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China Risun Group Ltd. (HK:1907)
:1907

China Risun Group Ltd. (1907) AI Stock Analysis

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China Risun Group Ltd.

(Frankfurt:1907)

Rating:54Neutral
Price Target:
HK$2.50
▲(1.21%Upside)
The overall stock score reflects the financial performance challenges, particularly the high leverage and declining profitability, which pose risks. Technical indicators show mixed momentum signals, while valuation concerns are significant due to the extremely high P/E ratio. The dividend yield is modest, providing some income potential but not enough to offset valuation concerns.

China Risun Group Ltd. (1907) vs. iShares MSCI Hong Kong ETF (EWH)

China Risun Group Ltd. Business Overview & Revenue Model

Company DescriptionChina Risun Group Ltd. (1907) is a leading integrated coke, coking chemical, and refined chemical producer and supplier in China. The company operates in sectors including coal chemicals, chemical materials and chemical products manufacturing. Its core products include coke, coking chemicals, and refined chemicals, which serve various industries such as steel, pharmaceuticals, and automotive.
How the Company Makes MoneyChina Risun Group Ltd. generates revenue primarily through the production and sale of coke and coking chemical products. The company sells these products to a diverse range of industries, including steel manufacturers, who use coke as a key input in their production processes. Additionally, Risun produces refined chemicals that are sold to various sectors like pharmaceuticals and automotive, contributing significantly to its revenue streams. The company has established strategic partnerships with major domestic and international clients, which help ensure a steady demand for its products. Furthermore, Risun's integrated business model allows it to capitalize on synergies between its different product lines, optimizing production efficiency and cost-effectiveness.

China Risun Group Ltd. Financial Statement Overview

Summary
China Risun Group Ltd. demonstrates stable revenue growth but faces profitability challenges with a declining net profit margin. The balance sheet reveals high leverage, posing financial risks, though the equity ratio indicates a balanced asset structure. Cash flow generation shows improvement, reflecting operational resilience, but net income volatility remains a concern.
Income Statement
60
Neutral
The company shows a stable revenue growth trend with a Revenue Growth Rate of 3.20% in 2024 compared to 2023. However, the net profit margin has significantly decreased to 0.04% in 2024, indicating profitability challenges. Gross Profit Margin is moderate at 7.34%, and the EBIT Margin has decreased to 2.97% in 2024, suggesting reduced operational efficiency.
Balance Sheet
55
Neutral
The Debt-to-Equity Ratio is relatively high at 2.38, indicating significant leverage, which poses a risk. Return on Equity (ROE) has drastically fallen to 0.16% in 2024, suggesting poor profitability relative to shareholder equity. The Equity Ratio remains moderate at 21.32%, indicating a balanced asset structure but high reliance on debt.
Cash Flow
65
Positive
The Free Cash Flow Growth Rate shows a strong increase, reflecting improved cash generation. However, Operating Cash Flow to Net Income Ratio has weakened due to the drop in net income. The Free Cash Flow to Net Income Ratio is favorable, indicating resilience in cash flow generation despite profitability issues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue47.54B46.07B43.14B38.43B19.78B
Gross Profit3.49B3.32B4.28B5.53B3.22B
EBITDA3.50B4.37B4.63B5.45B3.22B
Net Income20.13M860.81M1.86B2.61B1.65B
Balance Sheet
Total Assets59.84B53.84B46.10B36.80B24.21B
Cash, Cash Equivalents and Short-Term Investments2.26B1.25B1.40B2.37B1.19B
Total Debt30.38B26.31B20.70B13.80B10.57B
Total Liabilities43.96B39.36B33.51B25.69B15.94B
Stockholders Equity12.76B12.90B12.11B10.98B8.13B
Cash Flow
Free Cash Flow-1.40B134.87M-1.22B534.69M-725.01M
Operating Cash Flow1.44B2.20B3.16B4.21B1.14B
Investing Cash Flow-3.64B-1.71B-9.18B-5.13B-2.19B
Financing Cash Flow3.05B-455.15M4.93B2.02B1.18B

China Risun Group Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.47
Price Trends
50DMA
2.49
Negative
100DMA
2.57
Negative
200DMA
2.80
Negative
Market Momentum
MACD
<0.01
Positive
RSI
45.40
Neutral
STOCH
17.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1907, the sentiment is Negative. The current price of 2.47 is below the 20-day moving average (MA) of 2.50, below the 50-day MA of 2.49, and below the 200-day MA of 2.80, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.40 is Neutral, neither overbought nor oversold. The STOCH value of 17.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1907.

China Risun Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$119.76B6.4920.63%3.33%2.84%
80
Outperform
HK$840.25B10.8412.78%7.28%-7.73%-6.97%
76
Outperform
$149.71B6.0412.03%10.67%-4.04%-12.32%
76
Outperform
HK$10.41B10.187.27%8.12%12.03%20.45%
64
Neutral
$111.29B5.0722.05%8.23%2.87%
58
Neutral
HK$16.18B4.23-6.43%9.52%-3.39%-61.30%
54
Neutral
€11.00B494.000.15%1.38%1.42%-97.94%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1907
China Risun Group Ltd.
2.47
-0.47
-16.04%
HK:1088
China Shenhua Energy Co
34.20
-3.01
-8.09%
HK:1171
Yankuang Energy Group Company Limited Class H
7.74
-2.67
-25.64%
HK:2600
Aluminum of China
5.27
0.08
1.58%
HK:1898
China Coal Energy Co
9.00
0.61
7.22%
HK:2343
Pacific Basin Shipping
2.08
-0.24
-10.50%

China Risun Group Ltd. Corporate Events

China Risun Group Secures Shareholder Approval for Key Resolutions at AGM
May 30, 2025

China Risun Group Limited announced that all resolutions proposed at its Annual General Meeting (AGM) held on May 30, 2025, were approved by shareholders. The resolutions included the approval of the company’s financial statements, re-election of directors, re-appointment of the external auditor, and the declaration of a special dividend. The approval of these resolutions reflects strong shareholder support and could positively impact the company’s financial strategy and market perception.

China Risun Group Announces Special Dividend for 2024
May 30, 2025

China Risun Group Limited announced the approval of a special cash dividend of RMB 0.0222 per share for the financial year ending December 31, 2024. The dividend, approved by shareholders on May 30, 2025, will be paid in Hong Kong dollars at a rate of HKD 0.024 per share, with an exchange rate of RMB 1 to HKD 1.077. The ex-dividend date is set for June 9, 2025, and the payment date is June 30, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may enhance its attractiveness to investors.

China Risun Group Announces Major Disposal and Acquisition Transaction
May 18, 2025

China Risun Group Ltd. has announced a significant transaction involving the disposal of equity interests in a target company to Binhai Energy in exchange for consideration shares. This transaction, which includes both a substantial disposal and acquisition, will result in Binhai Energy becoming a subsidiary of Risun Group, thereby consolidating their financial statements. The transaction is subject to various regulatory approvals under the Hong Kong Stock Exchange’s Listing Rules, and further announcements will be made as details are finalized.

China Risun Group Announces Potential Strategic Partnership with Binhai Energy
Apr 29, 2025

China Risun Group Limited has announced a non-legally binding cooperation intention agreement with several partners, including Shenzhen Venture Capital and Agricultural Bank Assets, to dispose of their equity interests in Cangzhou Risun Chemicals Limited to Binhai Energy. This potential transaction aims to integrate Risun’s chemical nylon new materials business with Binhai Energy’s new energy materials business, leveraging research and development strengths to enhance the new materials industrial chain. If completed, the transaction could lead to a change in the controlling shareholder of Binhai Energy, positioning Risun Group as a significant player in the new materials industry.

China Risun Group Announces Special Dividend Update
Apr 29, 2025

China Risun Group Limited has announced an update regarding its cash dividend for equity issuers. The company declared a special dividend of RMB 0.0222 per share for the financial year ending December 31, 2024, with the payment to be made in HKD at an exchange rate of RMB 1 to HKD 1.077. The shareholders’ approval is set for May 30, 2025, with the ex-dividend date on June 9, 2025, and the payment date on June 30, 2025.

China Risun Group Ltd. Announces 2025 AGM and Key Resolutions
Apr 29, 2025

China Risun Group Ltd. has announced its upcoming annual general meeting scheduled for May 30, 2025, where several key resolutions will be considered. These include the approval of the 2024 financial statements, re-election of directors, and the declaration of a special dividend. The meeting will also address the re-appointment of Deloitte Touche Tohmatsu as the external auditor and authorize the board to manage directors’ remuneration and share allotment, reflecting the company’s strategic focus on governance and shareholder value.

China Risun Group Clarifies Share Repurchase Disclosure
Apr 8, 2025

China Risun Group Limited has issued a clarification regarding an error in their previous disclosure about share repurchases. The company clarified that there was no repurchase of shares on March 31, 2025, as previously reported, but rather a purchase of 930,000 shares by its controlling shareholder. Additionally, the company corrected the total number of shares repurchased since the 2024 annual general meeting and the number of shares available for repurchase under the 2024 Share Repurchase Mandate. These adjustments ensure compliance with the company’s articles of association and relevant regulations.

China Risun Group Announces Share Repurchase Plan
Apr 7, 2025

China Risun Group Limited has announced its intention to conduct an on-market share repurchase, following a mandate approved by shareholders to repurchase up to 10% of its issued shares. The board believes this move demonstrates confidence in the company’s business prospects and aligns with long-term development strategies, although the repurchase is subject to market conditions and the board’s discretion.

China Risun Group Reports 2024 Financial Results with Revenue Growth but Profit Decline
Mar 28, 2025

China Risun Group Limited announced its audited annual results for the year ending December 31, 2024, reporting a revenue increase of 3.2% to RMB47,542.7 million. However, the profit attributable to owners of the company saw a significant decline of 97.7% year-on-year, amounting to RMB20.1 million. The board has proposed a special dividend of RMB2.22 cents per share in celebration of the company’s 30th anniversary, despite not proposing a final dividend for the year. The total dividend per share, including the interim and special dividends, will be RMB3 cents per share. This announcement reflects a challenging financial year for the company, with implications for stakeholders regarding dividend expectations and financial performance.

China Risun Group Announces Special Dividend for 2024
Mar 28, 2025

China Risun Group Limited has announced a special cash dividend of RMB 0.0222 per share for the financial year ending December 31, 2024. The payment date for this dividend is set for June 30, 2025, with further details on currency exchange rates and shareholder approval to be announced. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

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: Jun 24, 2025