Hyfusin Group Holdings Ltd. (8512) AI Stock Analysis

• Market Cap: HK$321.47M
• Dividend Yield: N/A
• Average Volume (3M): 484.00K
• Price to Earnings (P/E): 2.6
• Beta (1Y): 0.51
• Revenue Growth: -3.12%
• EPS Growth: 1.92%
• Country: HK
• Employees: 1,500
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.05
• Shares Outstanding: 918,500,000
• 10 Day Avg. Volume: 894,000
• 30 Day Avg. Volume: 484,000
• PEG Ratio: 0.01
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 6.47
• 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: 73 Outperform
• Price Target: HK$0.37 ▲(10.00% Upside)

Hyfusin Group Holdings Ltd. has a solid financial performance with strong revenue and profit growth, although cash flow stability needs improvement. The stock appears undervalued with a low P/E ratio, offering potential upside. However, technical indicators suggest caution due to overbought conditions, which may lead to short-term volatility.

Positive Factors

Strong Profit Margins

The improvement in net profit margin indicates enhanced profitability, suggesting effective cost management and pricing strategies that can sustain long-term financial health.

Low Leverage

Minimal leverage reduces financial risk and enhances the company's ability to invest in growth opportunities without the burden of high-interest costs, supporting long-term stability.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and adapt to industry demands, which is crucial for sustaining long-term business success.

Negative Factors

Cash Flow Challenges

Zero operating cash flow indicates potential liquidity issues, which could hinder the company's ability to fund operations and growth initiatives, affecting long-term financial health.

Revenue Decline

A decline in revenue growth can signal weakening demand or competitive pressures, which may impact the company's market position and profitability over time.

Cash Flow Stability

Inconsistent cash flow generation can limit the company's ability to invest in new projects and respond to market changes, posing a risk to long-term growth and operational flexibility.

Hyfusin Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Hyfusin Group Holdings Limited, an investment holding company, designs, manufactures, and sells candle products in the United States, the United Kingdom, and internationally. The company provides daily-use candles, scented candles, and decorative candles, as well as other products, including diffusers. It primarily serves department store operators and buying agents. The company was incorporated in 2017 and is headquartered in Aberdeen, Hong Kong. Hyfusin Group Holdings Limited is a subsidiary of AVW International Limited.

How the Company Makes Money

Hyfusin Group Holdings Ltd. generates revenue through multiple streams, primarily by manufacturing and selling electronic components to various industries. The company’s revenue model is built on the production of high-quality products that meet the demands of telecommunications and consumer electronics markets, thus attracting both bulk and retail buyers. Key revenue streams include direct sales to manufacturers, distribution partnerships, and contracts with major retail chains. Additionally, Hyfusin may benefit from strategic partnerships with technology firms and suppliers, which enhance its market reach and facilitate access to advanced technologies, further contributing to its earnings.

Hyfusin Group Holdings Ltd. Financial Statement Overview

Summary

Hyfusin Group Holdings Ltd. demonstrates strong revenue and profit growth, supported by efficient operations and effective capital management. The balance sheet is robust with low leverage, while cash flow stability presents a challenge, requiring attention to ensure continued financial health.

Income Statement

Hyfusin Group Holdings Ltd. has shown consistent growth in revenue, with a solid revenue growth rate of 5% from 2023 to 2024. The Gross Profit Margin is robust at 38.7% in 2024, reflecting efficient cost management. Net Profit Margin improved significantly to 18.9% in 2024, indicating enhanced profitability. EBIT and EBITDA margins also demonstrate strong profitability levels, at 18.1% and 18.3% respectively. The company shows strong top-line growth and improving profitability.

Balance Sheet

The balance sheet of Hyfusin Group Holdings Ltd. indicates a healthy financial position, with a low Debt-to-Equity Ratio of 0.03 in 2024, suggesting minimal leverage and financial risk. Return on Equity is strong at 26.5%, highlighting effective use of equity capital. The Equity Ratio is high at 81.2%, underscoring a solid capital structure with substantial equity financing.

Cash Flow

Cash flow analysis shows challenges in operating cash flow generation in 2024, as it stands at zero, contrasting with strong operating cash flows in previous years. The Free Cash Flow Growth Rate is not calculable for 2024 due to zero values. Despite these issues, the Free Cash Flow to Net Income Ratio was strong in prior periods, but stability in cash flow generation needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	873.05M	909.45M	866.25M	684.95M	815.14M	555.91M
Gross Profit	297.82M	351.90M	335.54M	207.69M	269.92M	206.60M
EBITDA	139.30M	166.54M	154.19M	102.79M	138.44M	117.40M
Net Income	122.03M	171.43M	102.29M	73.06M	106.21M	90.48M
Balance Sheet
Total Assets	858.28M	796.79M	686.92M	501.32M	482.98M	353.74M
Cash, Cash Equivalents and Short-Term Investments	349.57M	324.51M	336.77M	171.35M	138.35M	108.39M
Total Debt	39.28M	16.43M	18.36M	53.96M	65.94M	32.13M
Total Liabilities	166.15M	149.81M	181.35M	98.06M	152.53M	129.48M
Stockholders Equity	692.13M	646.97M	505.57M	403.26M	330.46M	224.26M
Cash Flow
Free Cash Flow	150.09M	36.15M	213.65M	59.28M	19.21M	103.75M
Operating Cash Flow	214.93M	101.12M	248.56M	96.61M	73.30M	111.75M
Investing Cash Flow	-69.53M	-51.35M	-31.15M	-39.03M	-60.12M	-9.27M
Financing Cash Flow	-4.12M	-62.03M	-51.99M	-24.57M	16.24M	-24.13M

Hyfusin Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8512, the sentiment is Positive. The current price of 0.34 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.30, and above the 200-day MA of 0.30, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 78.76 is Negative, neither overbought nor oversold. The STOCH value of 82.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8512.

Hyfusin Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1925	74 Outperform	HK$502.25M	5.14	17.17%	7.56%	21.99%	11.36%
8512	73 Outperform	HK$321.47M	2.63	19.34%	―	-3.12%	1.92%
1455	70 Outperform	HK$282.56M	6.78	5.51%	6.64%	-34.28%	-45.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1962	60 Neutral	HK$295.66M	9.85	3.77%	10.32%	-6.67%	-29.55%
1338	56 Neutral	HK$120.17M	42.22	1.83%	―	5.99%	-74.29%
6893	49 Neutral	HK$283.87M	―	-23.55%	―	10.42%	11.14%