Chia Tai Enterprises International (3839) AI Stock Analysis

• Market Cap: $2.38B
• Dividend Yield: N/A
• Average Volume (3M): 989.56K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.50
• Revenue Growth: 161.65%
• EPS Growth: 951.04%
• Country: HK
• Employees: 900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.29
• Shares Outstanding: 240,718,300
• 10 Day Avg. Volume: 1,010,424
• 30 Day Avg. Volume: 989,559
• 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: 0.56
• Enterprise Value/Revenue: 4.37
• Enterprise Value/Gross Profit: 27.48
• Enterprise Value/Ebitda: 75.25
• 1Y Price Target: $10.03
• Price Target Upside: 11.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: HK$10.00 ▲(11.11% Upside)

Chia Tai Enterprises International's stock is supported by strong technical momentum and reasonable valuation. However, the lack of positive cash flow is a significant risk that could impact future performance. The stock's overbought condition suggests caution in the short term.

Chia Tai Enterprises International Business Overview & Revenue Model

Company Description

Chia Tai Enterprises International Limited engages in the manufacture and sale of chlortetracycline (CTC) and other related products in Mainland China, the Asia Pacific, the Americas, Europe, and internationally. It operates through two segments, Biochemical and Industrial. The Biochemical segment manufactures and sells CTC premix and CTC hydrochloride products, which are used as feed additives to promote growth of livestock, prevent or cure animal diseases, and enhance feed efficiency under the Shihao and Citifac brands. The Industrial segment engages in the sale, leasing, and servicing of caterpillar machinery equipment, including excavators, power generators, bulldozers, and compactors, as well as spare parts; and manufacture and sale of carburetors and automotive parts for automobile and motorcycle manufacturers. The company was incorporated in 1987 and is based in Central, Hong Kong. Chia Tai Enterprises International Limited is a subsidiary of Charoen Pokphand Foods Public Company Limited.

How the Company Makes Money

Chia Tai Enterprises International generates revenue through a diversified business model that includes the sale of agricultural products such as animal feed, seeds, and fertilizers. The company leverages its extensive distribution network to reach farmers and agricultural businesses, ensuring a steady demand for its products. Additionally, the company's involvement in the consumer goods sector allows it to tap into the retail market, offering a range of products that cater to household needs. Strategic partnerships with local and international businesses also play a crucial role in expanding its market reach and enhancing its revenue streams. The company's earnings are further supported by its commitment to innovation and product development, which helps maintain its competitive edge in the industry.

Chia Tai Enterprises International Financial Statement Overview

Summary

Chia Tai Enterprises International shows strong revenue growth and improving profit margins, suggesting positive operational momentum. The balance sheet indicates financial stability with low leverage, but the absence of positive cash flow presents a significant risk that requires 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
EBITDA	17.51M	11.29M	5.17M	20.86M	23.73M
Net Income	11.17M	2.55M	-4.26M	26.70M	16.25M
Balance Sheet
Total Assets	422.21M	377.37M	350.58M	365.22M	330.70M
Cash, Cash Equivalents and Short-Term Investments	32.38M	37.61M	30.86M	31.09M	32.26M
Total Debt	69.17M	78.17M	49.10M	42.61M	20.50M
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	-2.56M	-27.17M	-10.38M	-28.46M	-9.23M
Operating Cash Flow	11.29M	-16.06M	5.63M	-10.91M	4.03M
Investing Cash Flow	-9.27M	-7.14M	-15.64M	-9.84M	-10.87M
Financing Cash Flow	-7.07M	30.23M	10.38M	19.36M	249.00K

Chia Tai Enterprises International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 9 is above the 20-day moving average (MA) of 7.54, above the 50-day MA of 6.66, and above the 200-day MA of 3.08, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 66.08 is Neutral, neither overbought nor oversold. The STOCH value of 77.91 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
3839	71 Outperform	$2.38B	11.65	10.89%	―	161.65%	951.04%
3737	70 Outperform	609.84M	27.38	0.00%	6.94%	-1.99%	-81.52%
0239	66 Neutral	772.87M	10.89	10.74%	8.32%	-24.96%	-26.43%
0897	52 Neutral	506.30M	71.43	0.60%	6.67%	-4.92%	0.00%
1652	49 Neutral	977.85M	-4.02	-51.07%	―	-43.46%	-96.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Chia Tai Enterprises International Corporate Events

Chia Tai Enterprises Reports Strong Interim Results for 2025

Chia Tai Enterprises International Limited has announced its unaudited consolidated results for the six months ending June 30, 2025. The company reported a significant increase in revenue, reaching US$323.3 million compared to US$108 million in the same period last year. The gross profit also rose to US$41.8 million from US$18 million. The profit attributable to shareholders increased to US$17 million from US$2 million, reflecting a substantial improvement in financial performance. The total comprehensive income for the period was US$24.4 million, a notable turnaround from a loss in the previous year.

Chia Tai Enterprises Schedules Board Meeting for Interim Results and Dividend Decision

Chia Tai Enterprises International Limited has announced a board meeting scheduled for August 11, 2025, to approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the payment of an interim dividend, which could have implications for the company’s financial strategy and shareholder returns.