China Boton Group Co., Ltd. (3318) AI Stock Analysis

China Boton Group Co., Ltd.

(HKEX:3318)

Select Model

Rating:50Neutral

Price Target:HKD 3.00▲(4.35% Upside)

Action:reiterated

Date:09/27/26

The overall score reflects materially deteriorated financial performance and higher balance-sheet risk as the dominant factor, partly offset by strong but stretched price momentum, while a loss-making, non-income-focused valuation keeps the stock in a higher-risk, turnaround category rather than a high-quality investment.

Positive Factors

Revenue ReboundThe 2025 revenue rebound indicates that demand for the company’s flavor and fragrance products remains present despite recent operating pressure. If sustained, renewed sales growth can improve fixed-cost absorption, support customer relationships, and provide a foundation for restoring profitability.

Negative Factors

Severe Profitability DeteriorationThe sharp margin contraction and very large net loss indicate that revenue growth is not currently translating into economic value. Persistently weaker profitability could reduce internally funded investment, weaken resilience, and make a durable earnings recovery dependent on meaningful cost or pricing improvement.

China Boton Group Co., Ltd. (3318) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 3.12B
Dividend Yield: ―
Average Volume (3M): 575.10K
Price to Earnings (P/E): -2.5
Beta (1Y): 0.33
Revenue Growth: 11.19%
EPS Growth: -3035.78%
Country: Hong Kong
Employees: 1,413
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

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 mainlan...

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 through s...

China Boton Group Co., Ltd. Financial Statement Overview

Summary

Financial performance is weak: revenue has fallen from prior peaks, margins have compressed, 2025 shows a very large net loss, leverage has increased, and free cash flow turned negative, partially offset by a history of past profitability and still-positive operating cash flow and equity.

Income Statement

24Negative

Balance Sheet

33Negative

Cash Flow

29Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.98B	1.50B	1.65B	2.06B	2.32B	2.29B
Gross Profit	511.07M	377.10M	597.91M	798.11M	786.86M	892.34M
EBITDA	110.54M	87.06M	333.30M	384.14M	304.83M	493.93M
Net Income	-1.05B	-1.03B	18.38M	146.37M	48.32M	183.51M
Balance Sheet
Total Assets	6.77B	6.80B	6.30B	6.01B	6.45B	6.31B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.81B	404.21M	407.18M	445.40M	531.86M
Total Debt	1.21B	2.25B	1.90B	1.56B	1.68B	1.41B
Total Liabilities	4.36B	4.38B	2.89B	2.63B	3.19B	3.14B
Stockholders Equity	2.02B	2.10B	3.14B	3.13B	2.98B	2.91B
Cash Flow
Free Cash Flow	-146.64M	-272.63M	-338.06M	53.73M	-40.25M	164.04M
Operating Cash Flow	56.52M	95.88M	188.69M	214.41M	129.75M	277.23M
Investing Cash Flow	2.06B	-446.15M	-587.44M	-196.78M	-217.58M	-107.71M
Financing Cash Flow	-927.24M	352.74M	330.57M	-102.17M	186.59M	-97.11M

China Boton Group Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price2.88

Price Trends

50DMA3.04Negative

100DMA2.80Positive

200DMA2.20Positive

Market Momentum

MACD-0.01Positive

RSI37.70Neutral

STOCH23.83Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3318, the sentiment is Neutral. The current price of 2.88 is below the 20-day moving average (MA) of 3.07, below the 50-day MA of 3.04, and above the 200-day MA of 2.20, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 37.70 is Neutral, neither overbought nor oversold. The STOCH value of 23.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3318.

China Boton Group Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:3318 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:0408	62Neutral	HKD 1.46B	6.82	5.15%	7.72%	6.66%	65.39%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HK:0336	61Neutral	HKD 9.95B	-20.41	-3.56%	0.39%	13.49%	-34.73%
HK:0546	52Neutral	HKD 9.98B	0.24	5.20%	4.10%	1.18%	-65.68%
HK:2502	51Neutral	HKD 852.91M	18.30	2.33%	―	-4.75%	―
HK:3318	50Neutral	HKD 3.12B	-2.50	-51.09%	―	11.19%	-3035.78%
HK:0301	43Neutral	HKD 3.58B	-191.54	-8.09%	―	3.15%	50.74%

* Basic Materials Sector Average

Performance Comparison

HK:3318 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:3318	China Boton Group Co., Ltd.	2.88	1.14	65.80%
HK:0336	Huabao International Holdings	3.09	-0.41	-11.59%
HK:0408	Yip's Chemical Holdings	2.59	0.75	40.61%
HK:0546	Fufeng Group Limited	3.98	-3.95	-49.79%
HK:0301	SANVO Fine Chemicals Group Limited	7.60	6.29	480.15%
HK:2502	Henan Jinyuan Hydrogenated Chemicals Co., Ltd. Class H	0.51	0.11	27.50%

China Boton Group Co., Ltd. Corporate Events

China Boton Group Shifts Hong Kong Share Registrar to Boardroom

Oct 30, 2026

China Boton Group Company Limited, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, relies on a Hong Kong branch share registrar to handle share registration and transfer for its investor base. Its board includes both ex...

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 substantia...

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, signali...

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 01, 2026

China Boton Group Co., Ltd. AI Stock Analysis