Chia Tai Enterprises International (3839) AI Stock Analysis

• Market Cap: HK$1.55B
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.29
• Revenue Growth: 124.78%
• EPS Growth: 889.01%
• Country: HK
• Employees: 900
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.24
• Shares Outstanding: 240,718,300
• 10 Day Avg. Volume: 631,570
• 30 Day Avg. Volume: 1,418,498
• PEG Ratio: 0.75
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.13
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 4.05
• Enterprise Value/Ebitda: 6.27
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: HK$7.00 ▲(14.38%Upside)

Chia Tai Enterprises International scores well due to its strong technical momentum and reasonable valuation. However, the lack of positive cash flow poses a significant risk. The stock is currently overbought, suggesting caution despite its upward trend.

Chia Tai Enterprises International Business Overview & Revenue Model

Company Description

Chia Tai Enterprises International (3839) is a multinational conglomerate operating primarily in the agriculture and consumer goods sectors. The company is engaged in the production and distribution of various agricultural products, including animal feed, seeds, and fertilizers. Additionally, it is involved in the manufacturing and sale of consumer goods, with a focus on providing high-quality products to enhance agricultural productivity and consumer lifestyle.

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: 6.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 6.12 is above the 20-day moving average (MA) of 5.18, above the 50-day MA of 3.29, and above the 200-day MA of 2.01, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 74.77 is Negative, neither overbought nor oversold. The STOCH value of 88.68 is Negative, 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	73 Outperform	HK$1.55B	11.15	7.60%	―	124.78%	889.01%
3737	70 Outperform	HK$719.95M	6.96	8.81%	5.88%	5.79%	-43.49%
0239	70 Outperform	HK$769.75M	9.79	10.50%	8.36%	-8.64%	-25.13%
Sector *	60 Neutral	HK$20.78B	12.31	0.81%	4.16%	2.72%	-47.45%
0897	55 Neutral	HK$354.41M	50.00	0.55%	9.52%	-66.75%	-83.83%
1652	46 Neutral	HK$235.27M	―	-40.39%	―	-43.73%	-434.56%

Chia Tai Enterprises International Corporate Events

Chia Tai Enterprises International Secures Shareholder Approval for Key Resolutions at AGM

Chia Tai Enterprises International Limited announced the successful passage of all proposed resolutions during its Annual General Meeting held on June 10, 2025. These resolutions included the re-election of directors, the authorization of the board to fix directors’ remuneration, the re-appointment of KPMG as auditors, and the adoption of a new share option scheme. The approval of these resolutions signifies strong shareholder support and positions the company for continued strategic governance and operational flexibility.

Chia Tai Enterprises Approves Revised Annual Caps at Special General Meeting

Chia Tai Enterprises International Limited announced the successful passing of a proposed resolution during their Special General Meeting held on June 10, 2025. The resolution, concerning the Proposed Revised 2025 and 2026 Annual Caps of continuing connected transactions, was approved unanimously by the votes cast. This decision reflects the company’s ongoing commitment to aligning its operations with strategic financial goals, potentially impacting its market positioning and shareholder interests positively.

Chia Tai Enterprises Reports Strong Q1 2025 Results

Chia Tai Enterprises International Limited reported a significant increase in its unaudited consolidated results for the first quarter of 2025, with revenue rising to US$165,041,000 from US$54,654,000 in the same period of 2024. The company’s profit before tax also saw a substantial increase, reaching US$11,579,000 compared to US$1,876,000 in the previous year. This growth reflects improved operational performance and a positive impact on the company’s financial health, benefiting both shareholders and non-controlling interests.

Chia Tai Enterprises Announces Special General Meeting for Revised Financial Caps

Chia Tai Enterprises International Limited has announced a special general meeting to be held on June 10, 2025, in Hong Kong. The meeting aims to approve revised annual caps for transactions under the 2023 Master HOEL Purchase Agreement, with new maximum aggregate annual values set at US$506.1 million for 2025 and US$556.7 million for 2026. This adjustment reflects the company’s strategic financial planning and could impact its operational budget and stakeholder expectations.

Chia Tai Enterprises Announces Delay in Circular Dispatch

Chia Tai Enterprises International Limited has announced a delay in the dispatch of a circular related to the Proposed Revised 2025 and 2026 Annual Caps. The circular, which includes recommendations and advice for shareholders, was initially expected by May 9, 2025, but will now be dispatched by May 13, 2025, due to the time required for printing.

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.