China PengFei Group Limited (3348) AI Stock Analysis

• Market Cap: HK$545.00M
• Dividend Yield: 4.01%
• Average Volume (3M): 98.73K
• Price to Earnings (P/E): 6.5
• Beta (1Y): -0.07
• Revenue Growth: -21.28%
• EPS Growth: -29.40%
• Country: HK
• Employees: 1,030
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.09
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 88,000
• 30 Day Avg. Volume: 98,733
• PEG Ratio: -0.14
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 1.38
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: HK$1.00 ▼(-8.26% Downside)

The stock's overall score is driven by its strong valuation metrics, suggesting potential undervaluation and attractive dividend yield. However, financial performance concerns, particularly in cash flow and profitability, weigh on the score. Technical analysis indicates moderate bullish momentum, but not enough to offset financial weaknesses.

China PengFei Group Limited Business Overview & Revenue Model

Company Description

China PengFei Group Limited manufactures and installs rotary kilns and grinding equipment, and related equipment in the People's Republic of China and internationally. It offers rotary kilns, preheaters, dryers, coolers, and control systems; tube and vertical roller mills, roller presses, crushers, and dust collectors; and spare parts for ball and vertical mills, and rotary kilns. The company also provides production line construction services comprising design, procurement, construction, and/or trial operations of production lines; manufactures building materials; and leases property and equipment. It serves customers in building materials production, metallurgy, chemical, and environmental protection industries. The company was founded in 1994 and is headquartered in Haian, the People's Republic of China.

How the Company Makes Money

China PengFei Group Limited generates revenue primarily through the manufacturing and sale of industrial equipment, including rotary kilns and grinding machinery, which are essential components in the production processes of cement, chemicals, and metallurgy. The company capitalizes on its expertise in industrial engineering to offer customized machinery solutions, thereby attracting a diverse clientele from various sectors. Additionally, the company may engage in strategic partnerships and collaborations to enhance its technological capabilities and expand its market reach, contributing to its earnings. However, specific data on partnerships or detailed financial breakdowns is not available.

China PengFei Group Limited Financial Statement Overview

Summary

The company's financial performance is mixed. The income statement shows declining profitability and efficiency, with reduced margins. The balance sheet is strong, with low leverage and solid equity, but cash flow issues are concerning, indicating potential liquidity challenges.

Income Statement

The company has shown fluctuating revenue figures with a notable decline in the latest year. Gross profit margin and net profit margin have decreased, indicating potential issues with cost control or pricing power. The EBIT and EBITDA margins have also declined, suggesting reduced operational efficiency.

Balance Sheet

The company maintains a strong equity position with a low debt-to-equity ratio, indicating financial stability. The equity ratio remains healthy, reflecting a solid reliance on equity financing. Return on equity has decreased due to lower net income, but the company's balance sheet remains strong.

Cash Flow

Cash flow performance is concerning with zero operating and free cash flow in the latest year, suggesting potential liquidity issues. Previous years showed positive free cash flow, but the downturn indicates possible challenges in cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.26B	1.73B	1.59B	1.83B	1.57B
Gross Profit	249.94M	374.56M	288.54M	303.04M	308.60M
EBITDA	55.66M	149.03M	123.47M	130.06M	125.31M
Net Income	67.28M	142.87M	122.22M	109.23M	131.94M
Balance Sheet
Total Assets	2.70B	2.46B	3.00B	2.78B	2.64B
Cash, Cash Equivalents and Short-Term Investments	713.76M	481.99M	445.68M	594.46M	584.79M
Total Debt	1.48M	55.31M	105.41M	44.00K	59.00K
Total Liabilities	1.76B	1.55B	2.20B	2.07B	1.99B
Stockholders Equity	934.16M	909.73M	803.86M	714.64M	645.41M
Cash Flow
Free Cash Flow	378.62M	21.33M	-66.62M	84.13M	139.39M
Operating Cash Flow	387.03M	46.41M	43.98M	204.93M	192.63M
Investing Cash Flow	-110.49M	74.09M	-167.76M	-198.00M	-211.85M
Financing Cash Flow	-100.25M	-88.08M	72.25M	-40.02M	-26.83M

China PengFei Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.09
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3348, the sentiment is Neutral. The current price of 1.09 is below the 20-day moving average (MA) of 1.11, below the 50-day MA of 1.09, and above the 200-day MA of 1.05, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.37 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3348.

China PengFei Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3348	―	HK$545.00M	6.48	8.36%	4.01%	-21.28%	-29.40%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0365	―	HK$465.60M	―	-5.21%	―	18.71%	61.54%
0679	―	HK$359.02M	―	-2.06%	3.19%	-0.29%	-113.17%
1597	―	HK$637.50M	-14.26	-18.61%	―	-30.04%	-116.46%
1645	―	HK$1.51B	-78.07	-6.34%	―	-2.88%	44.39%
1673	―	HK$354.34M	―	-2.71%	―	-4.33%	55.43%

China PengFei Group Limited Corporate Events

China PengFei Group Sees Profit Growth Despite Revenue Decline in H1 2025

China PengFei Group Limited reported its interim results for the six months ending June 30, 2025, showing a revenue decrease of 9.7% to approximately RMB571.6 million compared to the previous year. Despite the drop in revenue, the company achieved a 5% increase in gross profit and a significant 26.7% rise in profit before tax, reaching approximately RMB48.4 million. The profit attributable to owners increased by 29.3% to RMB42.0 million, indicating improved operational efficiency and cost management. This performance suggests a positive impact on the company’s financial health, potentially strengthening its position in the industrial machinery market.

The most recent analyst rating on (HK:3348) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China PengFei Group Limited stock, see the HK:3348 Stock Forecast page.

China PengFei Group Schedules Board Meeting to Review Interim Results

China PengFei Group Limited has announced that its board of directors will meet on August 29, 2025, to review and approve the interim financial results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation for an interim dividend, which could have implications for the company’s financial distribution strategy and shareholder returns.

China PengFei Group’s Strategic Investment in Wealth Management

China PengFei Group Limited announced that its subsidiary, China Heavy Equipment, has subscribed to a Huatai Wealth Management Product worth HK$28,000,000. This transaction is classified as a discloseable transaction under the Hong Kong Stock Exchange Listing Rules, indicating its significance. The investment, funded by the company’s idle funds, is in a non-principal guaranteed product with a variable return, reflecting a strategic move to potentially enhance financial returns through diversified investments.