Haixin Food (002702.SZ) Operating Fundamentals and Valuation Analysis Report

Now let’s provide a detailed analysis of Haixin Food’s operating fundamentals and valuation level for you.

According to online search information, Haixin Food has indeed experienced two significant abnormal fluctuations recently [1][2]:

• Time
  : December 1 and December 2, 2025
• Situation
  : The cumulative deviation of closing price increases exceeded 20% over 2 consecutive trading days
• Company Response
  : No corrections needed for previously disclosed information; no major undisclosed information found; operating conditions are normal; controlling shareholders have no undisclosed matters that should be disclosed [1]

• Time
  : December 26, December 29, and December 30, 2025
• Situation
  : The cumulative deviation of closing price declines exceeded 20% over 3 consecutive trading days
• Company Response
  : Operating conditions are normal, and no major changes have occurred in internal and external operating environments [2]

The company’s board of directors specially reminds investors that

[1].

Chart shows: Haixin Food’s price trend over the past 3 months (October 9 to December 30), with a cumulative increase of 74.47%, a daily volatility of up to 5.68%, and 8 days with a single-day price change exceeding 10% [0]

Based on the latest trading data [0], Haixin Food shows typical

:

Time Period	Price Change	Current Price
1 Day	-5.26%	$7.38
5 Days	-16.23%	-
1 Month	+1.93%	-
3 Months	+72.83%	-
6 Months	+76.56%	-
YTD	+55.70%	-

[0]:

• Period High Price
  : 11.22 yuan (December 9), 52% higher than current price
• Period Low Price
  : 4.17 yuan (October 13), a 169% drop from the high price
• Daily Average Trading Volume
  : 0.87 billion shares, significantly increased
• Single-day price change >10%
  : 8 days, indicating extreme volatility

According to financial data analysis [0], Haixin Food’s profitability is worrying:

Profitability Indicator	Value	Evaluation
Net Profit Margin	-2.69%	Loss status
Operating Profit Margin	-2.00%	Core business loss
ROE (Return on Equity)	-3.88%	Negative value, eroding shareholder value
2025 Q3 EPS	$-0.01	Loss per share
2025 Q3 Operating Revenue	$360.48M	YoY decrease

Valuation Indicator	Value	Analysis
P/E (Price-to-Earnings Ratio)	-98.13x	Negative value , company is in loss, cannot be valued normally
P/B (Price-to-Book Ratio)	3.87x	Significantly higher than the industry’s normal level
P/S (Price-to-Sales Ratio)	2.67x	Relatively reasonable
Market Capitalization	$4.09B (approx. 28 billion RMB)	Moderate market cap size
EV/OCF	130.93x	High ratio of enterprise value to operating cash flow

:

• Negative P/E indicates the company has
  sustained losses
  , making the traditional P/E valuation method invalid
• P/B ratio of 3.87x is far higher than the usual 1-2x level in the food packaging industry
• With negative profits, the current market cap is mainly supported by
  future expectations
  , lacking fundamental support

Financial Indicator	Value	Evaluation
Current Ratio	1.27	Acceptable, short-term solvency is average
Quick Ratio	0.43	Low, high proportion of inventory in current assets
Debt Risk Rating	Low Risk	Debt risk is controllable
Financial Attitude Rating	Neutral	Balanced accounting policies

According to cash flow analysis [0], the company’s free cash flow is negative (approx. -39.23 million yuan), indicating that the company’s

at the current stage, and its capital chain status needs attention.

Three-scenario valuation based on Discounted Cash Flow (DCF) model [0]:

Scenario	Intrinsic Value	vs Current Price $7.38	Key Assumptions
Conservative Scenario	$6.41	-13.1%	0% revenue growth, EBITDA margin of 4.8%
Base Scenario	$8.43	+14.2%	1.5% revenue growth, EBITDA margin of 5.0%
Optimistic Scenario	$14.61	+98.0%	4.5% revenue growth, EBITDA margin of 5.3%

[0]:

• Current price of $7.38 is
  8.3% lower than the base scenario valuation
• But close to the
  conservative scenario valuation
  of $6.41, only 15% higher
• Probability-weighted value
  : $9.82 (+33.0% upside potential)

[0]:

• Revenue CAGR: Only 1.5% (slow growth)
• EBITDA margin: 5.0% (low level)
• Net profit margin: 0.8% (slight profit)
• Capital expenditure as % of revenue: 10.6% (high)

[0]:

• Cost of equity: 7.9%
• Cost of debt: 3.2%
• WACC:7.4%
• Beta:0.48 (low volatility, contrasting with high actual volatility)

##5. Technical Analysis

According to technical analysis report [0]:

Technical Indicator	Value	Signal
Trend Status	Sideways	No clear trend
MACD	No crossover	Bearish
KDJ	K:25.8, D:38.6, J:0.1	Bearish
RSI(14)	Oversold opportunity	-
Support Level	$6.98	-
Resistance Level	$8.91	-

: Currently in a sideways consolidation phase, with support at $6.98 and resistance at $8.91; there is a short-term rebound opportunity near the support level.

##6. Comprehensive Risk Assessment and Investment Recommendations

###1. Core Risk Warnings

Risk Category	Specific Performance	Severity
Fundamental Risk	Sustained losses, negative net profit margin, negative ROE	⚠️ High
Valuation Risk	P/B ratio of3.87x is too high, negative P/E makes valuation impossible	⚠️ High
Volatility Risk	Daily volatility of5.68%,8 days with single-day change >10%	⚠️ High
Liquidity Risk	Daily average trading volume of0.87 billion shares, liquidity is acceptable	⚡ Medium
Speculation Risk	Company clearly warns of “overheated market sentiment and irrational speculation”	⚠️ High

###2. Investment Value Assessment

:

• Company has
  sustained losses
  , with serious lack of profitability
• P/B valuation is significantly high, lacking fundamental support
• Recent stock price rise is mainly driven by
  sentiment speculation
  , not fundamental improvement
• 76.55% increase over3 months is completely divorced from the company’s fundamentals

:

• DCF base scenario valuation of$8.43 is higher than current price of$7.38 (+14.2%)
• Debt risk rating is “Low Risk”
• Neutral financial attitude, prudent accounting policies
• Short-term technicals are in oversold state

###3. Investment Recommendations

:

Investor Type	Recommendation	Reason
Value Investors	Avoid	Company is in loss, overvalued, does not meet value investment standards
Growth Investors	Cautious Watch	Slow revenue growth (1.5% CAGR), lacks growth support
Short-term Traders	Extremely High Risk	Extreme volatility, speculative market with poor risk-reward ratio
Long-term Holders	Wait for Fundamental Improvement	Need to see clear signs of company turning losses into profits

:

Haixin Food’s current stock price rise lacks fundamental support and is mainly driven by market sentiment and speculative funds. Although the company clarifies that no major changes have occurred in its operating environment [1][2], its operating fundamentals remain weak—sustained losses, overvaluation, and lack of growth momentum.

• Short-term
  : Stock price may continue to fluctuate sharply, with technical support near $6.98
• Medium-term
  : Unless the company turns losses into profits, the stock price lacks sustained upward momentum
• Long-term
  : Investors should focus on fundamental indicators such as improvement in profitability and recovery of revenue growth

:

1. Whether to turn losses into profits
   : Net profit margin turning positive is a key turning point
2. Revenue growth
   : Needs to recover to over5% to have growth potential
3. Valuation regression
   : P/B ratio dropping below2x to have a margin of safety
4. Trading volume changes
   : Alert to capital withdrawal when volume shrinks after abnormal increase

Special Note

: Given the company’s sustained losses and significantly high P/B ratio, the current stock price faces a high risk of correction. Investors should focus on whether the company can improve its profitability in the future, rather than chasing short-term speculative trends.

[0] Gilin API Data - Haixin Food (002702.SZ) Company Overview, Financial Data, Valuation Analysis, Technical Analysis

[1] Eastmoney - “Haixin Food: Abnormal Stock Trading Fluctuations” (December2,2025)
https://finance.eastmoney.com/a/202512023580443322.html

[2] Sohu Finance - “Haixin Food: Company’s Recent Operating Conditions Are Normal, No Major Changes in Internal and External Operating Environments” (December30,2025)
https://m.sohu.com/a/970943686_313745