Changmao Biochemical Engineering Co. Ltd. Class H (0954) AI Stock Analysis

• Market Cap: HK$148.32M
• Dividend Yield: N/A
• Average Volume (3M): 498.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -9.85%
• EPS Growth: 20.22%
• Country: HK
• Employees: 571
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Chemicals
• EPS (TTM): -0.14
• Shares Outstanding: 183,700,000
• 10 Day Avg. Volume: 117,600
• 30 Day Avg. Volume: 498,933
• PEG Ratio: -0.05
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.72
• 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: 38 Underperform
• Price Target: ―

Changmao Biochemical Engineering Co. Ltd.'s stock is facing considerable challenges. The most significant factor is its poor financial performance, marked by declining revenues and profitability. The technical analysis indicates bearish momentum with the stock trading below key moving averages and being oversold. Additionally, the negative P/E ratio and lack of dividends further highlight valuation concerns. Immediate efforts to enhance financial health and operational efficiency are crucial to improve the stock's outlook.

Changmao Biochemical Engineering Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Changmao Biochemical Engineering Company Limited, together with its subsidiaries, produces and sells organic acids for food additive, chemical, and pharmaceutical industries in Mainland China, Europe, the Asia Pacific, the United States, and internationally. Its products include fumaric acid, maleic acid, L-malic acid, D-malic acid, DL-malic acid, L(+)-tartaric acid, D(-)-tartaric acid, DL-tartaric acid, L-aspartic acid, and aspartame that are used as food additives, pharmaceutical adjuvant, and active pharmaceutical ingredient, etc. The company is also involved in the research and development of medicine and nutraceutical products; production and sale of food additives; trading of organic acids; and property holding activities. Changmao Biochemical Engineering Company Limited was founded in 1992 and is headquartered in Changzhou, the People's Republic of China.

How the Company Makes Money

Changmao Biochemical Engineering Co. Ltd. generates revenue through the sale of its organic acid products. The company's primary revenue streams come from supplying its products to various industrial sectors, including food and beverage, where these acids are used as acidulants, preservatives, and flavor enhancers. Additionally, its products serve the chemical and pharmaceutical industries as intermediates and additives. The company's earnings are influenced by its ability to maintain efficient production processes, competitive pricing, and strong distribution networks. Strategic partnerships with distributors and manufacturers in different regions also play a critical role in expanding its market reach and boosting sales.

Changmao Biochemical Engineering Co. Ltd. Class H Financial Statement Overview

Summary

Changmao Biochemical Engineering Co. Ltd. is facing significant financial challenges, with declining revenues, negative profit margins, and increasing leverage. The company needs to address its operational inefficiencies and improve cash flow management to stabilize its financial position.

Income Statement

The company has been experiencing declining revenue with a noticeable drop from 2023 to 2024. The gross profit margin has shrunk significantly over the years, and both EBIT and EBITDA margins are negative, indicating inefficiency in operations. The net profit margin is also negative, highlighting ongoing losses, which raises concerns about the company's profitability.

Balance Sheet

While the company maintains a reasonable equity ratio, the debt-to-equity ratio has increased over the years, suggesting rising leverage. The return on equity has also turned negative, reflecting unprofitable operations. Despite these challenges, the company still holds a substantial amount of stockholders' equity.

Cash Flow

The company has struggled with generating positive free cash flow, and operating cash flow has been inconsistent. The free cash flow growth rate has been negative, and both operating and free cash flow to net income ratios are unfavorable, indicating poor cash generation relative to earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
584.79M	637.08M	730.03M	547.98M	444.11M
	Gross Profit
16.78M	25.81M	180.83M	38.68M	103.04M
	EBIT
-57.07M	-52.05M	89.37M	-38.35M	17.00M
	EBITDA
-17.71M	-8.25M	122.52M	115.58M	50.00M
	Net Income Common Stockholders
-68.24M	-86.06M	81.42M	58.32M	16.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
74.56M	96.56M	63.63M	58.63M	134.34M
	Total Assets
1.25B	1.24B	1.21B	956.51M	847.33M
	Total Debt
536.13M	494.64M	291.50M	89.25M	805.00K
	Net Debt
478.17M	405.09M	231.51M	30.63M	-133.54M
	Total Liabilities
666.42M	590.91M	427.86M	258.99M	197.41M
	Stockholders Equity
583.45M	651.69M	778.53M	697.10M	649.38M
Cash Flow		Free Cash Flow
0.00	-141.52M	-203.89M	-259.14M	-20.76M
	Operating Cash Flow
0.00	-2.35M	19.63M	-6.94M	58.91M
	Investing Cash Flow
0.00	-122.11M	-220.71M	-144.62M	7.15M
	Financing Cash Flow
0.00	153.84M	199.55M	76.75M	-49.76M

Changmao Biochemical Engineering Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 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:0954, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.32, and below the 200-day MA of 0.40, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.27 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0954.

Changmao Biochemical Engineering Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	50 Neutral	$2.01B	-1.12	-21.15%	3.68%	2.69%	-30.65%
0954	38 Underperform	HK$148.32M	―	-10.94%	―	-9.85%	20.22%
BKFCF		$72.12B	5.40		6.04%	―	―
CHJTF		$11.88B	16.93	13.20%	4.42%	―	―
SFOSF		$8.56B	12.84	6.22%	2.00%	―	―
SHPMF		$8.48B	9.00	6.08%	4.63%	―	―
ZIJMF		$63.92B	11.74	27.63%	2.41%	―	―

Changmao Biochemical Engineering Co. Ltd. Class H Corporate Events

Changmao Biochemical Engineering Announces AGM and Key Resolutions

Changmao Biochemical Engineering Co. Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for May 28, 2025, in Hong Kong. Key agenda items include the approval of the 2024 financial statements, the resignation and election of directors and supervisors, and the re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, a special resolution will be considered to grant the board a mandate to issue new shares, which could impact the company’s capital structure and shareholder value.

Changmao Biochemical Announces Director Resignations Due to Retirement

Changmao Biochemical Engineering Co. Ltd. announced the proposed resignation of two non-executive directors, Mr. Zeng Xian Biao and Mr. Wang Jian Ping, due to their retirement. This change in the board’s composition is not expected to affect the company’s operations or strategic direction, as all other aspects of the previous announcement remain unchanged.

Changmao Biochemical Announces Board Changes to Drive Future Growth

Changmao Biochemical Engineering Co. Ltd. has announced the proposed resignation of two non-executive directors, Mr. Zeng Xian Biao and Mr. Wang Jian Ping, due to personal reasons, effective from June 18, 2025. The company expresses gratitude for their contributions and plans to appoint Ms. Rui Xiao Qian as an executive director and Mr. Lin Ze Yu as a non-executive director, pending approval at the upcoming annual general meeting. These changes are part of the company’s strategy to enhance board diversity and leverage the new directors’ expertise to drive future growth.

Changmao Biochemical Reports Decreased Revenue and Losses for 2024

Changmao Biochemical Engineering Co. Ltd. reported its annual results for the year ended December 31, 2024, revealing a decrease in revenue to RMB 584,794,000 from RMB 637,078,000 in 2023. The company also reported a reduced loss attributable to shareholders, amounting to RMB 68,243,000 compared to RMB 86,057,000 the previous year. Despite the reduced losses, the board has decided not to recommend the payment of a final dividend for the year. This financial performance reflects ongoing challenges in the company’s operations, impacting its market positioning and stakeholder expectations.

Changmao Biochemical Engineering Schedules Board Meeting for Key Financial Decisions

Changmao Biochemical Engineering Company Limited has announced that its board of directors will hold a meeting on March 28, 2025. The meeting will address several key issues, including the approval of the audited financial statements for the year ending December 31, 2024, consideration of a final dividend, and the planning of the company’s annual general meeting. This meeting is significant for stakeholders as it will provide insights into the company’s financial health and strategic decisions for the upcoming year.