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Huabao International Holdings (HK:0336)
:0336
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Huabao International Holdings (0336) AI Stock Analysis

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HK:0336

Huabao International Holdings

(OTC:0336)

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Neutral 45 (OpenAI - 4o)
Rating:45Neutral
Price Target:
HK$3.50
▼(-4.63% Downside)
Huabao International Holdings faces significant challenges with declining revenues, profitability issues, and negative cash flows, which are the most impactful factors. Technical indicators also suggest a bearish trend. Despite a strong balance sheet and a reasonable dividend yield, these factors are not enough to offset the overall negative outlook.

Huabao International Holdings (0336) vs. iShares MSCI Hong Kong ETF (EWH)

Huabao International Holdings Business Overview & Revenue Model

Company DescriptionHuabao International Holdings Limited is a leading manufacturer and supplier in the tobacco and flavoring industry, primarily engaged in the production of tobacco-related products and flavors. The company operates through two main segments: the tobacco segment, which includes the production of cigarette paper, and the flavor segment, which specializes in the development of food and beverage flavors. With a strong presence in both domestic and international markets, Huabao leverages its innovative research and development capabilities to provide high-quality products tailored to customer needs.
How the Company Makes MoneyHuabao International generates revenue primarily through the sale of its tobacco products and flavoring solutions. The company’s key revenue streams include the sale of cigarette paper to tobacco manufacturers and the provision of custom flavoring solutions to food and beverage companies. In addition to its core products, Huabao benefits from strategic partnerships with major tobacco firms, which ensure a steady demand for its products. Furthermore, the company invests in research and development to innovate and expand its product offerings, catering to changing consumer preferences and regulatory landscapes, which contributes to its overall earnings.

Huabao International Holdings Financial Statement Overview

Summary
Huabao International Holdings shows a mixed financial performance. The balance sheet is strong with low leverage and high equity ratio, scoring 75. However, declining revenues and profitability issues, along with negative cash flows, significantly lower the overall financial performance score.
Income Statement
45
Neutral
Huabao International Holdings has faced declining revenue over recent years, with a revenue decrease of 13.5% from 2019 to 2024. The gross profit margin stands at 42.7% in 2024, indicating a reasonable level of profitability, although it has decreased from previous years. The company recorded a net loss in 2024, leading to a negative net profit margin of -11.4%, highlighting profitability concerns and operational challenges.
Balance Sheet
75
Positive
The balance sheet is relatively strong, with a low debt-to-equity ratio of 0.02 in 2024, indicating low financial leverage. The equity ratio is healthy at 80.5%, suggesting strong financial stability. However, the reduction in stockholders' equity over the years may indicate potential risks if this trend continues.
Cash Flow
30
Negative
Cash flow analysis reveals concerns, with free cash flow consistently declining from 2020 onwards. Operating cash flow was zero in 2024, raising alarms about liquidity and cash management. The absence of positive free and operating cash flows in 2024 signals potential cash flow management issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.41B3.37B3.31B3.83B3.88B3.85B
Gross Profit1.44B1.44B1.47B1.88B2.30B2.44B
EBITDA400.23M464.38M758.37M-352.00M1.51B1.37B
Net Income-297.09M-385.51M233.63M-1.05B675.13M418.40M
Balance Sheet
Total Assets14.80B15.00B16.00B16.62B18.03B17.68B
Cash, Cash Equivalents and Short-Term Investments5.97B6.27B6.43B6.44B6.89B6.91B
Total Debt191.59M237.75M500.17M738.47M1.00B2.77B
Total Liabilities1.06B1.28B1.73B2.06B2.31B3.98B
Stockholders Equity12.08B12.08B12.48B12.65B13.88B11.87B
Cash Flow
Free Cash Flow422.74M380.94M503.60M307.95M973.52M1.28B
Operating Cash Flow566.20M679.70M965.27M798.75M1.41B1.46B
Investing Cash Flow969.24M1.01B-2.60B1.24B-2.10B1.18B
Financing Cash Flow-201.77M-646.39M-674.20M-997.63M-672.72M-1.03B

Huabao International Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.67
Price Trends
50DMA
4.01
Negative
100DMA
3.63
Positive
200DMA
2.97
Positive
Market Momentum
MACD
-0.08
Positive
RSI
40.33
Neutral
STOCH
27.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0336, the sentiment is Negative. The current price of 3.67 is below the 20-day moving average (MA) of 3.82, below the 50-day MA of 4.01, and above the 200-day MA of 2.97, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 40.33 is Neutral, neither overbought nor oversold. The STOCH value of 27.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0336.

Huabao International Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
HK$1.16B8.783.36%7.24%-5.37%25.20%
HK$21.89B6.6317.00%5.24%1.77%16.24%
$10.43B7.12-0.05%2.87%2.86%-36.73%
HK$713.36M-24.58-1.52%5.93%0.37%-331.54%
HK$11.52B-11.48%10.08%-525.53%
HK$11.72B-2.45%3.78%1.52%-373.77%
HK$1.93B-1.08%-23.46%-126.64%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0336
Huabao International Holdings
3.63
1.32
57.01%
HK:0408
Yip's Chemical Holdings
2.07
0.63
43.55%
HK:3318
China Boton Group Co., Ltd.
1.79
-0.05
-2.72%
HK:0546
Fufeng Group Limited
8.04
3.88
93.32%
HK:1440
Deyun Holding Ltd.
9.14
-5.34
-36.88%
HK:1986
Tsaker New Energy Tech Co., Limited
0.72
-0.08
-10.00%

Huabao International Holdings Corporate Events

Huabao International Reports Decline in Revenue and Profit for 2025
Oct 27, 2025

Huabao International Holdings Limited announced the financial results of its subsidiary, Huabao Flavours & Fragrances Co., Ltd., for the nine months ending September 30, 2025. The report indicates a decline in revenue by 7.21% and a significant drop in net profit attributable to shareholders by 57% compared to the previous year. Despite these declines, the net profit net of non-recurring items showed a slight increase of 3.53%. The financial indicators suggest challenges in maintaining profitability, impacting the company’s market position and potentially affecting shareholder confidence.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao International Expands Financial Investments with Bank of Jiangsu
Sep 15, 2025

Huabao International Holdings Limited announced a further subscription of financial products from the Bank of Jiangsu Group, totaling RMB1,210 million. This transaction, categorized as a discloseable transaction under Hong Kong’s Listing Rules, is expected to generate reasonable interest without adversely affecting the company’s financial position. The investment includes capital-protected structured deposits with varying maturity dates and interest rates, reflecting Huabao’s strategic financial management to optimize returns.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao International Announces Change in Authorized Representative
Aug 31, 2025

Huabao International Holdings Limited has announced a change in its authorized representative. Mr. Xia Liqun will cease his role, and Ms. Choy Man Har has been appointed as the new authorized representative, effective immediately. This change is significant as the authorized representative acts as the main communication channel between the company and The Stock Exchange of Hong Kong Limited for listing matters.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao International Expands Financial Product Investments
Aug 28, 2025

Huabao International Holdings Limited announced a further subscription of financial products through a member of its group with the Bank of Jiangsu Group, totaling RMB892 million. This transaction, which took place on August 28, 2025, constitutes a discloseable transaction under the Hong Kong Stock Exchange’s Listing Rules due to the investment amount exceeding certain percentage thresholds. The company assures that the subscription will not adversely affect its financial position and expects reasonable interest from the investment.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao International Grants Share Options under 2024 Scheme
Aug 25, 2025

Huabao International Holdings Limited has announced the grant of share options under its 2024 Share Option Scheme. On August 25, 2025, the company offered 148,128,000 share options to 77 eligible participants, including three executive directors. The exercise price is set at HK$3.95 per share, with different exercise periods for various tranches. This move is part of the company’s strategy to align the interests of its employees with its long-term performance goals, potentially impacting its market positioning and stakeholder engagement.

The most recent analyst rating on (HK:0336) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Huabao International Holdings stock, see the HK:0336 Stock Forecast page.

Huabao International Reports Strong Interim Results with Significant Profit Growth
Aug 18, 2025

Huabao International Holdings Limited reported a modest increase in revenue by 2.5% for the first half of 2025 compared to the same period in 2024, reaching RMB 1,621,157,000. The company experienced a significant rise in profit attributable to equity holders by 298.1%, indicating improved operational efficiency and profitability. The earnings per share also saw a substantial increase, reflecting the company’s strong financial performance. Despite a slight decline in gross profit margin, the operating profit margin improved, showcasing effective cost management. This financial performance could enhance Huabao’s industry positioning and stakeholder confidence.

Huabao International Reports Significant Decline in Half-Year Financial Performance
Aug 18, 2025

Huabao International Holdings Limited announced the principal accounting data and financial indicators for its subsidiary, Huabao Flavours & Fragrances Co., Ltd., for the six months ended June 30, 2025. The report highlights a significant decrease in revenue and net profit attributable to shareholders compared to the previous year, with an 8.41% drop in revenue and an 87.95% decline in net profit. The financial performance reflects challenges in the company’s operations, potentially impacting its market positioning and stakeholder confidence.

Huabao International Declares Interim Dividend for First Half of 2025
Aug 18, 2025

Huabao International Holdings Limited announced an interim dividend of HKD 0.012 per share for the six months ending June 30, 2025. This decision reflects the company’s ongoing commitment to delivering shareholder value and indicates a stable financial performance for the first half of the year. The ex-dividend date is set for September 12, 2025, with the payment date scheduled for October 10, 2025. This announcement is likely to reassure investors of the company’s steady operational performance and its strategic focus on maintaining shareholder returns.

Huabao International Declares Special Dividend for Mid-2025
Aug 18, 2025

Huabao International Holdings Limited has announced a special cash dividend of HKD 0.032 per share for the six months ended 30 June 2025. The dividend will be paid on 10 October 2025, with the ex-dividend date set for 12 September 2025. This announcement reflects the company’s financial strategy and commitment to returning value to its shareholders, potentially impacting its market positioning positively.

Huabao International Holdings Announces Board Meeting for Interim Results
Aug 6, 2025

Huabao International Holdings Limited, a company incorporated in Bermuda, has announced that its board of directors will meet on 18 August 2025 to approve the unaudited interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it may impact the company’s financial strategies and shareholder returns, reflecting on its operational performance and market positioning.

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: Oct 29, 2025