Chia Tai Enterprises International (3839) AI Stock Analysis

• Market Cap: HK$461.06M
• Dividend Yield: N/A
• Average Volume (3M): 355.14K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 1.17
• Revenue Growth: 76.15%
• EPS Growth: 334.56%
• Country: HK
• Employees: 900
• Sector: Consumer Defensive
• Sector Strength: 69
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.24
• Shares Outstanding: 240,718,300
• 10 Day Avg. Volume: 119,750
• 30 Day Avg. Volume: 355,140
• PEG Ratio: 0.04
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.06
• Enterprise Value/Market Cap: 0.09
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 0.81
• Enterprise Value/Ebitda: 1.26
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ―

The overall score of 66 reflects strong revenue growth and improving profit margins while recognizing the significant risk posed by cash flow challenges. The technical indicators suggest a bearish trend, but the low P/E ratio indicates the stock may be undervalued. The score accounts for these mixed signals, with financial performance and valuation being the primary drivers.

Chia Tai Enterprises International Business Overview & Revenue Model

Company Description

Chia Tai Enterprises International (3839) is a diversified conglomerate operating primarily in the agricultural and food sectors. The company focuses on producing and supplying a wide range of products, including animal feed, livestock farming, and food processing. With a commitment to sustainable practices and innovation, Chia Tai Enterprises aims to enhance agricultural productivity and food quality to meet the growing demands of global markets.

How the Company Makes Money

Chia Tai Enterprises International generates revenue through its diversified operations in the agricultural and food industries. The company's key revenue streams include the sale of animal feed, which supports livestock farming operations, and the production and distribution of processed food products. By leveraging its extensive supply chain and distribution networks, Chia Tai Enterprises capitalizes on economies of scale to maximize profitability. Additionally, strategic partnerships and investments in cutting-edge agricultural technologies and methods further bolster its earnings by improving efficiency and product quality, while expanding market reach.

Chia Tai Enterprises International Financial Statement Overview

Summary

Chia Tai Enterprises International shows strong revenue growth and improving profit margins, reflecting positive operational momentum. The balance sheet is solid with low leverage, indicating financial stability. However, the lack of positive cash flow is a significant risk, highlighting the need for better cash management.

Income Statement

Chia Tai Enterprises International has shown a strong revenue growth rate with a significant increase from 2023 to 2024. The gross profit margin stands at 15.90% for 2024, depicting healthy profitability. Additionally, the net profit margin improved to 3.63%, indicating better cost management and operational efficiency. However, there is room for improvement in EBIT and EBITDA margins, which suggest potential for enhanced operational performance.

Balance Sheet

The company's debt-to-equity ratio is 0.29, reflecting a conservative approach to leverage and strong equity financing. The equity ratio is 55.60%, indicating a robust financial position with a substantial portion of assets financed by equity. Return on Equity (ROE) is modest at 4.76% for 2024, suggesting average returns for shareholders. There is a need to enhance asset utilization and profitability to boost ROE.

Cash Flow

Chia Tai Enterprises International faces challenges in cash flow management, as evidenced by no reported operating or free cash flow for 2024. The absence of positive cash flow suggests potential liquidity constraints. Historically, the company has struggled with consistent free cash flow generation, highlighting the need for improved cash flow efficiency and cost control.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
307.75M	173.98M	159.24M	142.41M	93.58M
	Gross Profit
48.93M	33.77M	39.19M	34.76M	24.90M
	EBIT
11.18M	-3.39M	-1.65M	13.30M	19.05M
	EBITDA
17.51M	11.29M	5.17M	20.86M	23.73M
	Net Income Common Stockholders
11.17M	2.55M	-4.26M	26.70M	16.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.38M	37.61M	30.86M	31.09M	32.26M
	Total Assets
422.21M	377.37M	350.58M	365.22M	330.70M
	Total Debt
69.17M	78.17M	49.10M	42.61M	20.50M
	Net Debt
36.79M	40.56M	18.24M	11.52M	-11.76M
	Total Liabilities
161.70M	125.36M	94.83M	81.69M	80.09M
	Stockholders Equity
234.77M	228.43M	230.85M	253.06M	228.00M
Cash Flow		Free Cash Flow
0.00	-27.17M	-10.38M	-28.46M	-9.23M
	Operating Cash Flow
0.00	-16.06M	5.63M	-10.91M	4.03M
	Investing Cash Flow
0.00	-7.14M	-15.64M	-9.84M	-10.87M
	Financing Cash Flow
0.00	30.23M	10.38M	19.36M	249.00K

Chia Tai Enterprises International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.82
• 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:3839, the sentiment is Positive. The current price of 1.82 is below the 20-day moving average (MA) of 1.85, above the 50-day MA of 1.69, and above the 200-day MA of 1.48, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 34.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3839.

Chia Tai Enterprises International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1066	77 Outperform	$26.32B	11.79	8.95%	4.62%	-3.09%	0.67%
2380	76 Outperform	$38.97B	10.68	8.59%	5.55%	20.21%	23.24%
6862	69 Neutral	$86.84B	16.53	42.85%	6.55%	1.35%	4.06%
3839	66 Neutral	HK$461.06M	3.37	7.60%	―	76.15%	334.56%
Sector *	65 Neutral	$8.88B	15.01	4.67%	6.15%	3.61%	-2.60%
2319	61 Neutral	HK$70.20B	622.15	0.21%	2.99%	-11.90%	-97.93%

Chia Tai Enterprises International Corporate Events

Chia Tai Enterprises to Review Q1 2025 Financial Results

Chia Tai Enterprises International Limited has announced that its board of directors will convene on May 15, 2025, to approve the unaudited financial results for the first quarter of 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the year.

Chia Tai Enterprises Schedules AGM to Discuss Key Financial and Governance Matters

Chia Tai Enterprises International Limited has announced its upcoming Annual General Meeting (AGM) to be held on June 10, 2025, in Hong Kong. The meeting will address several key agenda items, including the adoption of the company’s financial statements for 2024, the re-election of directors, and the re-appointment of KPMG as auditors. Additionally, the board seeks approval to issue new shares, which could potentially impact the company’s capital structure and shareholder value.

Chia Tai Enterprises Revises Annual Caps Amid Rising Demand

Chia Tai Enterprises International Limited has announced a revision of its annual caps for the years 2025 and 2026 under the 2023 Master HOEL Purchase Agreement due to a significant increase in sales to the HOEL Group. The company plans to increase the caps from the existing US$194.3 million and US$218.8 million to US$506.1 million and US$556.7 million respectively, reflecting anticipated growth in demand for its animal health products. This strategic move is expected to enhance the company’s market position and meet the expanding business needs of the HOEL Group, as well as accommodate potential increases in market prices and demand.

Chia Tai Enterprises Reports Strong Financial Growth and Proposes New Share Option Scheme

Chia Tai Enterprises International Limited has announced its annual financial results for the year ending December 31, 2024, reporting a substantial increase in revenue to US$307.7 million, up from US$173.9 million in 2023. The profit attributable to shareholders rose to US$11.2 million, reflecting a significant improvement in the company’s financial performance, though comprehensive income was affected by foreign exchange and investment impacts. Additionally, the company proposed the adoption of a new share option scheme to replace the existing one, which may impact the company’s stockholder strategy and employee incentives.