.38
• 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): N/A

• Rating: 67 Neutral
• Price Target: HK$1.50 ▲(20.97% Upside)

The stock's overall score is driven by strong technical momentum and attractive valuation metrics. However, financial performance concerns, particularly in cash flow and declining profitability, weigh on the score. Investors should be cautious of potential liquidity issues despite the stock's current positive price trends.

Positive Factors

Strong Market Position

The company's leadership in the cement and mining equipment sectors positions it well to capitalize on industry demand and maintain competitive advantages.

Diverse Revenue Streams

Multiple revenue streams from equipment sales and long-term service contracts provide stability and reduce dependency on a single market.

Low Leverage

Low leverage enhances financial stability, allowing the company to navigate economic fluctuations and invest in growth opportunities.

Negative Factors

Declining Profitability

Decreasing margins suggest challenges in cost control or pricing power, potentially impacting long-term profitability and competitiveness.

Cash Flow Concerns

Lack of cash flow generation raises concerns about liquidity and the company's ability to fund operations and growth initiatives.

Revenue Decline

Significant revenue decline indicates potential market share loss or reduced demand, challenging the company's growth prospects.

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 generates revenue through multiple key streams, including the sale of cement production equipment, mining machinery, and related services. The company earns significant income from the design, manufacturing, and installation of large-scale equipment such as rotary kilns, ball mills, and crushers. Additionally, China PengFei benefits from long-term contracts and partnerships with construction and mining firms, which provide consistent revenue through ongoing maintenance and aftermarket services. The company's strategic collaborations with international clients also contribute to its earnings, as they expand its market reach and enable access to emerging markets.

China PengFei Group Limited Financial Statement Overview

Summary

The company's financial performance is mixed. While the balance sheet is strong with low leverage, the income statement shows declining profitability and efficiency. Cash flow issues are particularly concerning, with zero operating and free cash flow in the latest year, indicating potential liquidity challenges.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.20B	1.26B	1.73B	1.59B	1.83B	1.57B
Gross Profit	256.00M	249.94M	374.56M	288.54M	303.04M	308.60M
EBITDA	67.77M	55.66M	149.03M	123.47M	130.06M	125.31M
Net Income	77.97M	67.28M	142.87M	122.22M	109.23M	131.94M
Balance Sheet
Total Assets	2.71B	2.70B	2.46B	3.00B	2.78B	2.64B
Cash, Cash Equivalents and Short-Term Investments	811.24M	713.76M	481.99M	445.68M	594.46M	584.79M
Total Debt	1.57M	1.48M	55.31M	105.41M	44.00K	59.00K
Total Liabilities	1.75B	1.76B	1.55B	2.20B	2.07B	1.99B
Stockholders Equity	955.96M	934.16M	909.73M	803.86M	714.64M	645.41M
Cash Flow
Free Cash Flow	231.24M	378.62M	21.33M	-66.62M	84.13M	139.39M
Operating Cash Flow	236.32M	387.03M	46.41M	43.98M	204.93M	192.63M
Investing Cash Flow	-148.94M	-110.49M	74.09M	-167.76M	-198.00M	-211.85M
Financing Cash Flow	-63.58M	-100.25M	-88.08M	72.25M	-40.02M	-26.83M

China PengFei Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.24
• 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 1.24 is below the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.24, and above the 200-day MA of 1.10, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 27.08 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	67 Neutral	HK$640.00M	7.61	8.36%	3.34%	-21.28%	-29.40%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1645	48 Neutral	HK$2.07B	-107.31	-6.34%	―	-2.88%	44.39%
0679	46 Neutral	HK$366.66M	-12.82	-2.06%	3.26%	-0.29%	-113.17%
1597	46 Neutral	HK$595.00M	-13.31	-18.61%	―	-30.04%	-116.46%
0365	46 Neutral	HK$421.95M	-24.17	-5.21%	―	18.71%	61.54%
1673	39 Underperform	HK$376.69M	-30.26	-2.71%	―	-4.33%	55.43%