China Huajun Group Limited (0377) AI Stock Analysis

• Market Cap: HK$60.31M
• Dividend Yield: N/A
• Average Volume (3M): 1.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: -15.10%
• EPS Growth: 31.07%
• Country: HK
• Employees: 1,367
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -6.70
• Shares Outstanding: 61,543,076
• 10 Day Avg. Volume: 1,648
• 30 Day Avg. Volume: 1,620
• PEG Ratio: <0.01
• Price to Book (P/B): >-0.01
• Price to Sales (P/S): 0.04
• P/FCF Ratio: 0.51
• 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: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: HK$1.00 ▼(-16.67% Downside)

The overall stock score for China Huajun Group Limited is low due to significant financial challenges, including persistent losses, high leverage, and weak cash flow generation. The technical analysis indicates short-term bullish momentum, but the stock is overbought, adding risk. The negative P/E ratio and lack of dividend yield further highlight valuation concerns.

China Huajun Group Limited Business Overview & Revenue Model

Company Description

China Huajun Group Limited, an investment holding company, manufactures and sells multi-color packaging products, carton boxes, books, brochures, and other paper products in the People's Republic of China, the United States, Hong Kong, European countries, and internationally. It operates through five segments: Printing, Trading and Logistics, Property Development and Investments, Solar Photovoltaic, and Financial Services. The company also offers logistics and supply chain management services; finance leasing and money lending services; marketing, cargo freight, and management services; and securities brokerage, asset management, and other related services, as well as invests in equity securities, funds, and bonds. In addition, it trades in petrochemical, rubber, and paper products. Further, the company develops, invests, and manages real estate properties; and manufactures and sells solar control equipment, monocrystalline silicon wafers, solar stent, polycrystalline silicones, solar cells, coated glasses, rare metals, solar modules, silicon materials, and related products. Additionally, it manufactures and sells hydraulic machinery, solar photovoltaic products, and surgical masks. The company was formerly known as Huajun International Group Limited and changed its name to China Huajun Group Limited in October 2020. The company was incorporated in 1968 and is based in Wanchai, Hong Kong. China Huajun Group Limited is a subsidiary of Huajun Group Limited.

How the Company Makes Money

China Huajun Group Limited generates revenue through multiple streams, including the sale of electronic components and machinery to businesses and consumers. The company capitalizes on its manufacturing capabilities by producing a variety of products that cater to different markets. Key revenue streams include direct sales, export activities, and potential partnerships with other manufacturers and distributors for joint ventures or supply agreements. Additionally, the company's strategic initiatives to enhance product quality and expand into new markets contribute significantly to its earnings and overall financial performance.

China Huajun Group Limited Financial Statement Overview

Summary

The company is facing severe financial challenges, with declining gross and net profit margins, significant revenue decreases, and negative stockholders' equity indicating insolvency risks. Despite positive operating cash flow, overall financial instability is a major concern.

Income Statement

The company has faced significant challenges in its income statement metrics. Gross profit margin has been on a declining trend, reaching a low 1.21% in 2024. Net profit margin also remains deeply negative, indicating ongoing losses. Revenue has decreased dramatically from 2023 to 2024 by 59.41%, further impacting financial stability. Such trends reflect operational inefficiencies and market challenges in the specialty chemicals sector.

Balance Sheet

The balance sheet reveals concerning leverage levels, with a negative stockholders' equity indicating insolvency risks. The debt-to-equity ratio is not meaningful due to negative equity, while the equity ratio also highlights the company's reliance on debt financing. These factors signal financial instability and a potential risk for investors.

Cash Flow

Despite generating positive operating cash flow of $93.57 million in 2024, the company's free cash flow has drastically decreased from the prior year. The cash flow metrics reflect some ability to generate cash, yet this is overshadowed by the overall negative financial performance and high debt levels, suggesting limited capacity for sustainable growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.23B	1.15B	2.84B	1.64B	3.51B	3.52B
Gross Profit	12.52M	13.99M	92.37M	-344.72M	74.10M	40.93M
EBITDA	-124.54M	-626.25M	-1.73B	-1.39B	-632.84M	-370.04M
Net Income	-1.24B	-1.26B	-2.68B	-2.83B	-1.78B	-1.57B
Balance Sheet
Total Assets	4.72B	4.83B	5.64B	11.11B	15.74B	16.99B
Cash, Cash Equivalents and Short-Term Investments	49.47M	36.81M	66.15M	68.39M	164.94M	229.62M
Total Debt	5.21B	5.02B	5.08B	6.82B	11.11B	11.12B
Total Liabilities	12.69B	12.42B	11.95B	14.77B	16.58B	15.88B
Stockholders Equity	-8.09B	-7.62B	-6.35B	-3.70B	-850.62M	1.10B
Cash Flow
Free Cash Flow	-12.32M	90.48M	686.56M	-53.24M	14.40M	-641.08M
Operating Cash Flow	-9.97M	93.57M	689.21M	-42.48M	453.89M	-329.37M
Investing Cash Flow	7.89M	-2.19M	1.19B	92.14M	-357.34M	258.15M
Financing Cash Flow	-6.21M	-119.89M	-1.87B	-115.99M	-158.42M	22.17M

China Huajun Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.20
• 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:0377, the sentiment is Positive. The current price of 1.2 is above the 20-day moving average (MA) of 1.00, above the 50-day MA of 1.13, and above the 200-day MA of 0.95, indicating a bullish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 74.61 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0377.

China Huajun Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1950	64 Neutral	HK$169.92M	6.78	3.61%	―	-12.19%	108.93%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1047	56 Neutral	HK$112.61M	338.89	0.07%	―	5.65%	―
1000	48 Neutral	€130.22M	―	-2.05%	―	-13.57%	34.43%
1932	45 Neutral	HK$139.00M	―	-15.93%	―	-25.21%	12.04%
1561	41 Neutral	HK$86.30M	―	―	―	-41.93%	76.10%
0377	39 Underperform	HK$60.31M	―	―	―	-15.10%	31.07%

China Huajun Group Limited Corporate Events

China Huajun Group Updates on Share Option Scheme in 2024 Annual Report

China Huajun Group Limited has released a supplemental announcement regarding its 2024 Annual Report, focusing on its Share Option Scheme. The company has detailed the number of shares available for issuance under the scheme, which represents approximately 9.80% of the total shares in issue as of the report date. This announcement provides clarity on the company’s share management and may impact investor perceptions regarding the company’s financial strategies.

The most recent analyst rating on (HK:0377) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China Huajun Group Limited stock, see the HK:0377 Stock Forecast page.

China Huajun Group Extends Long Stop Date for Share Subscription

China Huajun Group Limited has announced an extension of the Long Stop Date for the subscription of new shares under a general mandate. The company, which operates in various sectors, is seeking additional time to fulfill the conditions precedent of the Subscription Agreement. The Long Stop Date has been extended from 31 August 2025 to 31 October 2025, allowing more time for the completion of the agreement. This extension indicates the company’s ongoing efforts to meet its strategic objectives and could impact its operational timelines and stakeholder expectations.

The most recent analyst rating on (HK:0377) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China Huajun Group Limited stock, see the HK:0377 Stock Forecast page.

China Huajun Group Releases 2025 Interim Results

China Huajun Group Limited has announced its unaudited interim results for the six months ending June 30, 2025. The results, which comply with the listing requirements of the Hong Kong Stock Exchange, are available on the company’s website and will be dispatched to shareholders preferring printed copies in early September. The announcement reflects the company’s commitment to transparency and provides stakeholders with insights into its financial performance during the first half of the year.

The most recent analyst rating on (HK:0377) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China Huajun Group Limited stock, see the HK:0377 Stock Forecast page.

China Huajun Group Schedules Board Meeting for Interim Results

China Huajun Group Limited has announced a board meeting scheduled for August 29, 2025, to approve the interim results for the first half of the year and to consider an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

China Huajun Group Updates on Financial Action Plan Progress

China Huajun Group Limited has provided a quarterly update on its action plan to address a disclaimer of opinion issued by its auditor regarding the company’s financial statements and going concern status. The company has successfully completed an offshore debt restructuring and issued new shares to raise HK$11,900,000 for general working capital and debt repayment, aiming to resolve the disclaimer of opinion and keep stakeholders informed of its progress.