China Aluminum Cans Holdings Ltd. (6898) AI Stock Analysis

• Market Cap: HK$564.44M
• Dividend Yield: 0.96%
• Average Volume (3M): 21.13K
• Price to Earnings (P/E): 30.6
• Beta (1Y): -0.39
• Revenue Growth: -3.27%
• EPS Growth: -16.88%
• Country: HK
• Employees: 269
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Packaging & Containers
• EPS (TTM): 0.02
• Shares Outstanding: 956,675,000
• 10 Day Avg. Volume: 24,200
• 30 Day Avg. Volume: 21,133
• PEG Ratio: 1.29
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.78
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ―

China Aluminum Cans Holdings Ltd. exhibits a stable financial foundation with a strong balance sheet and consistent profitability, though recent revenue declines and lack of cash flow data present challenges. Technical indicators show positive short-term momentum but suggest caution due to overbought signals. Valuation metrics indicate the stock may be overvalued at current levels, limiting upside potential unless earnings grow. The absence of new earnings call insights or corporate events leaves existing data as the primary basis for evaluation.

China Aluminum Cans Holdings Ltd. Business Overview & Revenue Model

Company Description

China Aluminum Cans Holdings Ltd. (6898) is a leading manufacturer of aluminum aerosol cans based in China. The company specializes in the production and distribution of high-quality aluminum packaging solutions primarily used in personal care, household care, and pharmaceutical products. With a strong focus on innovation and sustainability, China Aluminum Cans Holdings Ltd. serves a diverse clientele, including prominent international and domestic brands.

How the Company Makes Money

China Aluminum Cans Holdings Ltd. generates revenue through the manufacturing and sale of aluminum aerosol cans. The company's primary revenue stream comes from supplying these cans to various industries such as personal care, where they are used for products like deodorants and hair sprays, household care for items like air fresheners, and pharmaceuticals for medicinal sprays. By securing long-term contracts and partnerships with major consumer goods companies, the company ensures a steady flow of income. Additionally, its focus on high-quality production processes and sustainable practices allows it to command a premium price for its products, further enhancing profitability.

China Aluminum Cans Holdings Ltd. Financial Statement Overview

Summary

Overall, China Aluminum Cans Holdings Ltd. presents a mixed financial picture. The income statement reflects stable profitability despite a recent revenue decline. The balance sheet is strong, with low leverage and a high equity ratio, indicating financial stability. However, the cash flow section raises concerns due to missing recent data, suggesting potential issues in cash generation or reporting. The company needs to address the revenue decline and cash flow transparency to improve its financial outlook.

Income Statement

The company has maintained a stable gross profit margin and net profit margin in recent years, with a slight decline in revenue over the last year. The gross profit margin has fluctuated around 26-31%, indicating a fairly stable profitability on sales. The net profit margin remained reasonably stable, suggesting efficient cost management. However, revenue declined by 3.27% in 2023, which is a point of concern. EBIT and EBITDA margins are also consistent at around 9-15%, indicating decent operational efficiency.

Balance Sheet

The company has a strong equity position with an increasing equity ratio over time, which is now at 89.47%. The debt-to-equity ratio is extremely low, indicating very low financial leverage and minimal risk from debt obligations. Return on equity has been slightly variable but maintains a decent rate, reflecting a reasonable return on shareholders' investments. The overall balance sheet position is strong, with low liabilities relative to assets.

Cash Flow

The cash flow situation shows some concerns due to recent volatility. Operating cash flow has been positive in prior years, but the absence of reported free cash flow and operating cash flow data in the latest period is a concern. Previously, free cash flow to net income and operating cash flow to net income ratios were strong, indicating efficient cash generation relative to earnings. However, the lack of current data limits a comprehensive analysis.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
227.80M	235.51M	210.51M	208.90M	183.92M
	Gross Profit
60.82M	69.60M	54.46M	56.62M	65.11M
	EBIT
20.56M	28.31M	21.46M	19.93M	29.42M
	EBITDA
41.88M	47.16M	43.47M	41.63M	49.43M
	Net Income Common Stockholders
18.37M	21.46M	20.51M	18.10M	21.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.93M	64.91M	112.79M	95.38M	102.52M
	Total Assets
283.02M	343.04M	393.38M	404.90M	395.84M
	Total Debt
224.00K	189.00K	513.00K	547.00K	12.35M
	Net Debt
-30.40M	-39.31M	-112.28M	-94.83M	-90.17M
	Total Liabilities
26.07M	26.04M	31.06M	29.14M	42.19M
	Stockholders Equity
253.19M	95.86M	357.25M	370.65M	349.00M
Cash Flow		Free Cash Flow
30.64M	35.18M	24.87M	6.69M	40.25M
	Operating Cash Flow
35.97M	38.19M	36.88M	29.45M	52.75M
	Investing Cash Flow
0.00	-49.19M	-10.13M	-21.07M	-11.96M
	Financing Cash Flow
-74.18M	-57.50M	-5.58M	-19.13M	5.25M

China Aluminum Cans Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6898, the sentiment is Positive. The current price of 0.59 is above the 20-day moving average (MA) of 0.55, above the 50-day MA of 0.53, and above the 200-day MA of 0.58, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 60.08 is Neutral, neither overbought nor oversold. The STOCH value of 83.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6898.

China Aluminum Cans Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2600	80 Outperform	$120.23B	6.54	20.63%	3.45%	2.84%	―
1330	74 Outperform	€9.71B	9.51	7.85%	4.43%	-9.43%	4.26%
6898	64 Neutral	HK$564.44M	30.57	17.56%	0.96%	-3.27%	-16.88%
Sector *	62 Neutral	$6.80B	11.04	2.79%	4.42%	2.67%	-25.07%
1060	58 Neutral	HK$29.58B	71.64	2.29%	―	24.36%	-18.99%
2383	40 Neutral	$1.80B	―		―	-4.77%	-15.54%

China Aluminum Cans Holdings Ltd. Corporate Events

China Aluminum Cans Holdings Adjusts Book Closure Period for AGM

China Aluminum Cans Holdings Limited has announced a change in its book closure period for determining shareholders eligible to attend and vote at the upcoming annual general meeting. The new book closure period is set from May 13 to May 21, 2025, allowing shareholders to register their shares by May 12, 2025. This adjustment does not affect any other information previously disclosed, maintaining the company’s transparency and operational consistency.

China Aluminum Cans Holdings Updates Nomination Committee Terms

China Aluminum Cans Holdings Limited has revised the terms of reference for its Nomination Committee, which was initially adopted in 2013. The updated terms emphasize diversity and independence, requiring the committee to have at least three members, including one of a different gender, and a majority of independent non-executive directors. This revision reflects the company’s commitment to enhancing governance and ensuring diverse representation in its leadership, potentially impacting its strategic direction and stakeholder confidence.

China Aluminum Cans Holdings to Discuss Convertible Note Extension at Upcoming EGM

China Aluminum Cans Holdings Limited has announced an extraordinary general meeting to be held on May 16, 2025, to discuss and potentially approve an amendment to extend the maturity date of a significant convertible note by five years. This move, subject to approval by the Hong Kong Stock Exchange, could impact the company’s financial strategy and shareholder value by allowing more time for conversion rights to be exercised, potentially affecting share capital and market dynamics.

China Aluminum Cans Holdings Ltd. Delays Circular Despatch for Convertible Note Extension

China Aluminum Cans Holdings Ltd. announced a delay in the despatch of a circular related to a connected transaction involving the extension of the maturity date of a convertible note. The delay is due to the need for additional time to prepare and finalize certain information, with the new expected despatch date set on or before April 24, 2025.

China Aluminum Cans Holdings Limited Announces AGM and Key Resolutions

China Aluminum Cans Holdings Limited has announced its upcoming annual general meeting (AGM) scheduled for May 21, 2025, in Hong Kong. The AGM will address several key items, including the consideration of audited financial statements, the declaration of a final dividend, re-election of directors, and re-appointment of auditors. Additionally, a special resolution will be discussed to authorize the board to allot and issue shares, potentially impacting the company’s capital structure and market positioning.

China Aluminum Cans Extends Convertible Note Maturity Date

China Aluminum Cans Holdings Ltd. has announced a connected transaction involving the extension of the maturity date of a Convertible Note by five years, from May 2025 to May 2030. This extension, agreed upon with Mr. Lin, the note holder and a major shareholder, is subject to approval by independent shareholders and is considered a connected transaction under Hong Kong’s Listing Rules, necessitating further reporting and shareholder approval processes.

China Aluminum Cans Holdings Reports 2024 Financial Results

China Aluminum Cans Holdings Limited announced its consolidated financial results for the year ending December 31, 2024, reporting a decrease in revenue from HK$235,507,000 in 2023 to HK$227,796,000 in 2024. The company’s profit for the year also declined to HK$18,717,000 from HK$21,890,000 in the previous year, reflecting challenges in maintaining profit margins amid fluctuating costs and market conditions.

China Aluminum Cans Holdings Ltd. Schedules Board Meeting for Annual Results Approval

China Aluminum Cans Holdings Ltd. has announced an upcoming board meeting on March 21, 2025, to discuss and approve the audited annual results for the year ending December 31, 2024. The meeting will also consider the potential payment of a final dividend for 2024, which could impact shareholder returns and reflect the company’s financial health.

China Aluminum Cans Approves 2025 Master Supply Agreement

China Aluminum Cans Holdings Ltd. announced that the resolution related to the 2025 Master Supply Agreement was approved at the extraordinary general meeting. Despite a voting miscommunication involving Mr. Lin, the resolution passed with 100% of the votes from independent shareholders, indicating strong support for the agreement and its associated transactions.

China Aluminum Cans Holdings Ltd. Terminates Deed of Amendment for Renegotiation

China Aluminum Cans Holdings Ltd. announced the termination of a Deed of Amendment with Mr. Lin to allow more time for renegotiation. This decision ensures that no party will have claims against each other, indicating a strategic pause to reassess terms which could impact future agreements and stakeholder interests.

China Aluminum Cans Approves 2025 Master Supply Agreement

China Aluminum Cans Holdings Ltd. announced that the resolution regarding the 2025 Master Supply Agreement was approved at their Extraordinary General Meeting. The approval allows the company to proceed with the agreement, which is expected to impact their operations positively by facilitating future transactions and business activities.

China Aluminum Cans Extends Convertible Note Maturity by Five Years

China Aluminum Cans Holdings Ltd. announced a connected transaction involving the extension of the maturity date of its existing Convertible Note by five years from May 2025 to May 2030. This move, involving major shareholder Mr. Lin, is subject to compliance with Hong Kong’s Listing Rules, necessitating independent shareholder approval, and aims to provide the company with more strategic financial flexibility.