China Saftower International Holding Group Limited (8623) AI Stock Analysis

• Market Cap: HK$34.25M
• Dividend Yield: N/A
• Average Volume (3M): 234.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 65.07%
• EPS Growth: 15.41%
• Country: HK
• Employees: 111
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.13
• Shares Outstanding: 187,175,250
• 10 Day Avg. Volume: 32,200
• 30 Day Avg. Volume: 234,040
• PEG Ratio: 0.02
• Price to Book (P/B): -86.44
• Price to Sales (P/S): 0.04
• P/FCF Ratio: -1.60
• 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: 46 Neutral
• Price Target: HK$0.18 ▲(37.69% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, negative margins, and high financial risk. While technical analysis shows some bullish momentum, overbought conditions and negative valuation metrics limit the stock's appeal.

Positive Factors

Revenue Growth

Despite financial challenges, the company has demonstrated strong revenue growth, indicating potential market demand and business expansion opportunities.

Market Position

The company's focus on renewable energy and energy efficiency positions it well in growing sectors, potentially driving long-term demand for its products.

Cash Generation Ability

The ability to generate cash from operations despite net losses suggests operational resilience and potential for financial recovery.

Negative Factors

Negative Margins

Negative margins indicate operational inefficiencies and ongoing losses, which could hinder profitability and long-term sustainability.

High Financial Leverage

High financial leverage and negative equity suggest significant financial risk, potentially limiting the company's ability to invest in growth.

Liquidity Concerns

Liquidity issues could restrict the company's operational flexibility and ability to meet short-term obligations, impacting long-term viability.

China Saftower International Holding Group Limited Business Overview & Revenue Model

Company Description

China Saftower International Holding Group Limited (8623) is a diversified investment holding company primarily engaged in the manufacture and sale of electric power transmission and distribution equipment. The company operates in several sectors including renewable energy, power generation, and energy efficiency solutions, focusing on providing advanced technology and high-quality products to meet the growing demand for sustainable energy solutions. Its core offerings include a range of power equipment and solutions that support infrastructure development and energy management.

How the Company Makes Money

China Saftower International Holding Group Limited generates revenue through the sale of its electric power transmission and distribution equipment, as well as through providing related services such as installation, maintenance, and consultancy. Key revenue streams include direct sales to utility companies, government contracts for infrastructure projects, and partnerships with private sector firms involved in energy projects. The company may also benefit from government incentives for renewable energy projects, contributing to its earnings. Furthermore, strategic alliances with industry partners can enhance its market reach and bolster revenues through collaborative projects.

China Saftower International Holding Group Limited Financial Statement Overview

Summary

The company is experiencing severe financial difficulties, with declining revenues, negative profit margins, high financial leverage, and negative equity. Cash flow challenges persist despite some operational cash generation.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	335.53M	256.61M	244.69M	757.90M	544.39M	518.16M
Gross Profit	622.00K	1.05M	371.00K	-15.58M	6.06M	36.46M
EBITDA	-62.88M	-62.41M	-37.84M	-9.93M	-10.40M	20.12M
Net Income	-62.60M	-58.84M	-60.04M	-21.54M	-25.22M	1.90M
Balance Sheet
Total Assets	228.22M	272.80M	358.85M	392.47M	469.81M	349.07M
Cash, Cash Equivalents and Short-Term Investments	2.38M	13.46M	1.47M	873.00K	7.87M	12.07M
Total Debt	78.23M	85.94M	88.61M	117.08M	170.72M	104.93M
Total Liabilities	227.53M	260.33M	288.31M	256.96M	308.72M	172.93M
Stockholders Equity	-10.45M	-129.00K	48.60M	111.81M	133.29M	150.99M
Cash Flow
Free Cash Flow	1.30M	-6.99M	-20.83M	44.86M	-39.73M	-20.33M
Operating Cash Flow	-3.95M	3.61M	20.75M	55.94M	-28.22M	-9.41M
Investing Cash Flow	32.92M	17.17M	-10.84M	-5.71M	-18.90M	-10.74M
Financing Cash Flow	2.03M	-20.45M	-9.09M	-56.33M	41.70M	30.06M

China Saftower International Holding Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 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:8623, the sentiment is Positive. The current price of 0.13 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.15, and below the 200-day MA of 0.14, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 76.92 is Negative, neither overbought nor oversold. The STOCH value of 94.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8623.

China Saftower International Holding Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8136	62 Neutral	HK$40.00M	6.67	5.64%	―	-24.77%	-34.07%
1750	55 Neutral	HK$100.80M	18.67	3.18%	―	5.80%	57.89%
1166	54 Neutral	€58.77M	―	-20.57%	―	-27.26%	-60.80%
8623	46 Neutral	HK$34.25M	―	-473.21%	―	65.07%	15.41%
3919	44 Neutral	HK$51.84M	-6.57	-2.29%	―	5.07%	-87.31%