GHW International (9933) AI Stock Analysis

• Market Cap: HK$1.57B
• Dividend Yield: N/A
• Average Volume (3M): 654.13K
• Price to Earnings (P/E): 106.1
• Beta (1Y): 1.34
• Revenue Growth: 17.98%
• EPS Growth: 374.19%
• Country: HK
• Employees: 1,120
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals
• EPS (TTM): 0.01
• Shares Outstanding: 1,009,500,000
• 10 Day Avg. Volume: 579,200
• 30 Day Avg. Volume: 654,133
• PEG Ratio: 1.00
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -48.41
• 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: 50 Neutral
• Price Target: HK$1.50 ▼(-3.85%Downside)

The overall stock score for GHW International reflects significant concerns regarding its financial health and valuation. The company's high leverage and weak cash flow management are major risks. Additionally, the stock appears overvalued with a high P/E ratio. These factors outweigh the positive aspects of revenue growth and operational efficiency improvements.

GHW International Business Overview & Revenue Model

Company Description

GHW International (9933) is a diversified chemical company engaged in the production and distribution of a wide range of chemical products. The company operates in several sectors, including chemical manufacturing and distribution, industrial solutions, and specialty chemicals. Its core products include specialty chemicals, polymers, and various industrial solutions designed to meet the needs of diverse industries globally.

How the Company Makes Money

GHW International generates revenue through the production and sale of its chemical products. The company operates a robust supply chain that includes the manufacturing of specialty chemicals and polymers, as well as the distribution of these products to various industrial clients. Key revenue streams include direct sales to industries such as automotive, construction, and consumer goods, where its chemical solutions are utilized in manufacturing processes. Additionally, strategic partnerships and long-term contracts with industrial clients contribute significantly to its earnings, ensuring a steady demand for its products. The company's ability to innovate and customize its chemical solutions to meet client-specific needs further enhances its revenue-generating capabilities.

GHW International Financial Statement Overview

Summary

GHW International shows positive revenue growth and operational efficiency improvements. However, the company's significant leverage and weak cash flow management, particularly zero free cash flow in 2024, highlight financial vulnerabilities.

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

GHW International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.56
• 50DMA: Positive
• 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 Positive. The current price of 1.56 is above the 20-day moving average (MA) of 1.55, above the 50-day MA of 1.53, and below the 200-day MA of 2.42, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.27 is Neutral, neither overbought nor oversold. The STOCH value of 45.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9933.

GHW International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1702	69 Neutral	HK$1.06B	11.51	4.75%	16.62%	-13.75%	-56.14%
Sector *	58 Neutral	HK$16.18B	4.23	-6.43%	9.52%	-3.39%	-61.30%
0609	54 Neutral	HK$1.05B	13.86	2.75%	3.48%	-11.89%	-69.45%
9933	50 Neutral	HK$1.57B	106.12	2.19%	―	17.98%	374.19%
2198	49 Neutral	HK$2.02B	3.39	11.49%	―	47.32%	492.76%
0954	46 Neutral	€164.21M	―	-10.94%	―	-9.85%	20.22%
0827	35 Underperform	HK$144.67M	―	-76.72%	―	-12.18%	-222.34%

GHW International Corporate Events

GHW International Announces Change in Share Registrar

GHW International, a company incorporated in the Cayman Islands, has announced a change in its Hong Kong Share Registrar and Transfer Office. Effective from July 7, 2025, Tricor Investor Services Limited will take over these responsibilities. This change is significant for shareholders as it affects where share registration and transfer applications are processed, potentially impacting the operational efficiency and stakeholder interactions.

GHW International Successfully Passes All AGM Resolutions

GHW International announced that all resolutions proposed at its Annual General Meeting held on 27 May 2025 were passed by shareholders via poll. The meeting saw participation from shareholders holding approximately 54.92% of the issued shares, and all directors attended either in person or electronically. The successful passing of these resolutions indicates strong shareholder support and could positively impact the company’s governance and strategic initiatives.

GHW International Announces 2025 AGM with Key Resolutions

GHW International has announced its upcoming annual general meeting (AGM) scheduled for May 27, 2025, in Nanjing, China. The AGM will address several key items, including the review of the company’s audited financial statements for 2024, re-election of directors, and re-appointment of the independent auditor. Additionally, the meeting will consider resolutions related to the issuance of shares and other corporate governance matters, which could influence the company’s strategic direction and shareholder value.

GHW International Reports Significant Profit Growth in 2024

GHW International reported a significant financial performance improvement for the year ended December 31, 2024. The company’s revenue increased by 20% to approximately RMB3,862 million, and net profit surged by 374% to approximately RMB12.9 million compared to the previous year. Despite these gains, the Board decided not to recommend a final dividend for the year.