Global Sweeteners Holdings Limited (3889) AI Stock Analysis

• Market Cap: HK$195.07M
• Dividend Yield: N/A
• Average Volume (3M): 744.44K
• Price to Earnings (P/E): 2.0
• Beta (1Y): -0.24
• Revenue Growth: 41.43%
• EPS Growth: N/A
• Country: HK
• Employees: 530
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Packaged Foods
• EPS (TTM): -0.05
• Shares Outstanding: 1,931,374,900
• 10 Day Avg. Volume: 1,938,600
• 30 Day Avg. Volume: 744,443
• PEG Ratio: 0.05
• Price to Book (P/B): -0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.11
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The most significant factors affecting the score are the company's weak financial health and liquidity issues, which pose a substantial risk. Despite potential undervaluation indicated by a low P/E ratio, the financial instability and lack of dividend yield detract from the investment appeal. Technical indicators show neutral trends, offering no clear direction. Strategic changes are needed to improve the company's financial standing.

Global Sweeteners Holdings Limited Business Overview & Revenue Model

Company Description

Global Sweeteners Holdings Limited (3889) is a Hong Kong-based investment holding company that operates primarily in the food and beverage industry. The company specializes in the production and sale of corn-based sweeteners and related products, catering to both domestic and international markets. Its core products include corn syrup, corn starch, and other corn-derived sweeteners that are used across various sectors, including food and beverage manufacturing, pharmaceuticals, and industrial applications.

How the Company Makes Money

Global Sweeteners Holdings Limited generates revenue through the manufacture and sale of a variety of corn-based sweeteners. The company's primary revenue streams include the sale of corn syrup and corn starch, which are essential ingredients in the production of soft drinks, confectioneries, and baked goods. Additionally, the company supplies sweeteners for industrial applications and pharmaceuticals, expanding its clientele and revenue base. Strategic partnerships with food and beverage manufacturers enhance its market reach and distribution capabilities. The company also benefits from economies of scale in its production processes, allowing it to maintain competitive pricing and margins in the industry.

Global Sweeteners Holdings Limited Financial Statement Overview

Summary

Global Sweeteners Holdings Limited is in a financially fragile state. Despite revenue growth, profitability is weak with negative operational margins. The balance sheet is concerning due to negative equity and high leverage. Cash flow issues further exacerbate the risk, with zero operating and free cash flow suggesting liquidity concerns. Strategic restructuring may be necessary to improve financial health.

Income Statement

The income statement shows a challenging financial situation. The Net Profit Margin is positive at about 10.7%, but this is misleading as it is skewed by a one-time item boosting net income, given prior negative results. Revenue growth is volatile but showed improvement from 2022 to 2023 with a 50.1% increase. However, EBIT and EBITDA margins are negative, indicating operational challenges. Overall, profitability is weak.

Balance Sheet

The balance sheet reflects financial instability. The Debt-to-Equity ratio is negative due to negative equity, highlighting high leverage and risk. The Equity Ratio is also negative, indicating more liabilities than assets. The company's financial structure is precarious, with significant liabilities overshadowing its assets.

Cash Flow

Cash flow analysis indicates severe weaknesses. Operating Cash Flow is zero in the latest year, a decline from positive cash flow in 2023. The Free Cash Flow is also zero, showing a lack of cash available after capital expenditures. This raises concerns about liquidity and the ability to sustain operations without external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	623.46M	440.81M	359.57M	728.10M	769.02M
Gross Profit	31.30M	36.62M	27.27M	41.59M	77.87M
EBITDA	120.27M	-23.12M	-31.48M	48.22M	201.39M
Net Income	66.62M	289.52M	-212.49M	-96.26M	-8.73M
Balance Sheet
Total Assets	568.84M	575.36M	687.11M	935.08M	1.30B
Cash, Cash Equivalents and Short-Term Investments	12.22M	13.55M	4.28M	7.83M	21.28M
Total Debt	299.74M	441.08M	796.48M	929.61M	996.66M
Total Liabilities	787.09M	957.21M	1.37B	1.44B	1.73B
Stockholders Equity	-218.25M	-375.92M	-675.04M	-494.19M	-418.63M
Cash Flow
Free Cash Flow	-192.38M	87.80M	13.14M	-285.45M	-30.01M
Operating Cash Flow	-114.66M	88.39M	13.28M	-283.86M	-20.20M
Investing Cash Flow	-76.51M	-589.00K	19.64M	383.12M	104.34M
Financing Cash Flow	182.97M	-78.30M	-36.13M	-112.93M	-94.61M

Global Sweeteners Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3889, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 24.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3889.

Global Sweeteners Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1837	79 Outperform	HK$1.73B	8.41	12.91%	7.03%	9.63%	20.08%
2317	77 Outperform	HK$1.02B	8.15	5.39%	16.34%	-1.88%	129.25%
Sector *	69 Neutral	S$3.57B	17.91	-11.82%	7.22%	5.14%	-8.01%
3838	65 Neutral	HK$1.36B	2.60	12.45%	23.11%	-5.08%	359.16%
1767	65 Neutral	HK$295.00M	7.99	8.18%	2.40%	>-0.01%	16.04%
0809	57 Neutral	HK$819.48M	1.11		―	45.65%	-81.70%
3889	45 Neutral	HK$195.07M	1.98		―	41.43%	―

Global Sweeteners Holdings Limited Corporate Events

Global Corn Group Limited Announces Rebranding and Strategic Shift

Global Corn Group Limited has announced a series of changes including a new company name, logo, stock short name, and website address. These changes, effective in June 2025, signify a strategic rebranding effort aimed at aligning the company’s identity with its core business in the corn industry. The changes will not impact the company’s operations, shareholder rights, or financial position.

Global Sweeteners Announces Call Option Agreement on Convertible Bonds

Global Sweeteners Holdings Limited has announced a call option agreement involving its substantial shareholders and Mr. Ko Kin Hang, granting call options over the company’s Second Batch Convertible Bonds worth RMB27.0 million. This strategic move allows Mr. Ko to convert these bonds into shares, potentially impacting the company’s equity structure and market positioning.

Global Sweeteners Holdings Secures Shareholder Approval for Key Resolutions

Global Sweeteners Holdings Limited announced that all resolutions proposed at its Annual General Meeting were successfully passed by a significant majority. This includes the approval of financial statements, re-election of directors, and granting of mandates for share transactions, indicating strong shareholder support and stability in the company’s governance and operational strategies.