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China Huajun Group Limited (0377) AI Stock Analysis

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HK:0377

China Huajun Group Limited

(HKEX:0377)

Select Model
Rating:40Underperform
Price Target:HKD 0.57â–¼(-9.52% Downside)
Action:downgraded
Date:10/15/26

The score is driven primarily by weak financial performance—deep operating losses, materially negative equity, and negative operating/free cash flow—which elevates solvency and liquidity risk. Technicals add pressure given the steep downtrend versus all major moving averages, with only an oversold RSI offering a limited counterpoint. Valuation provides little support because the negative P/E reflects ongoing losses and there is no dividend yield data.

Positive Factors
Revenue GrowthRevenue growth demonstrates that the company is still generating top-line expansion despite its profitability challenges. If this momentum persists, a larger revenue base could improve operating leverage and provide a foundation for rebuilding earnings, although margin recovery remains necessary.
Negative Factors
Materially Negative EquityMaterially negative equity leaves the company with a severely weakened capital base and reduces financial flexibility. It increases solvency and refinancing risk, limits the ability to absorb further losses, and may constrain investment or restructuring choices over the coming periods.

China Huajun Group Limited (0377) vs. iShares MSCI Hong Kong ETF (EWH)

-100%-50%0%50%100%150%200%250%300%HK:0377-55.00%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 38.77M
Dividend Yield
―
Average Volume (3M)
424.44K
Price to Earnings (P/E)
-0.2
Beta (1Y)
0.62
Revenue Growth
9.66%
EPS Growth
92.47%
Country
Hong Kong
Employees
1,212
Sector
Basic Materials
Sector Strength
61
Industry
Chemicals - Specialty

China Huajun Group Limited Business Overview & Revenue Model

Company Description

Established in 1968 and headquartered in Wanchai, Hong Kong, China Huajun Group Limited operates as an investment holding company with a diversified global footprint, extending across the People's Republic of China, the United States, Hong Kong, and...

China Huajun Group Limited Financial Statement Overview

Summary

Despite TTM revenue growth of ~20.7%, profitability remains severely impaired (negative gross margin ~-5.4%, EBIT margin ~-65%, net margin ~-22%). The balance sheet is a major constraint with materially negative equity (~-8.13B) alongside high debt (~3.39B). Cash flow is also weak with negative TTM operating cash flow (~-71M) and negative free cash flow (~-77M), increasing liquidity and funding risk.

Income Statement

14Very Negative

Balance Sheet

6Very Negative

Cash Flow

18Very Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.61B1.36B1.15B2.84B1.64B3.51B
Gross Profit-90.74M-105.30M13.99M92.37M-344.72M74.10M
EBITDA-994.09M-984.81M-626.25M-1.73B-1.39B-632.84M
Net Income-335.37M-234.10M-1.26B-2.68B-2.83B-1.78B
Balance Sheet
Total Assets2.87B3.07B4.83B5.64B11.11B15.74B
Cash, Cash Equivalents and Short-Term Investments55.74M42.45M36.81M66.15M68.39M164.94M
Total Debt3.39B3.53B5.02B5.08B6.82B11.11B
Total Liabilities10.89B10.77B12.42B11.95B14.77B16.58B
Stockholders Equity-8.13B-7.82B-7.62B-6.35B-3.70B-850.62M
Cash Flow
Free Cash Flow-76.61M-71.51M90.48M686.56M-53.24M14.40M
Operating Cash Flow-71.34M-68.54M93.57M689.21M-42.48M453.89M
Investing Cash Flow190.70M121.50M-2.19M1.19B92.14M-357.34M
Financing Cash Flow-126.33M-61.91M-119.89M-1.87B-115.99M-158.42M

China Huajun Group Limited Technical Analysis

Technical Analysis SentimentNegative
Last Price0.63

Price Trends

50DMA2.51Negative
100DMA2.31Negative
200DMA1.68Negative

Market Momentum

MACD-0.46Negative
RSI26.20Positive
STOCH27.40Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0377, the sentiment is Negative. The current price of 0.63 is below the 20-day moving average (MA) of 0.77, below the 50-day MA of 2.51, and below the 200-day MA of 1.68, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 26.20 is Positive, neither overbought nor oversold. The STOCH value of 27.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0377.

China Huajun Group Limited Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

HK:0377 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:0408HK:040862NeutralHKD 1.46B6.825.15%7.72%6.66%65.39%
Sector *61Neutral$10.43B7.12-0.05%2.87%2.86%-36.73%
HK:0546HK:054652NeutralHKD 9.98B0.245.20%4.10%1.18%-65.68%
HK:2502HK:250251NeutralHKD 852.91M18.342.33%―-4.75%―
HK:3318HK:331850NeutralHKD 3.12B-2.50-51.09%―11.19%-3035.78%
HK:0301HK:030143NeutralHKD 3.58B-191.93-8.09%―3.15%50.74%
HK:0377HK:037740UnderperformHKD 118.12M-0.174.21%―9.66%92.47%

* Basic Materials Sector Average

Performance Comparison

0%200%400%HK:0377HK:0408HK:3318HK:0546HK:0301HK:2502Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:0377 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:0377China Huajun Group Limited0.63-0.57-47.50%
HK:0408Yip's Chemical Holdings 2.590.7137.84%
HK:3318China Boton Group Co., Ltd.2.881.1364.86%
HK:0546Fufeng Group Limited3.98-4.11-50.82%
HK:0301SANVO Fine Chemicals Group Limited7.606.35508.00%
HK:2502Henan Jinyuan Hydrogenated Chemicals Co., Ltd. Class H0.510.1334.21%

China Huajun Group Limited Corporate Events

China Huajun Responds to Share Price Volatility Amid Talks on Potential Disposal

Sep 22, 2026

China Huajun Group Limited, incorporated in Bermuda and listed in Hong Kong under stock code 377, operates through a group structure overseen by a mixed board of executive, non-executive and independent directors. The company’s shares trade on...

China Huajun Completes Debt Capitalisation and Reshapes Shareholding Structure

Sep 2, 2026

China Huajun Group Limited has completed a debt capitalisation transaction, issuing 94 million new shares at HK$1.0 each under a specific mandate to a creditor, thereby enlarging its total share capital from 93,491,851 to 187,491,851 shares and stren...

China Huajun Announces Major Board and Leadership Reshuffle Effective September 2026

Aug 31, 2026

China Huajun Group Limited, a Bermuda-incorporated company listed in Hong Kong, is governed by a board comprising executive, non-executive and independent non-executive directors. Its corporate structure and leadership are central to the group’...

China Huajun Sets Out Board Composition and Committee Roles

Aug 31, 2026

China Huajun Group Limited, a Bermuda-incorporated company listed on the Hong Kong Stock Exchange, has disclosed the current composition of its board. The structure is led by executive chairman and chief executive officer Li Gang, alongside non-execu...

China Huajun Publishes Unaudited Interim Results for First Half of 2026

Aug 28, 2026

China Huajun Group Limited has released its unaudited interim results for the six months ended 30 June 2026, fulfilling Hong Kong listing requirements for preliminary interim disclosures. The announcement forms part of the company’s 2026 Interi...

China Huajun Shareholders Approve Debt Settlement and Control Shift

Aug 26, 2026

Independent shareholders of China Huajun Group Limited have overwhelmingly approved a settlement agreement, a specific mandate, and related authorisations at a special general meeting held on 26 August 2026. The resolutions, all passed by poll with v...

China Huajun Board Sets August Meeting to Approve Interim Results and Mull Dividend

Aug 18, 2026

China Huajun Group Limited, incorporated in Bermuda and listed in Hong Kong under stock code 377, oversees a diversified group of subsidiaries under a board comprised of executive and independent non-executive directors. The company’s leadershi...

China Huajun Sends Circular on Debt Capitalisation, Seeks Whitewash Waiver

Aug 4, 2026

China Huajun Group Limited has despatched a circular to shareholders detailing a proposed issue of new shares under a specific mandate to capitalise debt, alongside an application for a whitewash waiver under the Takeovers Code. The documents include...

China Huajun Calls August SGM to Approve Debt Capitalisation and Whitewash Waiver

Aug 3, 2026

China Huajun Group Limited has called a special general meeting in Hong Kong on 26 August 2026, where shareholders will vote on approving a settlement agreement with a creditor involving a debt capitalisation plan. The proposal includes granting dire...

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 15, 2026