Fufeng Group Limited (0546) AI Stock Analysis

• Market Cap: €22.06B
• Dividend Yield: 3.98%
• Average Volume (3M): 5.55M
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.66
• Revenue Growth: 1.77%
• EPS Growth: 16.24%
• Country: HK
• Employees: 17,376
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.78
• Shares Outstanding: 2,507,241,000
• 10 Day Avg. Volume: 3,682,859
• 30 Day Avg. Volume: 5,551,483
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €9.03
• Price Target Upside: 2.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: HK$9.00 ▲(2.27% Upside)

The stock's overall score is bolstered by strong technical indicators and a compelling valuation, with the price trending above key moving averages. While financial performance is robust, attention is needed on cash flow management and debt levels. The absence of earnings call data and corporate events means these do not influence the score.

Fufeng Group Limited Business Overview & Revenue Model

Company Description

Fufeng Group Limited (0546) is a leading bio-fermentation products manufacturer in China, primarily engaged in the production and distribution of amino acids, xanthan gum, and other food additives. The company operates within the biochemical sector, focusing on the development of fermentation technologies to produce high-quality ingredients for the food, beverage, animal nutrition, pharmaceutical, and oil industries. Fufeng Group holds a significant position in the global markets due to its extensive product portfolio and commitment to innovation.

How the Company Makes Money

Fufeng Group Limited generates revenue through the production and sale of its bio-fermentation products. The company's primary revenue streams include the sale of amino acid products, such as monosodium glutamate (MSG) and threonine, as well as xanthan gum, which is widely used as a thickening and stabilizing agent in various industries. Fufeng also earns income from the sale of fertilizers and other biochemical products derived from its fermentation processes. The company benefits from economies of scale and has established significant partnerships and customer relationships, contributing to its financial performance. Additionally, Fufeng's focus on technological advancements and cost-effective production methods enhances its competitive edge and market position.

Fufeng Group Limited Financial Statement Overview

Summary

Fufeng Group Limited shows strong revenue growth and profitability, with a solid balance sheet. However, the increase in debt and recent cash flow challenges slightly reduce the score.

Income Statement

The income statement reflects robust financial performance with a consistent revenue growth trend over the years. The gross profit margin for the latest period is approximately 18.22%, and the net profit margin stands at 8.33%. Despite a slight decline in revenue growth in 2024, the company has maintained strong EBIT and EBITDA margins, indicating efficient operational management.

Balance Sheet

The balance sheet is relatively strong with a stable equity base and a manageable debt-to-equity ratio of 0.62. The equity ratio is approximately 50.8%, highlighting a solid asset base. However, there has been an increase in total debt, which could pose potential risks if not managed carefully.

Cash Flow

Cash flow analysis indicates some concerns with operating cash flow being zero in the latest period, which could impact liquidity. Historical data shows fluctuations in free cash flow, with a negative trend in the recent year. The free cash flow to net income ratio was negative previously, pointing to challenges in converting income into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.76B	28.01B	27.47B	21.54B	16.69B
Gross Profit	5.06B	6.25B	7.21B	3.91B	2.82B
EBITDA	3.44B	4.47B	6.26B	2.89B	2.11B
Net Income	2.31B	3.14B	3.86B	1.28B	629.90M
Balance Sheet
Total Assets	36.09B	32.56B	26.39B	21.51B	19.36B
Cash, Cash Equivalents and Short-Term Investments	10.03B	2.83B	7.08B	3.59B	1.27B
Total Debt	11.37B	9.73B	6.04B	4.23B	3.47B
Total Liabilities	17.75B	15.24B	10.89B	8.83B	7.67B
Stockholders Equity	18.34B	17.32B	15.49B	12.68B	11.69B
Cash Flow
Free Cash Flow	1.73B	-618.75M	2.61B	2.28B	-782.99M
Operating Cash Flow	2.96B	1.70B	3.60B	2.77B	205.62M
Investing Cash Flow	-1.10B	-1.51B	-647.64M	-549.54M	-1.11B
Financing Cash Flow	1.10B	-436.59M	92.41M	525.07M	-99.11M

Fufeng Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0546, the sentiment is Neutral. The current price of 8.8 is below the 20-day moving average (MA) of 9.11, below the 50-day MA of 8.85, and above the 200-day MA of 6.51, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 43.88 is Neutral, neither overbought nor oversold. The STOCH value of 11.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0546.

Fufeng Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0546	75 Outperform	€22.06B	6.69	17.00%	3.98%	1.77%	16.24%
0408	74 Outperform	HK$1.05B	8.09	2.56%	8.06%	-5.37%	25.20%
1440	58 Neutral	HK$11.58B	-312.59	-4.20%	―	10.08%	-525.53%
0336	58 Neutral	HK$12.24B	-37.82	-3.19%	3.61%	1.52%	-373.77%
3318	53 Neutral	HK$2.13B	-57.77	0.59%	―	-23.46%	-126.64%
1986	46 Neutral	HK$742.28M	-25.58	-1.20%	5.63%	0.37%	-331.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Fufeng Group Limited Corporate Events

Fufeng Group Enters Connected Transaction for Land Development

Fufeng Group Limited, through its subsidiaries Shandong Fufeng, Fufeng Marketing, and Qingdao Wanchuang, has entered into a Sale and Purchase Agreement with Junan Zhifeng, Linyi Chengchuang, and Qingdao Yijing. This agreement involves Qingdao Yijing developing a parcel of land under the guidance of Fufeng’s subsidiaries, with Junan Zhifeng and Linyi Chengchuang financing the construction without interest. The transaction, valued at up to RMB365,650,000, is classified as a connected transaction under Hong Kong’s Listing Rules, requiring reporting and announcement but exempt from shareholder approval.

Fufeng Group Updates Nomination Committee Terms

Fufeng Group Limited has amended the terms of reference for its Nomination Committee, which is part of the board of directors. The committee is responsible for nominating board members and ensuring diversity, with a requirement for at least one member of a different gender. The changes aim to enhance governance by ensuring a majority of independent non-executive directors and setting clear procedures for meetings and decision-making.

Fufeng Group Projects Significant Profit Growth Amid Market Challenges

Fufeng Group Limited has announced a positive profit alert, expecting a significant increase in net profit for the first half of 2025 by approximately RMB 0.7 billion compared to the same period in 2024. This growth is attributed to increased sales volumes and reduced raw material costs, along with a compensation amount received from Xinjiang Meihua and Meihua Biotechnology. However, the company cautions that geopolitical tensions and uncertain trade policies could impact future performance.

Fufeng Group Limited Successfully Passes All Resolutions at 2025 AGM

Fufeng Group Limited, a company incorporated in the Cayman Islands, held its Annual General Meeting on May 29, 2025. During the meeting, all proposed resolutions were passed, including the adoption of financial statements, approval of dividends, re-election of directors, and granting of mandates to issue and repurchase shares. The successful passing of these resolutions indicates strong shareholder support and positions the company for continued operational and strategic initiatives.