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China Saftower International Holding Group Limited (HK:8623)
:8623
Hong Kong Market
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China Saftower International Holding Group Limited (8623) AI Stock Analysis

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HK:8623

China Saftower International Holding Group Limited

(8623)

Rating:39Underperform
Price Target:
HK$0.00
▼(-100.00% Downside)
The overall stock score is heavily impacted by the company's poor financial performance, characterized by declining revenues, negative profit margins, and high leverage. Technical analysis indicates weak market sentiment, and valuation metrics are unfavorable due to negative earnings. These factors collectively result in a low overall stock score.

China Saftower International Holding Group Limited (8623) vs. iShares MSCI Hong Kong ETF (EWH)

China Saftower International Holding Group Limited Business Overview & Revenue Model

Company DescriptionChina Saftower International Holding Group Limited manufactures and sells wires and cables in the People's Republic of China. The company offers copper and aluminium wires and cables for electrical equipment, steel reinforced aluminium bare cables, bare copper wires, and aluminium rods. It also engages in trading aluminum products, such as aluminum strips and ingots; and selling cable accessories. The company serves power companies, manufacturing enterprises, construction and renovation companies, and trading companies, as well as walk-in customers. China Saftower International Holding Group Limited was founded in 2004 and is headquartered in Chengdu, China. China Saftower International Holding Group Limited operates as a subsidiary of Red Fly Investments Limited.
How the Company Makes MoneyChina Saftower generates revenue through several key streams, including the sale of construction materials and equipment, project management services, and consultancy fees associated with construction projects. The company leverages its expertise in the construction sector to secure contracts for both public and private sector projects, which are often long-term in nature. Additionally, strategic partnerships with local contractors and suppliers enhance its market presence and enable it to offer competitive pricing. The company's focus on innovation and sustainable practices also attracts clients looking for environmentally friendly solutions, potentially leading to increased sales and profitability.

China Saftower International Holding Group Limited Financial Statement Overview

Summary
The company is facing significant financial challenges with declining revenues, negative profit margins, high leverage, and negative equity. Despite some operational cash generation, free cash flow remains negative, highlighting liquidity concerns.
Income Statement
32
Negative
The company has experienced a significant decline in revenue from previous years, with a negative revenue growth rate. Gross profit margins are extremely low, and both EBIT and EBITDA margins are negative, indicating operational inefficiencies. The net profit margin is also negative, reflecting ongoing losses.
Balance Sheet
28
Negative
The balance sheet shows a concerning debt-to-equity ratio due to negative stockholders' equity, indicating high financial leverage and risk. The equity ratio is negative, suggesting that liabilities exceed assets, which is a critical financial health issue. Return on equity is not calculable due to negative equity.
Cash Flow
40
Negative
The company has a negative free cash flow, but there is a slight improvement in operating cash flow. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio remains negative, highlighting cash flow challenges.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue256.61M244.69M757.90M544.39M518.16M
Gross Profit1.05M371.00K-15.58M6.06M36.46M
EBITDA-62.41M-37.84M-9.93M-10.40M20.12M
Net Income-58.84M-60.04M-25.63M-26.52M2.79M
Balance Sheet
Total Assets272.80M358.85M392.47M469.81M349.07M
Cash, Cash Equivalents and Short-Term Investments13.46M1.47M703.00K7.87M12.07M
Total Debt85.94M88.61M117.08M170.72M101.69M
Total Liabilities260.33M288.31M256.96M308.72M172.93M
Stockholders Equity-129.00K48.60M111.81M133.29M150.99M
Cash Flow
Free Cash Flow-6.99M-20.83M44.86M-39.73M-20.33M
Operating Cash Flow3.61M20.75M55.94M-28.22M-9.41M
Investing Cash Flow17.17M-10.84M-5.71M-18.90M-10.74M
Financing Cash Flow-20.45M-9.09M-56.33M41.70M30.06M

China Saftower International Holding Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.12
Price Trends
50DMA
0.13
Negative
100DMA
0.13
Negative
200DMA
0.12
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
38.71
Neutral
STOCH
5.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8623, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and below the 200-day MA of 0.12, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.71 is Neutral, neither overbought nor oversold. The STOCH value of 5.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8623.

China Saftower International Holding Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
HK$43.00M4.579.85%-19.86%-38.96%
64
Neutral
$10.73B15.747.63%2.01%2.75%-15.09%
50
Neutral
HK$84.60M15.673.18%5.80%57.89%
44
Neutral
HK$32.40M-2.29%5.07%-87.31%
39
Underperform
HK$19.37M-473.21%65.07%15.41%
€6.76M-6.76%
HK$8.82M
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8623
China Saftower International Holding Group Limited
0.12
0.00
0.00%
DE:SWP
Solartech International Holdings Limited
0.08
-0.02
-20.00%
HK:1750
REM Group (Holdings) Ltd.
0.05
0.03
150.00%
HK:3919
Golden Power Group Holdings Ltd.
1.00
0.20
25.00%
HK:0724
Ruixin International Holdings Ltd.
0.10
0.00
0.00%
HK:8136
IMS Group Holdings Ltd.
0.04
0.00
0.00%
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: Sep 04, 2025