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Graphex Group Limited (HK:6128)
:6128
Hong Kong Market

Graphex Group Limited (6128) AI Stock Analysis

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HK:6128

Graphex Group Limited

(6128)

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Underperform 38 (OpenAI - 5.2)
Rating:38Underperform
Price Target:
HK$0.26
▲(25.24% Upside)
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
Manageable leverage
A debt-to-equity of ~0.84 suggests leverage is not excessive, giving the company structural breathing room to fund operations or restructure without immediate solvency pressure. Manageable leverage supports longer-term flexibility in financing and operational planning.
Stable gross margin
A consistent ~36% gross margin implies the core manufacturing or product economics retain pricing power or cost control. This durable margin base can underpin recovery as fixed costs are absorbed and enables improvement in operating profit if volumes or SG&A efficiency recover.
Decent cash conversion metric
A FCF-to-net-income ratio above 1 indicates the company has some structural ability to convert accounting profits into cash, suggesting pockets of operational efficiency or working capital management that can be scaled. This supports medium-term liquidity if sustained.
Negative Factors
Declining revenue
Material revenue decline undermines scale economics and signals weakening demand or lost market share. Over several quarters this erodes the ability to cover fixed costs, limits reinvestment capacity, and makes margin recovery and structural turnaround more difficult.
Severe profitability shortfall
Deep negative margins and sharply negative ROE reflect persistent losses and destruction of shareholder value. This structural profitability gap constrains internal funding for growth, raises likelihood of recapitalization, and indicates fundamental issues in pricing, costs, or product mix.
Weak operating cash flow
Sustained negative operating cash flow signals that core operations do not generate sufficient cash to fund activities. Over months this forces reliance on external financing or asset sales, increasing refinancing and dilution risk and limiting ability to invest in recovery initiatives.

Graphex Group Limited (6128) vs. iShares MSCI Hong Kong ETF (EWH)

Graphex Group Limited Business Overview & Revenue Model

Company DescriptionGraphex 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 MoneyGraphex 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 of -59.32%. The balance sheet reflects poor returns with a negative return on equity of -39.75%, and the cash flow statement indicates weak cash generation with negative operating cash flow. Overall, the financial health is concerning.
Income Statement
35
Negative
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
40
Negative
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
30
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue170.94M187.85M291.93M341.24M391.04M388.85M
Gross Profit65.73M68.31M96.82M119.96M148.34M157.02M
EBITDA-29.39M-51.93M-38.36M33.65M-5.39M16.82M
Net Income-81.97M-111.44M-113.17M-69.66M-53.55M-91.70M
Balance Sheet
Total Assets891.29M809.35M847.34M894.68M1.10B1.10B
Cash, Cash Equivalents and Short-Term Investments10.66M15.57M27.21M31.50M39.37M50.80M
Total Debt222.02M240.42M233.16M308.80M530.91M620.03M
Total Liabilities511.98M528.99M477.70M524.83M905.89M935.71M
Stockholders Equity379.27M280.36M369.69M380.58M197.31M171.52M
Cash Flow
Free Cash Flow-4.69M-5.46M-11.89M41.56M-31.15M-12.06M
Operating Cash Flow-4.57M-5.31M-11.16M42.38M-29.40M3.23M
Investing Cash Flow7.77M-6.62M12.12M-88.82M1.33M-12.23M
Financing Cash Flow6.17M397.00K-4.26M52.38M18.59M-7.35M

Graphex Group Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.21
Price Trends
50DMA
0.27
Negative
100DMA
0.28
Negative
200DMA
0.24
Positive
Market Momentum
MACD
<0.01
Negative
RSI
50.18
Neutral
STOCH
50.61
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 0.21 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.27, and below the 200-day MA of 0.24, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.18 is Neutral, neither overbought nor oversold. The STOCH value of 50.61 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
HK$1.58B19.0214.56%-70.82%5182.22%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
44
Neutral
HK$544.00M-61.82-1.88%-23.72%-196.49%
44
Neutral
HK$231.92M-6.11-9.31%28.43%21.74%
38
Underperform
HK$249.45M-1.23-23.14%-27.07%47.86%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6128
Graphex Group Limited
0.27
0.14
110.32%
DE:AIHA
Greentech Technology International Limited
DE:06GN
China Kingstone Mining Holdings Ltd
0.01
0.00
0.00%
HK:2237
China Graphite Group Ltd.
0.34
-0.07
-16.05%
HK:2326
New Provenance Everlasting Holdings Limited
0.01
<0.01
10.00%
HK:2623
Add New Energy Investment Holdings Group Ltd.
4.52
3.93
666.10%

Graphex Group Limited Corporate Events

Graphex Group Calls EGM to Approve Option for US$100 Million Disposal
Jan 29, 2026

Graphex Group Limited has called an extraordinary general meeting (EGM) in Hong Kong on 20 March 2026 for shareholders to vote on a proposed disposal of its interest in Graphex Technologies LLC. The meeting will seek approval of an Option Purchase Agreement under which M2i Global, Inc. may acquire 100% of the units in Graphex Technologies for a total consideration of US$100 million, and grant the board an 18‑month mandate to enter into and complete a definitive disposal agreement if the option becomes unconditional and is exercised. The resolutions, if passed, would give the board substantial flexibility to proceed with a major transaction that could significantly reshape the group’s asset portfolio and capital structure, with implications for its strategic direction and shareholder value.

The most recent analyst rating on (HK:6128) stock is a Sell with a HK$0.26 price target. To see the full list of analyst forecasts on Graphex Group Limited stock, see the HK:6128 Stock Forecast page.

Graphex Group Mourns Director’s Passing and Moves to Restore HKEX Compliance
Jan 14, 2026

Graphex Group Limited has announced the passing of independent non-executive director Ms. Tam Ip Fong Sin, who also chaired the nomination and remuneration committees and sat on the audit committee, after serving the board since 2014, with the board expressing gratitude for her contributions and condolences to her family. Following her death, the company has appointed independent non-executive director Mr. Liu Kwong Sang as chairman of the nomination and remuneration committees, but now falls temporarily out of compliance with Hong Kong listing rules on the minimum number of independent non-executive directors, the size of the audit committee and board gender diversity; the company intends to appoint new independent non-executive directors within three months to restore compliance and says normal operations are not affected.

The most recent analyst rating on (HK:6128) stock is a Sell with a HK$0.22 price target. To see the full list of analyst forecasts on Graphex Group Limited stock, see the HK:6128 Stock Forecast page.

Graphex Group Details Board and Committee Structure to Strengthen Governance
Jan 14, 2026

Graphex Group Limited has disclosed the current composition of its board of directors, comprising three executive directors, one non-executive director and two independent non-executive directors, reflecting its governance structure as a listed electric-vehicle new-materials company. The board has also confirmed the membership and leadership of its three standing committees—Audit, Nomination and Remuneration—placing independent non-executive director Liu Kwong Sang as chairman of all three and fellow independent director Wang Yuncai as a member of each, underscoring an emphasis on independent oversight and formalized corporate governance in key board functions.

The most recent analyst rating on (HK:6128) stock is a Sell with a HK$0.22 price target. To see the full list of analyst forecasts on Graphex Group Limited stock, see the HK:6128 Stock Forecast page.

Graphex Clarifies Terms of Option Deal and Delays Shareholder Circular
Dec 22, 2025

Graphex Group Limited has issued a clarification to correct a clerical error in a previous announcement regarding the closing conditions for its option purchase agreement tied to a possible very substantial disposal of an indirect wholly owned subsidiary. The corrected clause states that closing will occur within one month of signing the definitive agreement, on the condition that the purchaser’s shares either remain quoted on the OTCQB market or are listed on a U.S. national stock exchange, broadening the acceptable trading venues for the purchaser’s stock. The company also disclosed that dispatch of a shareholder circular containing further details of the transaction, the related mandate and the extraordinary general meeting notice will be delayed from the previously indicated date of 22 December 2025 to on or before 16 January 2026, as more time is needed to finalize the information required under listing rules.

The most recent analyst rating on (HK:6128) stock is a Sell with a HK$0.22 price target. To see the full list of analyst forecasts on Graphex Group Limited stock, see the HK:6128 Stock Forecast page.

Graphex Group Announces Major Subsidiary Disposal Plan
Dec 1, 2025

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.

The most recent analyst rating on (HK:6128) stock is a Hold with a HK$0.36 price target. To see the full list of analyst forecasts on Graphex Group Limited stock, see the HK:6128 Stock Forecast page.

Graphex Group Considers Major Subsidiary Disposal
Nov 20, 2025

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.

The most recent analyst rating on (HK:6128) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Graphex Group Limited stock, see the HK:6128 Stock Forecast page.

Graphex Group Limited Announces Equipment Purchase for Anhui Project
Nov 11, 2025

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.

The most recent analyst rating on (HK:6128) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Graphex Group Limited stock, see the HK:6128 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 09, 2025