GHW International (9933) AI Stock Analysis

• Market Cap: HK$1.74B
• Dividend Yield: N/A
• Average Volume (3M): 337.60K
• Price to Earnings (P/E): 96.6
• Beta (1Y): 1.27
• Revenue Growth: 11.08%
• EPS Growth: 147.89%
• Country: HK
• Employees: 1,120
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): <0.01
• Shares Outstanding: 1,009,500,000
• 10 Day Avg. Volume: 350,800
• 30 Day Avg. Volume: 337,600
• PEG Ratio: 0.48
• Price to Book (P/B): 4.01
• Price to Sales (P/S): 0.61
• P/FCF Ratio: -37.06
• 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: 47 Neutral
• Price Target: HK$2.00 ▲(14.29% Upside)

GHW International's overall stock score is primarily impacted by its financial performance and technical analysis. The high leverage and weak cash flow management are major risks, while the technical indicators suggest bearish momentum. The high P/E ratio indicates potential overvaluation, further affecting the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Operational Efficiency

Improved operational efficiency through better cost management enhances profitability, providing a competitive edge and financial resilience.

Strategic Partnerships

Strategic partnerships enhance service offerings and cost efficiency, strengthening market position and supporting sustainable growth.

Negative Factors

High Leverage

High leverage can increase financial risk, especially in adverse conditions, potentially impacting long-term financial stability.

Weak Cash Flow

Weak cash flow limits financial flexibility and may hinder the company's ability to invest in growth opportunities or weather economic downturns.

Low Net Profit Margin

A low net profit margin indicates challenges in converting revenue into profit, which can affect long-term profitability and shareholder value.

GHW International Business Overview & Revenue Model

Company Description

GHW International, an investment holding company, manufactures and sells chemical and pharmaceutical products in the People's Republic of China, Europe, Vietnam, rest of Asia, and internationally. It operates through four segments: Polyurethane Materials, Animal Nutrition Chemicals, Fine Chemicals, and Pharmaceutical Products and Intermediates. The Polyurethane Materials segment offers polymeric methylene diphenyl diisocyanate and toluene diisocyanate, and polymer polyether for use in cushion foams, interior components, and other lightweight automotive parts. The Animal Nutrition Chemicals segment provides choline chloride and betaine used in feeds for poultry and livestock. The Fine Chemicals segment offers carboxylic acids, solvents, resins, and oleochemicals used in the paint and synthesis of dyes, production of lubricants, emulsifiers, cosmetics, flavors and fragrances, and feed additives. The Pharmaceutical Products and Intermediates segment produces and sells isooctanoic acid and diethyl sulfate for use in paint drier, fungicide, preservative and pharmaceutical raw materials, synthesis of dyes, pesticides, and pharmaceutical intermediates; and iodine and iodine derivatives, and pharmaceutical products, such as cefpodoxime dispersible tablets. GHW International was founded in 1995 and is headquartered in Nanjing, the People's Republic of China.

How the Company Makes Money

GHW International generates revenue through multiple key streams. Primarily, the company earns income from its logistics services, which include freight forwarding, transportation management, and warehousing solutions. These services are charged based on volume and distance, providing scalable revenue opportunities. Additionally, GHW International has established strategic partnerships with major shipping lines and transportation networks, allowing for cost-effective service delivery and enhanced service offerings. The company also benefits from value-added services, such as customs brokerage and supply chain consulting, which provide additional revenue. Seasonal demand fluctuations, particularly in the retail sector, can significantly impact earnings, making effective inventory and logistics management crucial to maximizing profitability.

GHW International Financial Statement Overview

Summary

GHW International shows revenue growth and improved operational efficiency, but significant leverage and weak cash flow management are concerning. The company needs to enhance profitability and cash flow stability.

Income Statement

GHW International's revenue has shown a steady growth trajectory, with a notable increase from 2023 to 2024. Gross profit margin improved slightly to 10.12% in 2024, indicating better cost management. However, the net profit margin remains low at 0.33%, affected by high operating costs. EBIT and EBITDA margins also show improvement, reflecting operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage, which could pose risks in adverse conditions. Return on equity has improved but remains modest at 2.18% in 2024. The equity ratio, at 28.62%, suggests a balanced but cautious financial structure with room for strengthening the equity base.

Cash Flow

GHW International's cash flow position is weak, with zero reported free cash flow in 2024, indicating potential liquidity challenges. The lack of positive operating cash flow growth and free cash flow to net income ratio suggests potential inefficiencies in cash generation and usage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.93B	3.86B	3.22B	3.38B	2.83B	2.10B
Gross Profit	366.99M	391.02M	336.98M	657.90M	476.12M	273.27M
EBITDA	-7.59M	39.42M	17.34M	329.44M	176.11M	31.84M
Net Income	15.34M	12.75M	2.72M	274.63M	130.71M	-5.17M
Balance Sheet
Total Assets	2.09B	2.05B	1.74B	1.68B	1.37B	1.02B
Cash, Cash Equivalents and Short-Term Investments	155.54M	101.73M	77.84M	103.30M	58.02M	62.56M
Total Debt	937.06M	862.35M	718.32M	663.43M	700.00M	572.24M
Total Liabilities	1.46B	1.42B	1.16B	1.08B	1.03B	816.25M
Stockholders Equity	595.70M	585.78M	581.42M	602.62M	339.08M	205.50M
Cash Flow
Free Cash Flow	-35.59M	-63.40M	-19.81M	-40.29M	-337.51M	-213.31M
Operating Cash Flow	21.11M	61.04M	120.07M	234.08M	-122.53M	-125.22M
Investing Cash Flow	-86.15M	-158.51M	-140.43M	-197.72M	-164.18M	-150.75M
Financing Cash Flow	72.88M	126.98M	-4.97M	9.07M	284.99M	303.34M

GHW International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.75
• 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:9933, the sentiment is Negative. The current price of 1.75 is above the 20-day moving average (MA) of 1.72, below the 50-day MA of 1.77, and above the 200-day MA of 1.74, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.08 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9933.

GHW International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0609	61 Neutral	HK$1.32B	20.44	2.46%	3.52%	-5.29%	-32.47%
1702	59 Neutral	HK$1.18B	16.45	3.61%	2.20%	-8.51%	-68.34%
2198	56 Neutral	HK$4.35B	5.87	13.87%	―	9.20%	213.87%
9933	47 Neutral	HK$1.74B	96.59	2.59%	―	11.08%	147.89%
0827	43 Neutral	HK$217.87M	-0.31	-112.79%	―	-22.72%	-212.73%