China Golden Classic Group Ltd. (8281) AI Stock Analysis

• Market Cap: HK$110.00M
• Dividend Yield: 4.06%
• Average Volume (3M): 24.00K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.09
• Revenue Growth: -1.65%
• EPS Growth: 230.00%
• Country: HK
• Employees: 272
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): N/A
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 52,000
• 30 Day Avg. Volume: 24,000
• PEG Ratio: -0.60
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 38.31
• 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: 50 Neutral
• Price Target: HK$0.10 ▲(3.00% Upside)

The overall stock score is primarily influenced by weak financial performance and bearish technical indicators. While the valuation offers some appeal with a reasonable P/E ratio and a decent dividend yield, it is not enough to outweigh the concerns about declining revenues, profit margins, and cash flow issues.

Positive Factors

Market Presence

Strategic partnerships bolster market presence, enabling wider distribution and brand recognition, which can drive long-term growth.

Product Innovation

Focus on innovation ensures the company remains competitive, meeting evolving consumer demands and sustaining long-term relevance.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability, providing the company with flexibility to invest in growth opportunities.

Negative Factors

Revenue Decline

Consistent revenue decline indicates challenges in market demand or competition, impacting long-term profitability and growth.

Cash Flow Issues

Weak cash flow generation limits the company's ability to reinvest in business operations, affecting future growth and financial stability.

Profit Margin Volatility

Volatile profit margins reflect operational inefficiencies and market pressures, posing risks to sustained profitability and investor confidence.

China Golden Classic Group Ltd. Business Overview & Revenue Model

Company Description

China Golden Classic Group Ltd. is a Hong Kong-based company primarily engaged in the manufacturing and distribution of consumer products, particularly focusing on health and wellness items. The company operates in various sectors, including food and beverage, personal care, and household products, aiming to provide high-quality goods that meet the diverse needs of consumers in both domestic and international markets.

How the Company Makes Money

The company generates revenue through multiple channels, primarily by selling its products directly to retailers and wholesalers. Key revenue streams include the sale of health supplements, functional foods, and personal care items. Additionally, China Golden Classic Group Ltd. may engage in e-commerce platforms to reach a broader customer base. Strategic partnerships with suppliers and retailers enhance its market presence, while an emphasis on quality and innovation in product development helps to attract and retain customers, contributing significantly to its earnings.

China Golden Classic Group Ltd. Financial Statement Overview

Summary

China Golden Classic Group Ltd. faces challenges across several financial metrics. Declining revenues and profit margins, coupled with volatile cash flows, raise concerns about the company's operational performance and financial stability. The balance sheet remains relatively strong, but the company needs to address profitability and cash generation issues to improve its financial health.

Income Statement

The company has experienced declining revenue over the recent years, with a revenue drop from 2020 to 2024. Gross profit margin has also decreased from 2020 to 2024, reflecting reduced operational efficiency. Net profit margin has been volatile, with a significant decline in 2024 driven by a negative EBIT. Overall, profitability has been inconsistent, indicating challenges in maintaining stable revenue and profit margins.

Balance Sheet

The balance sheet shows a stable but slightly declining stockholders' equity over the years. The debt-to-equity ratio remains low, indicating a conservative leverage position. However, the equity ratio has decreased slightly. Overall, the company maintains a solid balance sheet, though asset efficiency and equity growth could be improved.

Cash Flow

Cash flow performance is weak, with negative free cash flow in 2024. Operating cash flow has shown inconsistency, and the free cash flow to net income ratio is concerning, particularly with zero free cash flow in 2024. The company's ability to generate cash from operations is impaired, posing a risk to financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	269.91M	261.30M	292.01M	270.54M	295.70M	305.79M
Gross Profit	92.56M	89.49M	109.56M	101.61M	115.69M	132.26M
EBITDA	22.11M	18.39M	30.31M	27.67M	32.54M	42.90M
Net Income	6.04M	2.97M	7.06M	12.15M	12.85M	18.16M
Balance Sheet
Total Assets	300.75M	335.11M	348.56M	364.15M	353.01M	359.12M
Cash, Cash Equivalents and Short-Term Investments	70.86M	83.56M	79.01M	77.44M	73.29M	85.60M
Total Debt	2.75M	8.81M	6.42M	18.27M	15.00M	20.02M
Total Liabilities	41.62M	72.80M	84.88M	103.95M	105.00M	123.60M
Stockholders Equity	259.14M	262.32M	263.68M	260.20M	248.01M	235.52M
Cash Flow
Free Cash Flow	11.26M	2.67M	15.23M	13.27M	-9.74M	30.64M
Operating Cash Flow	18.02M	9.10M	29.82M	28.16M	10.28M	44.68M
Investing Cash Flow	-2.05M	358.00K	-8.73M	-7.93M	-11.83M	-8.53M
Financing Cash Flow	-6.77M	-4.96M	-16.11M	-463.00K	-4.46M	-42.25M

China Golden Classic Group Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8281, the sentiment is Negative. The current price of 0.1 is below the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.11, and above the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 21.74 is Positive, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8281.

China Golden Classic Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8451	62 Neutral	HK$44.80M	18.67	2.26%	―	-4.33%	-54.55%
8436	55 Neutral	HK$90.80M	19.74	1.89%	―	-20.10%	-74.16%
8281	50 Neutral	HK$110.00M	16.67	2.37%	4.06%	-1.65%	230.00%
8200	45 Neutral	HK$41.00M	38.24	0.15%	―	1.01%	―
8176	40 Neutral	HK$53.66M	-6.20	―	―	96.55%	65.53%
1173	40 Underperform	HK$83.09M	―	-117.03%	―	-17.91%	-32.66%