China Aluminum Cans Holdings Ltd. (6898) AI Stock Analysis

• Market Cap: HK$660.83M
• Dividend Yield: 0.59%
• Average Volume (3M): 41.60K
• Price to Earnings (P/E): 41.4
• Beta (1Y): -0.58
• Revenue Growth: -2.08%
• EPS Growth: -23.18%
• Country: HK
• Employees: 269
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.01
• Shares Outstanding: 944,047,000
• 10 Day Avg. Volume: 20,800
• 30 Day Avg. Volume: 41,600
• PEG Ratio: -2.05
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 3.01
• P/FCF Ratio: 22.38
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: HK$1.00 ▲(44.93% Upside)

The overall score is primarily influenced by stable financial performance and a strong balance sheet, but is negatively impacted by technical indicators suggesting bearish momentum and a high valuation. The lack of recent cash flow data and high P/E ratio are significant concerns.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage reduces financial risk and provides flexibility for future investments and growth opportunities.

Stable Profit Margins

Consistent profit margins indicate effective cost management and pricing power, supporting long-term profitability and competitiveness.

Low Financial Leverage

Low financial leverage minimizes interest obligations and financial risk, enhancing the company's ability to withstand economic downturns.

Negative Factors

Revenue Decline

A decline in revenue suggests potential challenges in market demand or competition, which could impact future growth and profitability.

Missing Cash Flow Data

Lack of current cash flow data hinders accurate assessment of liquidity and cash generation, impacting financial planning and stability.

Earnings Decline

A sharp decline in earnings per share reflects reduced profitability, which may affect investor confidence and the company's ability to reinvest in growth.

China Aluminum Cans Holdings Ltd. Business Overview & Revenue Model

Company Description

China Aluminum Cans Holdings Limited, an investment holding company, primarily manufactures and trades in aluminum aerosol cans in Mainland China, Africa, the United States, and rest of Asia. The company offers aluminum aerosol cans for packaging of fast-moving personal care products, such as sanitizer, body deodorants, hair styling products, and shaving creams; and pharmaceutical products, including pain relieving and antiseptic sprays, and spray dressings. The company was incorporated in 2012 and is headquartered in Zhongshan, the People's Republic of China. China Aluminum Cans Holdings Limited is a subsidiary of Wellmass International Limited.

How the Company Makes Money

The company generates revenue primarily through the production and sale of aluminum cans to various beverage manufacturers. Its revenue model is based on bulk orders from clients in the beverage industry, where it supplies cans tailored to specific needs, including different sizes and designs. Key revenue streams include contracts with large beverage brands and partnerships with regional distributors. Additionally, the company may benefit from economies of scale, reducing production costs as demand increases. Factors such as rising consumer preferences for canned beverages and stringent environmental regulations favoring recyclable packaging also contribute to its earnings.

China Aluminum Cans Holdings Ltd. Financial Statement Overview

Summary

The company shows stable profitability with consistent gross and net profit margins despite a slight revenue decline. The balance sheet is strong with low leverage, but cash flow concerns arise due to missing recent data.

Income Statement

The company has maintained a stable gross profit margin and net profit margin in recent years, with a slight decline in revenue over the last year. The gross profit margin has fluctuated around 26-31%, indicating a fairly stable profitability on sales. The net profit margin remained reasonably stable, suggesting efficient cost management. However, revenue declined by 3.27% in 2023, which is a point of concern. EBIT and EBITDA margins are also consistent at around 9-15%, indicating decent operational efficiency.

Balance Sheet

The company has a strong equity position with an increasing equity ratio over time, which is now at 89.47%. The debt-to-equity ratio is extremely low, indicating very low financial leverage and minimal risk from debt obligations. Return on equity has been slightly variable but maintains a decent rate, reflecting a reasonable return on shareholders' investments. The overall balance sheet position is strong, with low liabilities relative to assets.

Cash Flow

The cash flow situation shows some concerns due to recent volatility. Operating cash flow has been positive in prior years, but the absence of reported free cash flow and operating cash flow data in the latest period is a concern. Previously, free cash flow to net income and operating cash flow to net income ratios were strong, indicating efficient cash generation relative to earnings. However, the lack of current data limits a comprehensive analysis.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	225.75M	227.80M	235.51M	210.51M	208.90M	183.92M
Gross Profit	55.52M	60.82M	69.60M	54.46M	56.62M	65.11M
EBITDA	31.95M	41.88M	47.16M	43.47M	41.63M	49.43M
Net Income	16.13M	18.37M	21.46M	20.51M	18.10M	21.67M
Balance Sheet
Total Assets	301.38M	283.02M	343.04M	393.38M	404.90M	395.84M
Cash, Cash Equivalents and Short-Term Investments	61.21M	48.93M	64.91M	112.79M	95.38M	102.52M
Total Debt	195.00K	224.00K	189.00K	513.00K	547.00K	12.35M
Total Liabilities	30.23M	26.07M	26.04M	31.06M	29.14M	42.19M
Stockholders Equity	267.73M	253.19M	95.86M	357.25M	370.65M	349.00M
Cash Flow
Free Cash Flow	19.99M	30.64M	35.18M	24.87M	6.69M	40.25M
Operating Cash Flow	20.21M	35.17M	38.19M	36.88M	29.45M	52.75M
Investing Cash Flow	26.89M	31.13M	-49.19M	-10.13M	-21.07M	-11.96M
Financing Cash Flow	-8.99M	-74.18M	-57.50M	-5.58M	-19.13M	5.25M

China Aluminum Cans Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6898, the sentiment is Negative. The current price of 0.69 is below the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.72, and below the 200-day MA of 0.70, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.65 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6898.

China Aluminum Cans Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6898	58 Neutral	HK$660.83M	41.42	13.20%	0.59%	-2.08%	-23.18%
1626	58 Neutral	HK$1.48B	-134.24	-7.35%	―	-82.87%	-110.99%
1820	46 Neutral	HK$751.58M	-24.49	-5.51%	3.20%	3.51%	-950.83%
8291	45 Neutral	HK$14.13M	3.20	―	―	-44.08%	―
1689	41 Neutral	HK$273.56M	-2.97	-36.51%	―	-0.28%	-70.30%

China Aluminum Cans Holdings Ltd. Corporate Events

China Aluminum Cans Chairman Named Head of ISO Metal Containers Committee

China Aluminum Cans Holdings Limited announced that its chairman, Lin Wan Tsang, has been appointed chairperson of the Light Gauge Metal Containers Technical Committee of the International Organization for Standardization (ISO/TC 52). Lin, who previously chaired the International Organisation of Aluminium Aerosol Container Manufacturers in 2022, has gained further international recognition in the metal packaging industry, and his new ISO role is expected to strengthen the group’s influence in global standard-setting. The company highlighted that this appointment will deepen its participation in international standardization, support closer alignment of China’s metal packaging standards with global norms, and positively underpin the group’s long-term development and industry standing.

The most recent analyst rating on (HK:6898) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China Aluminum Cans Holdings Ltd. stock, see the HK:6898 Stock Forecast page.