Natural Beauty Bio-Technology (0157) AI Stock Analysis

• Market Cap: HK$961.01M
• Dividend Yield: N/A
• Average Volume (3M): 13.87K
• Price to Earnings (P/E): 92.7
• Beta (1Y): 0.03
• Revenue Growth: 39.29%
• EPS Growth: -71.82%
• Country: HK
• Employees: 542
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.00
• Shares Outstanding: 2,002,101,000
• 10 Day Avg. Volume: 16,600
• 30 Day Avg. Volume: 13,866
• PEG Ratio: -0.84
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 1.82
• P/FCF Ratio: -10.45
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$0.48 ▼(-3.06% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is primarily held back by persistent negative operating/free cash flow despite the 2025 earnings rebound, alongside a high P/E valuation. Technical indicators are only mildly supportive, with mixed momentum and a generally weak longer-term trend versus key moving averages.

Positive Factors

Branded consumables model

Natural Beauty's core business is branded skincare and cosmetics sold through multi-channel distribution and consultant networks. That consumable product model supports recurring purchases and customer retention, giving a durable revenue base less dependent on one-off sales or fleeting trends.

Revenue rebound and return to profit

A 16.8% revenue rebound and restored profitability in 2025 show the company can recover demand and operationally scale its portfolio. This demonstrates structural resilience in the underlying business and the potential to regain operating leverage if growth continues and cost discipline is maintained.

Serviceable balance sheet buffer

The balance sheet retains a meaningful equity buffer and leverage that, while increasing, is still within a manageable range. That financial flexibility supports working-capital needs and gives room to fund recovery or strategic initiatives without immediate distress, provided cash generation stabilizes.

Negative Factors

Persistent negative cash flow

Despite accounting profits in 2025, the company continues to burn cash with negative operating and free cash flow, a multi-year pattern. Persistent cash deficits force reliance on external financing or asset sales, increase refinancing risk, and limit capacity to invest in marketing, R&D, or distributor incentives over the medium term.

Thin and volatile margins

Operating profitability remains thin and has been volatile over several years, reducing the company's ability to absorb cost inflation or competitive price pressure. Low margins constrain reinvestment, depress returns on capital, and mean growth may not translate into materially higher earnings without sustained margin improvement.

Rising leverage trend

The steady increase in debt-to-equity over recent years raises the company's financial risk profile. Higher leverage elevates interest and refinancing pressures, reduces buffer against cash-flow shocks, and limits strategic flexibility if operating cash continues to lag, making funding more conditional on market access.

Natural Beauty Bio-Technology Business Overview & Revenue Model

Company Description

Natural Beauty Bio-Technology Limited, an investment holding company, offers skin care products and services in in the People's Republic of China, Taiwan, and internationally. The company manufactures and sells skin care, beauty, aroma-therapeutic, cosmetics, health supplements, and make-up products under the Natural Beauty brand. It also offers skin treatment, beauty and spa, medical cosmetology, skin care consulting, and beauty consulting and training services. In addition, the company's spas provide hydrotherapy, facial treatment, body care, and skin care analysis services. Further, it engages in the wholesale of skin care and beauty products. The company was founded in 1976 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

Natural Beauty Bio-Technology primarily makes money by selling branded beauty and skincare products. Revenue is generated from (1) product sales through its distribution network, including direct selling/beauty consultants and other sales channels used by the group, and (2) sales via retail or customer-facing outlets where applicable. Earnings are influenced by the company’s ability to develop and market its proprietary product lines, maintain and expand its distributor/consultant network, and drive repeat customer purchases of consumable skincare and beauty products. Specific breakdowns of revenue by channel, geography, or product category and details of material partnerships are null.

Natural Beauty Bio-Technology Financial Statement Overview

Summary

Income statement rebounded in 2025 (revenue +16.78% YoY; profitability turned positive), and the balance sheet remains serviceable, but operating margins are still thin and results have been volatile. The biggest constraint is cash flow: operating cash flow and free cash flow were negative in 2025 and free cash flow has been negative in most recent years, raising sustainability and funding risk.

Income Statement

Revenue rebounded strongly in 2025 (+16.78% YoY) after a largely flat 2023–2024 period, and profitability turned positive again (net margin ~2.0% vs. deeply negative in 2024). However, earnings quality remains mixed: operating profitability is still thin (EBIT margin ~3.3% in 2025), well below the stronger 2021 profile (net margin ~7.2%, EBIT margin ~10.3%), and results have been volatile over the last four years with multiple loss-making periods.

Balance Sheet

The balance sheet is moderate: leverage is manageable but rising, with debt-to-equity increasing to ~0.67 in 2025 from ~0.47 in 2024 and ~0.20 in 2021. Equity remains sizable relative to total assets, which provides some buffer, but returns on shareholder capital are currently low (ROE ~2.2% in 2025) following a very weak 2024 (negative ROE). Overall, the company has financial flexibility, though the recent debt build reduces comfort.

Cash Flow

Cash generation is the weakest area: 2025 operating cash flow is negative (-25.7M) and free cash flow is materially negative (-93.9M), continuing a pattern of cash burn in most years shown (free cash flow negative in 2020, 2022, 2023, 2024, and 2025). While accounting earnings returned to positive in 2025, cash flow did not, indicating working-capital pressure and/or elevated spending needs. The inconsistency between reported profit and cash generation raises near-term funding and sustainability risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	538.83M	353.65M	336.01M	335.88M	487.81M
Gross Profit	269.54M	202.33M	200.34M	165.33M	281.80M
EBITDA	56.48M	-65.50M	22.91M	15.09M	85.23M
Net Income	10.58M	-103.61M	-15.11M	-30.47M	35.26M
Balance Sheet
Total Assets	931.55M	772.93M	882.58M	883.53M	937.16M
Cash, Cash Equivalents and Short-Term Investments	112.12M	116.51M	166.81M	168.61M	197.08M
Total Debt	319.30M	212.13M	186.29M	143.48M	129.07M
Total Liabilities	457.56M	325.34M	308.06M	286.07M	279.24M
Stockholders Equity	473.98M	447.59M	574.52M	597.46M	657.92M
Cash Flow
Free Cash Flow	-93.91M	-54.96M	-47.39M	-35.98M	4.67M
Operating Cash Flow	-25.66M	-13.75M	21.72M	8.33M	42.78M
Investing Cash Flow	-68.95M	-40.17M	-67.61M	-38.77M	-31.21M
Financing Cash Flow	84.61M	15.34M	42.63M	13.21M	10.42M

Natural Beauty Bio-Technology Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.49
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0157, the sentiment is Neutral. The current price of 0.49 is below the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.49, and below the 200-day MA of 0.52, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 63.37 is Neutral, neither overbought nor oversold. The STOCH value of 85.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0157.

Natural Beauty Bio-Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1925	74 Outperform	HK$518.45M	5.29	17.17%	8.33%	21.99%	11.36%
2177	64 Neutral	HK$414.74M	10.47	3.39%	15.24%	-9.26%	435.33%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3332	62 Neutral	HK$591.35M	6.41	4.03%	―	-0.92%	-71.88%
2145	61 Neutral	HK$23.21B	14.20	39.62%	2.53%	20.78%	18.37%
0157	48 Neutral	HK$961.01M	92.72	-12.38%	―	39.29%	-71.82%
6993	43 Neutral	HK$15.77B	-12.50	-6.34%	5.00%	2.79%	-170.67%

Natural Beauty Bio-Technology Corporate Events

Natural Beauty Bio-Technology Updates Audit Committee Charter to Meet HKEX Governance Standards

Natural Beauty Bio-Technology Limited has revised and adopted a new Audit Committee Charter, effective 10 March 2026, to align with updated corporate governance requirements of the Hong Kong Stock Exchange. The charter formalizes the committee’s role in overseeing financial reporting integrity, internal controls, risk management effectiveness and auditor independence.

The Audit Committee will be composed solely of non-executive directors, with a majority being independent non-executive directors and an independent chair, and will meet at least twice a year to review interim and annual reports. It is granted broad authority, direct access to auditors and management, dedicated resources and the power to engage external advisers, reinforcing oversight standards for investors and other stakeholders without additional remuneration for committee members.

The most recent analyst rating on (HK:0157) stock is a Sell with a HK$0.44 price target. To see the full list of analyst forecasts on Natural Beauty Bio-Technology stock, see the HK:0157 Stock Forecast page.

Natural Beauty Bio-Technology Publishes Audited 2025 Annual Results and Report

Natural Beauty Bio-Technology Limited has released its audited annual results for the year ended 31 December 2025, fulfilling Hong Kong listing requirements for preliminary annual results disclosure. The full 2025 annual report, including financial statements, management discussion, corporate governance report and auditor’s opinion, is now available online and will be distributed in printed form to shareholders who have opted for hard copies around mid-March 2026.

The announcement underscores the company’s adherence to regulatory transparency and corporate governance standards as it publishes comprehensive audited financial information. By providing timely access to detailed results and governance disclosures, the group aims to inform investors and other stakeholders, potentially supporting market confidence and facilitating more informed assessment of its performance and board oversight.

The most recent analyst rating on (HK:0157) stock is a Sell with a HK$0.44 price target. To see the full list of analyst forecasts on Natural Beauty Bio-Technology stock, see the HK:0157 Stock Forecast page.

Natural Beauty Bio-Technology Sets March Board Meeting for 2025 Results

Natural Beauty Bio-Technology Limited has scheduled a board meeting for 9 March 2026 to review and approve its audited final results for the financial year ended 31 December 2025. The board will also consider recommending a final dividend, signaling a key decision point for shareholder returns and providing investors with a forthcoming update on the company’s financial performance and capital allocation priorities.

The most recent analyst rating on (HK:0157) stock is a Sell with a HK$0.44 price target. To see the full list of analyst forecasts on Natural Beauty Bio-Technology stock, see the HK:0157 Stock Forecast page.

Natural Beauty Bio-Technology Flags Return to Profit on Surging Mainland China Sales

Natural Beauty Bio-Technology has issued a positive profit alert, indicating that its unaudited revenue for the year ended 31 December 2025 is expected to rise to approximately HK$530 million to HK$540 million, up about 50% to 53% from HK$353.6 million a year earlier. The group anticipates a turnaround to a net profit of about HK$8 million to HK$10 million for 2025, compared with a net loss of HK$103.6 million in 2024, driven mainly by strong revenue growth in Mainland China — where sales are projected to jump roughly 72% to 76% to HK$440 million to HK$450 million — and by tighter cost control and improved operational efficiency; however, the figures are based on unaudited management accounts and may be adjusted when full annual results are released by March 2026, prompting the company to urge investors to exercise caution.

The most recent analyst rating on (HK:0157) stock is a Sell with a HK$0.44 price target. To see the full list of analyst forecasts on Natural Beauty Bio-Technology stock, see the HK:0157 Stock Forecast page.

Natural Beauty Bio-Technology Shareholders Unanimously Approve New Incentive Schemes

Natural Beauty Bio-Technology Limited announced that all resolutions put to shareholders at its extraordinary general meeting on 19 December 2025 in Taipei were approved by poll with 100% of votes cast in favour. The measures included adoption of a new 2025 share option scheme, an amended and restated share award scheme, and related mandate limits and service provider sublimits, signalling the company’s intention to strengthen its long-term incentive framework and align management, employees and service providers more closely with shareholder interests, without any noted shareholder opposition or required voting abstentions.

The most recent analyst rating on (HK:0157) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Natural Beauty Bio-Technology stock, see the HK:0157 Stock Forecast page.