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Huaxi Holdings Co. Ltd. (1689) AI Stock Analysis

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HK:1689

Huaxi Holdings Co. Ltd.

(HKEX:1689)

Select Model
Rating:59Neutral
Price Target:HKD 0.46â–²(4.55% Upside)
Action:reiterated
Date:10/09/26

The score is driven primarily by mixed fundamentals: continued losses and negative margins weigh on financial performance and valuation, despite a low-leverage balance sheet and improved recent cash generation. Technically, the stock screens stronger with price above key moving averages and supportive momentum indicators, which helps offset weaker profitability.

Positive Factors
Low LeverageVery low leverage provides financial resilience and reduces the burden of interest and refinancing obligations. This gives the company greater flexibility to manage operating volatility, preserve liquidity, and support future investment while profitability remains under pressure.
Negative Factors
Persistent Net LossesRecurring losses indicate that the business has not yet established a durable earnings model. The still-negative 2025 margin limits internally funded growth, weakens shareholder returns, and leaves future performance dependent on achieving further operational improvement.

Huaxi Holdings Co. Ltd. (1689) vs. iShares MSCI Hong Kong ETF (EWH)

-50%-40%-30%-20%-10%0%10%20%HK:1689-4.35%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 308.63M
Dividend Yield
―
Average Volume (3M)
380.82K
Price to Earnings (P/E)
-9.1
Beta (1Y)
0.15
Revenue Growth
-5.37%
EPS Growth
62.99%
Country
Hong Kong
Employees
171
Sector
Consumer Cyclical
Sector Strength
61
Industry
Packaging & Containers

Huaxi Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

As an investment holding company, Huaxi Holdings Company Limited's primary business involves the design, manufacturing, printing, and distribution of various packaging materials for cigarettes within the People's Republic of China. Its offerings incl...

Huaxi Holdings Co. Ltd. Financial Statement Overview

Summary

Financials are mixed. Profitability remains weak with net losses continuing through 2025 and a still-negative net margin (~-23%) despite improvement. Offsetting this, leverage is low (debt-to-equity ~0.02) and cash flow has improved with positive operating cash flow in 2024–2025 and positive free cash flow in 2024–2025, though consistency is a risk.

Income Statement

28Negative

Balance Sheet

72Positive

Cash Flow

62Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue146.85M148.85M143.77M155.39M194.54M404.56M
Gross Profit18.24M46.22M7.38M33.30M47.06M115.70M
EBITDA-87.61M-28.50M-105.46M-31.48M-46.89M60.79M
Net Income-92.07M-34.01M-110.77M-41.18M-53.37M37.00M
Balance Sheet
Total Assets330.92M303.06M350.88M488.50M577.27M732.98M
Cash, Cash Equivalents and Short-Term Investments66.55M99.45M38.99M53.21M99.42M138.36M
Total Debt2.24M3.39M13.17M25.75M24.96M4.13M
Total Liabilities131.53M133.24M153.27M173.30M216.01M282.16M
Stockholders Equity206.27M176.80M204.35M321.79M367.49M457.34M
Cash Flow
Free Cash Flow17.73M28.20M17.19M-2.32M25.44M36.77M
Operating Cash Flow17.61M28.50M17.19M5.49M54.89M38.84M
Investing Cash Flow11.80M6.49M12.08M-37.59M-93.52M-16.82M
Financing Cash Flow-28.18M-12.31M-14.53M-2.15M20.23M-58.35M

Huaxi Holdings Co. Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price0.44

Price Trends

50DMA0.34Positive
100DMA0.31Positive
200DMA0.33Positive

Market Momentum

MACD0.03Positive
RSI60.11Neutral
STOCH41.67Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1689, the sentiment is Positive. The current price of 0.44 is above the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.34, and above the 200-day MA of 0.33, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 60.11 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1689.

Huaxi Holdings Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

HK:1689 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
HK:1689HK:168959NeutralHKD 308.63M-9.05-18.89%―-5.37%62.99%
HK:6898HK:689855NeutralHKD 692.21M28.5712.61%0.56%19.35%53.85%
HK:1820HK:182045NeutralHKD 841.77M-20.91-7.47%2.86%3.70%-24.49%
HK:8291HK:829145NeutralHKD 46.08M8.81-1.85%―50.21%-74.97%
HK:0716HK:071641NeutralHKD 869.51M11.351.77%9.59%-28.18%-67.44%

* Consumer Cyclical Sector Average

Performance Comparison

0%50%100%HK:1689HK:0468HK:0716HK:1820HK:6898HK:8291Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1689 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1689Huaxi Holdings Co. Ltd.0.44-0.01-2.22%
HK:0468Greatview Aseptic Packaging Company 2.500.000.00%
HK:0716Singamas Container Holdings 0.36-0.23-39.17%
HK:1820Pacific Millennium Packaging Group Corp.2.800.6530.11%
HK:6898China Aluminum Cans Holdings Ltd.0.72-0.01-0.69%
HK:8291Wan Cheng Metal Packaging Company Limited0.22-0.01-2.26%

Huaxi Holdings Co. Ltd. Corporate Events

Huaxi Holdings Widens Interim Loss as Revenue Slides 15%

Aug 28, 2026

Huaxi Holdings Company Limited, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, reported interim results that underscore pressure on its core operations. The group’s business generated HK$55.81 million in revenue...

Huaxi Holdings Sets Board Meeting to Review Interim Results and Possible Dividend

Aug 17, 2026

Huaxi Holdings Company Limited has scheduled a board meeting for 28 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider the publication of these interim financial results and discu...

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 09, 2026