China Hongbao Holdings Limited (8316) AI Stock Analysis

• Market Cap: HK$175.42M
• Dividend Yield: N/A
• Average Volume (3M): 348.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.01
• Revenue Growth: -17.12%
• EPS Growth: -25.58%
• Country: HK
• Employees: 97
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 953,376,000
• 10 Day Avg. Volume: 416,400
• 30 Day Avg. Volume: 348,733
• PEG Ratio: -0.69
• Price to Book (P/B): -11.71
• Price to Sales (P/S): 2.22
• P/FCF Ratio: 6.90
• 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

• Rating: 40 Underperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by persistent losses and high leverage. Technical analysis indicates a bearish trend with weak momentum, while valuation metrics are unattractive due to negative earnings and lack of dividends. These factors collectively result in a low overall stock score.

China Hongbao Holdings Limited Business Overview & Revenue Model

Company Description

China Hongbao Holdings Limited (8316) is a Hong Kong-based investment holding company primarily engaged in the provision of integrated services in the packaging and printing industry. The company operates through various segments, including the manufacture and sale of packaging products, printing services, and related products. Its core offerings include flexible packaging solutions, paper packaging products, and customized printing services, catering to a diverse range of sectors such as food and beverage, pharmaceuticals, and consumer goods.

How the Company Makes Money

China Hongbao Holdings Limited generates revenue primarily through the sale of its packaging and printing products. The company's revenue model is based on the production and distribution of customized packaging solutions, which are tailored to meet the specific requirements of its clients. Key revenue streams include direct sales of packaging materials, printing services, and the provision of ancillary services such as design and logistics support. Additionally, the company may benefit from long-term contracts and partnerships with major clients in various industries, which provide a steady source of recurring revenue. Factors contributing to its earnings include its ability to innovate and adapt to market trends, operational efficiencies in production, and strategic alliances that enhance its market presence.

China Hongbao Holdings Limited Financial Statement Overview

Summary

China Hongbao Holdings Limited faces significant financial challenges, with persistent losses and high leverage. While there are improvements in gross profit margin and cash flow, the negative equity and profitability metrics indicate a need for strategic changes to achieve financial stability and growth.

Income Statement

The company shows a slight revenue growth of 3.9% in the latest year, but profitability remains a concern with negative net profit and EBIT margins. The gross profit margin improved to 28.47%, indicating better cost management. However, consistent net losses and negative EBIT and EBITDA margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -1.19. Despite a high return on equity of 63.57%, the negative equity and high leverage pose significant financial risks. The equity ratio is negative, indicating more liabilities than assets.

Cash Flow

The company has improved its cash flow position with positive operating and free cash flows in the latest year. However, the free cash flow growth rate is negative, and the operating cash flow to net income ratio is low at 0.35, suggesting cash flow generation is still weak relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.82M	80.85M	97.56M	101.39M	76.89M	104.60M
Gross Profit	12.22M	23.02M	21.00M	14.85M	2.98M	-15.81M
EBITDA	-18.25M	-5.36M	-712.00K	-15.12M	-7.32M	-22.66M
Net Income	-12.96M	-9.75M	-7.48M	-19.04M	-10.42M	-29.45M
Balance Sheet
Total Assets	21.62M	58.85M	23.37M	105.72M	64.19M	24.11M
Cash, Cash Equivalents and Short-Term Investments	3.46M	36.77M	1.23M	20.57M	2.21M	1.19M
Total Debt	34.54M	18.26M	35.54M	41.93M	39.12M	37.77M
Total Liabilities	52.38M	74.19M	54.52M	163.21M	116.03M	68.25M
Stockholders Equity	-30.76M	-15.33M	-31.15M	-57.49M	-51.84M	-44.14M
Cash Flow
Free Cash Flow	-18.29M	26.04M	-21.75M	-17.10M	-26.31M	-16.25M
Operating Cash Flow	-18.31M	26.05M	-21.45M	-11.23M	-26.31M	-16.23M
Investing Cash Flow	89.00K	66.00K	-299.00K	-5.47M	5.57M	2.52M
Financing Cash Flow	18.07M	9.73M	1.66M	35.66M	21.75M	343.00K

China Hongbao Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 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:8316, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.19, and below the 200-day MA of 0.22, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.94 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8316.

China Hongbao Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1420	80 Outperform	HK$189.51M	3.97	8.41%	―	19.15%	106.56%
2017	70 Neutral	HK$154.63M	5.22	2.78%	―	-8.97%	-12.59%
Sector *	58 Neutral	HK$13.20B	4.28	-2.92%	5.87%	3.05%	-53.41%
1870	54 Neutral	HK$213.67M	32.11	4.17%	―	4.28%	-77.88%
1459	54 Neutral	HK$210.68M	38.73	0.31%	5.06%	-20.04%	-58.20%
1757	53 Neutral	HK$122.40M	113.33	1.19%	―	-34.92%	―
8316	40 Underperform	HK$175.42M	―		―	-17.12%	-25.58%