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China Boton Group Co., Ltd.
(3318)
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Rating:49Neutral
Price Target:
HK$2.50
▲(38.89% Upside)
Action:Reiterated
Date:07/01/26
The score is held back primarily by weak financial performance—margin collapse, a very large net loss, and multi-year negative free cash flow—despite moderate and improving leverage. Technicals provide meaningful support as the stock trades above its 20/50/100/200-day moving averages, but valuation remains challenged due to loss-making earnings (negative P/E).
Positive Factors
Revenue rebound
The 2025 revenue rebound indicates that demand for the company’s flavor and fragrance products recovered meaningfully. Continued top-line growth could support operating leverage and customer retention, although the business must convert that sales momentum into healthier margins and cash generation.
Negative Factors
Severe margin deterioration
The sharp gross-margin contraction and move to a very large net loss indicate that recent revenue growth is not translating into economic profits. Persistent margin pressure would weaken reinvestment capacity, reduce resilience, and make earnings recovery dependent on a substantial operating improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound
The 2025 revenue rebound indicates that demand for the company’s flavor and fragrance products recovered meaningfully. Continued top-line growth could support operating leverage and customer retention, although the business must convert that sales momentum into healthier margins and cash generation.
Read all positive factors
China Boton Group Co., Ltd. (3318) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$3.22B
Dividend Yield1.64%
Average Volume (3M)295.92K
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth11.19%
EPS Growth-3035.78%
CountryHK
Employees1,413
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.95
Shares Outstanding1,080,512,200
10 Day Avg. Volume333,400
30 Day Avg. Volume295,917
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.80
Price to Sales (P/S)1.12
P/FCF Ratio-6.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)HK$2.85B
China Boton Group Co., Ltd. Business Overview & Revenue Model
Company Description
China Boton Group Company Limited, along with its affiliated entities, specializes in the creation, manufacturing, distribution, and sale of a diverse array of extracts, flavorings, and fragrances. Its operations extend globally, encompassing main...
How the Company Makes Money
China Boton Group primarily makes money by selling flavor and fragrance products to business customers. Its core revenue comes from (1) sales of fragrance compounds/formulations and related aroma products, where the company generates income throug...
China Boton Group Co., Ltd. Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
55
Neutral
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.50B | 1.65B | 2.06B | 2.32B | 2.29B |
| Gross Profit | 377.10M | 597.91M | 798.11M | 786.86M | 892.34M |
| EBITDA | 73.75M | 333.30M | 384.14M | 304.83M | 493.93M |
| Net Income | -1.03B | 18.38M | 146.37M | 48.32M | 183.51M |
Balance Sheet | |||||
| Total Assets | 6.80B | 6.30B | 6.01B | 6.45B | 6.31B |
| Cash, Cash Equivalents and Short-Term Investments | 1.81B | 404.21M | 407.18M | 445.40M | 531.86M |
| Total Debt | 2.25B | 1.90B | 1.56B | 1.68B | 1.41B |
| Total Liabilities | 4.38B | 2.89B | 2.63B | 3.19B | 3.14B |
| Stockholders Equity | 2.10B | 3.14B | 3.13B | 2.98B | 2.91B |
Cash Flow | |||||
| Free Cash Flow | -272.63M | -338.06M | 53.73M | -40.25M | 164.04M |
| Operating Cash Flow | 95.88M | 188.69M | 214.41M | 129.75M | 277.23M |
| Investing Cash Flow | -446.15M | -587.44M | -196.78M | -217.58M | -107.71M |
| Financing Cash Flow | 352.74M | 330.57M | -102.17M | 186.59M | -97.11M |
China Boton Group Co., Ltd. Technical Analysis
Positive
1.80
Price Trends
2.66
Positive
2.15
Positive
1.95
Positive
Market Momentum
0.11
Negative
78.41
Negative
87.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3318, the sentiment is Positive. The current price of 1.8 is below the 20-day moving average (MA) of 2.69, below the 50-day MA of 2.66, and below the 200-day MA of 1.95, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 78.41 is Negative, neither overbought nor oversold. The STOCH value of 87.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3318.
China Boton Group Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | HK$1.47B | 7.00 | 5.15% | 6.02% | 6.66% | 65.39% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | HK$12.00B | 0.30 | 5.20% | 7.34% | 1.18% | 1119.31% | |
57 Neutral | HK$10.33B | -21.16 | -3.56% | 0.37% | 13.49% | -34.73% | |
49 Neutral | HK$3.22B | -2.65 | -51.09% | 1.64% | 11.19% | -3035.78% | |
49 Neutral | HK$995.06M | 21.76 | 2.33% | 3.05% | -4.75% | ― | |
45 Neutral | HK$3.30B | -176.98 | -8.09% | 2.18% | 3.15% | 50.74% |
* Basic Materials Sector Average
HK:3318
China Boton Group Co., Ltd.
3.03
1.07
54.59%
HK:0336
Huabao International Holdings
3.17
-1.31
-29.30%
HK:0408
Yip's Chemical Holdings
2.66
0.94
54.92%
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Fufeng Group Limited
4.80
-4.14
-46.31%
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SANVO Fine Chemicals Group Limited
6.95
5.67
442.97%
HK:2502
Henan Jinyuan Hydrogenated Chemicals Co., Ltd. Class H
0.60
0.18
42.86%
China Boton Group Co., Ltd. Corporate Events
China Boton Posts Stable Assets but Shifts Liquidity and Capital Mix in 2026 Interim Results
Aug 28, 2026
China Boton Group Company Limited reported its unaudited interim condensed consolidated financial position for the six months ended 30 June 2026, showing total assets of RMB6.77 billion, broadly stable against year-end 2025, underpinned by substan...
China Boton Schedules Board Meeting to Review 2026 Interim Results
Aug 17, 2026
China Boton Group 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 potential declaration of an interim dividend, sign...
China Boton Details Valuation And Vendor Independence In PRC Acquisition
Jul 8, 2026
China Boton Group Co., Ltd. has issued a supplemental announcement providing further details on its acquisition of 100% equity interests in a PRC company, clarifying the identity of the vendor and confirming that both the vendor and its ultimate b...
China Boton to Acquire Shanghai Company in RMB240 Million Discloseable Deal
Jun 30, 2026
China Boton Group Co., Ltd., through an indirect wholly owned PRC subsidiary, has agreed to acquire 100% of a Shanghai-based target company from an independent vendor, paying RMB240 million in cash in three instalments. The deal, valued with refer...
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.