Graphex Group Limited (6128) AI Stock Analysis

• Market Cap: HK$221.21M
• Dividend Yield: N/A
• Average Volume (3M): 4.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -27.07%
• EPS Growth: 47.86%
• Country: HK
• Employees: 221
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.06
• Shares Outstanding: 941,313,350
• 10 Day Avg. Volume: 3,343,760
• 30 Day Avg. Volume: 4,170,160
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -14.25
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: HK$0.22 ▼(-8.33% Downside)

Graphex Group Limited's overall stock score is primarily impacted by its poor financial performance and weak technical indicators. The company's significant financial challenges, including declining revenue and profitability, are the most critical factors. The bearish technical analysis further contributes to the low score. The negative P/E ratio and lack of dividend yield also weigh heavily on the valuation.

Positive Factors

Market Demand

The rising demand for electric vehicles and energy storage solutions supports Graphex's revenue growth, as their graphite products are essential in these industries.

Strategic Partnerships

Strategic partnerships in high-growth sectors secure large volume contracts and long-term supply agreements, enhancing revenue stability and growth potential.

Innovation and R&D

Continued investment in R&D fosters innovation, resulting in proprietary technologies that enhance product performance and open new market opportunities.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, potentially impacting long-term financial stability.

Profitability Challenges

Persistent profitability issues reflect operational inefficiencies and pricing pressures, which could hinder future investment and growth.

Weak Cash Flow

Weak cash flow limits the company's ability to fund operations and invest in growth opportunities, posing a risk to financial health and sustainability.

Graphex Group Limited Business Overview & Revenue Model

Company Description

Graphex Group Limited engages in the development, manufacturing, and marketing of graphene products in the People's Republic of China. The company operates through three segments: Manufacturing and Sale of Graphene Products; Landscape Design; and Catering. It provides natural spherical graphite to produce anodes for Li-ion batteries used in electric vehicles; high purity graphite for use in refractory materials and advanced coatings, and other products; and synthetic graphite. The company also offers landscape architecture services and activities. In addition, it provides catering and interior design and landscape architecture services; and invests in food industry; and focuses on the operation of restaurants. The company was formerly known as Earthasia International Holdings Limited and changed its name to Graphex Group Limited in April 2021. Graphex Group Limited was founded in 1981 and is headquartered in Causeway Bay, Hong Kong.

How the Company Makes Money

Graphex Group generates revenue primarily through the sale of its advanced graphite products, which include natural and synthetic graphite materials used in battery production, lubricants, and other industrial applications. The company has established key partnerships with manufacturers in the electric vehicle and renewable energy sectors, enabling it to secure large volume contracts and long-term supply agreements. Additionally, Graphex benefits from its investment in research and development, leading to the creation of proprietary technologies that enhance product performance and open up new market opportunities. The increasing global demand for electric vehicles and energy storage solutions further contributes to the company's revenue growth.

Graphex Group Limited Financial Statement Overview

Summary

Graphex Group Limited is facing significant financial challenges. The income statement shows declining revenue and profitability, with a negative net profit margin and EBIT margin. The balance sheet reflects poor returns with a negative return on equity, and the cash flow statement indicates weak cash generation. Overall, the company needs to address these issues to improve its financial health.

Income Statement

Graphex Group Limited has experienced a significant decline in revenue, with a negative growth rate of 19.86% in the most recent year. The company is struggling with profitability, as indicated by a negative net profit margin of -59.32% and an EBIT margin of -53.96%. The gross profit margin remains relatively stable at 36.36%, but overall, the income statement reflects financial challenges and declining performance.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.84, indicating manageable leverage. However, the return on equity is negative at -39.75%, reflecting poor profitability. The equity ratio is not provided, but the overall balance sheet suggests financial instability and a need for improved profitability.

Cash Flow

Graphex Group Limited's cash flow statement reveals a challenging situation, with negative operating cash flow and free cash flow. The free cash flow to net income ratio is slightly above 1, indicating some efficiency in converting net income to cash flow, but the overall cash flow position is weak, with a significant decline in operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	170.94M	187.85M	291.93M	341.24M	391.04M	388.85M
Gross Profit	65.73M	68.31M	96.82M	119.96M	148.34M	157.02M
EBITDA	-29.39M	-51.93M	-38.36M	33.65M	-5.39M	16.82M
Net Income	-81.97M	-111.44M	-113.17M	-69.66M	-53.55M	-91.70M
Balance Sheet
Total Assets	891.29M	809.35M	847.34M	894.68M	1.10B	1.10B
Cash, Cash Equivalents and Short-Term Investments	10.66M	15.57M	27.21M	31.50M	39.37M	50.80M
Total Debt	222.02M	240.42M	233.16M	308.80M	530.91M	620.03M
Total Liabilities	511.98M	528.99M	477.70M	524.83M	905.89M	935.71M
Stockholders Equity	379.27M	280.36M	369.69M	380.58M	197.31M	171.52M
Cash Flow
Free Cash Flow	-4.69M	-5.46M	-11.89M	41.56M	-31.15M	-12.06M
Operating Cash Flow	-4.57M	-5.31M	-11.16M	42.38M	-29.40M	3.23M
Investing Cash Flow	7.77M	-6.62M	12.12M	-88.82M	1.33M	-12.23M
Financing Cash Flow	6.17M	397.00K	-4.26M	52.38M	18.59M	-7.35M

Graphex Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.24
• 50DMA: Negative
• 100DMA: Negative
• 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:6128, the sentiment is Neutral. The current price of 0.24 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.30, and above the 200-day MA of 0.24, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 38.30 is Neutral, neither overbought nor oversold. The STOCH value of 37.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6128.

Graphex Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2623	66 Neutral	HK$1.68B	20.24	14.56%	―	-70.82%	5182.22%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2237	44 Neutral	HK$560.00M	-63.64	-1.88%	―	-23.72%	-196.49%
2326	43 Neutral	HK$210.84M	-5.56	-9.31%	―	28.43%	21.74%
6128	38 Underperform	HK$221.21M	-1.09	-23.14%	―	-27.07%	47.86%

Graphex Group Limited Corporate Events

Graphex Group Announces Major Subsidiary Disposal Plan

Graphex Group Limited announced an Option Purchase Agreement involving the potential sale of its wholly-owned subsidiary. The agreement allows an independent third-party purchaser to acquire the option for $500,000, with the possibility of purchasing the subsidiary for $100 million. This transaction is classified as a very substantial disposal under Hong Kong’s Listing Rules, requiring shareholder approval. The company plans to hold an Extraordinary General Meeting (EGM) to seek approval for the transaction, with further details to be provided to shareholders by December 22, 2025.

Graphex Group Considers Major Subsidiary Disposal

Graphex Group Limited has announced its intention to potentially dispose of an indirect wholly-owned subsidiary located in Delaware, USA. This potential disposal, which is still under negotiation and not yet legally binding, could represent a significant shift in the company’s asset portfolio, impacting its operational focus and possibly its market positioning. Stakeholders are advised to remain cautious as the situation develops.

Graphex Group Limited Announces Equipment Purchase for Anhui Project

Graphex Group Limited has announced a discloseable transaction involving the purchase of an intelligent carbon coating processing line for their project in Anhui, PRC. The equipment purchase agreement, valued at approximately RMB42,252,200, was reached after negotiations and will be funded by the company’s internal resources. This acquisition is expected to enhance Graphex’s operational capabilities and strengthen its market position in the advanced materials sector.

Graphex Group Expands into Electric Vehicle Market with Strategic Investment

Graphex Group Limited has announced that its subsidiary, Allied Apex Limited, has acquired an 18% stake in Tronche International New Energy Vehicles Co., Limited, a company engaged in exporting electric vehicles to various global markets. This investment is seen as a strategic move to strengthen Graphex’s position in the electric vehicle sector, particularly with the establishment of a joint venture, Hachi, in China, which will produce a range of electric vehicles. The plant in Xuzhou is expected to begin operations in November 2025, with plans to reach full production capacity by 2028, signaling significant growth potential for Graphex in the electric vehicle industry.