Kader Holdings Co. Ltd. (0180) AI Stock Analysis

• Market Cap: HK$180.61M
• Dividend Yield: N/A
• Average Volume (3M): 65.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: -7.61%
• EPS Growth: -37.66%
• Country: HK
• Employees: 768
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -0.10
• Shares Outstanding: 950,587,950
• 10 Day Avg. Volume: 94,206
• 30 Day Avg. Volume: 65,002
• PEG Ratio: -0.01
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 21.26
• 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: 41 Neutral
• Price Target: HK$0.18 ▼(-6.32% Downside)

Kader Holdings Co. Ltd. is facing significant financial and operational challenges, reflected in its low financial performance and valuation scores. The technical analysis indicates weak market momentum, further impacting the overall stock score. The absence of positive earnings or dividend yield makes the stock less attractive to investors.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient production and pricing strategies, providing a buffer against revenue fluctuations and enhancing profitability potential.

Moderate Leverage

Moderate leverage suggests a balanced approach to financing, allowing the company to potentially access additional funding if needed without excessive risk.

Stable Equity Base

A stable equity base provides financial resilience, supporting the company's ability to withstand economic downturns and invest in growth opportunities.

Negative Factors

Declining Revenue

Declining revenue indicates potential market share loss or reduced demand, challenging the company's ability to sustain operations and invest in growth.

Significant Net Losses

Persistent net losses undermine financial stability, limiting reinvestment capabilities and increasing reliance on external funding for operations.

Weak Cash Flow Position

Weak cash flow limits the company's ability to fund operations and growth initiatives internally, increasing dependence on external financing.

Kader Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

Kader Holdings Company Limited, an investment holding company, manufactures, trades in, and sells plastic, electronic, and stuffed toys and model trains in Hong Kong, Mainland China, North America, Europe, and internationally. It operates through three segments: Toys and Model Trains, Property Investment, and Investment Holding. The company produces and sells model train locomotives; other hobby items comprising electronic slot racing cars and digital controls, as well as accessories, such as scenery, promotional cars, and trucks; and scale locomotives, coach cars, rolling stockcars, cabooses, and other accessories under the Bachmann brand. It also provides original design manufacture services in model railroads; offers engineering and design solutions comprising product design and development, mould design and development, and electronic and production process engineering; designs and manufactures plush and educational toys for babies under the Tinco brand; and provides a range of original equipment manufacturing services. In addition, the company leases office premises and industrial buildings; and invests in and develops properties. Further, it invests in securities; provides management services; and manufactures and sells moulds, as well as operates as an agent for sale of toys. Additionally, the company engages in sub-letting a wine cellar. Kader Holdings Company Limited was founded in 1948 and is headquartered in Kowloon Bay, Hong Kong.

How the Company Makes Money

Kader Holdings generates revenue through multiple streams, primarily from the sale of its toy products to retailers and wholesalers worldwide. The company's revenue model is centered on bulk sales of toys to large retail chains, which account for a significant portion of its earnings. Additionally, Kader has established partnerships with various global toy brands, allowing it to manufacture licensed products that contribute to its revenue. The company also benefits from seasonal sales during holidays and special events, which drive higher demand for its toy offerings. Furthermore, Kader invests in research and development to create new and appealing toy lines, aiming to capture market share and increase sales volumes.

Kader Holdings Co. Ltd. Financial Statement Overview

Summary

Kader Holdings Co. Ltd. faces significant financial challenges, with declining revenue and profitability. The income statement shows a negative growth rate and substantial net losses. The balance sheet is moderately leveraged, but the lack of positive cash flow raises concerns about liquidity and operational sustainability.

Income Statement

Kader Holdings Co. Ltd. shows declining revenue and profitability. The revenue decreased from HKD 372.5M in 2023 to HKD 352.0M in 2024, indicating a negative growth rate. The gross profit margin is strong at 82.5%, but the company suffers from significant net losses, with a net profit margin of -53.0% in 2024. Both EBIT and EBITDA margins are negative, reflecting operational challenges.

Balance Sheet

The balance sheet of Kader Holdings Co. Ltd. reflects a relatively stable equity base with equity ratio of 68.3%. The debt-to-equity ratio is 0.36, indicating moderate leverage. However, the return on equity is concerning due to persistent net losses, presenting a risk to financial health if the trend continues.

Cash Flow

The cash flow position is weak, with zero operating and free cash flow reported in 2024. Historically, there has been volatility in cash flows, and lack of positive free cash flow raises concerns about liquidity and ability to sustain operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	367.89M	352.05M	372.54M	351.97M	397.33M	372.29M
Gross Profit	293.80M	290.38M	307.13M	314.16M	330.72M	275.17M
EBITDA	35.52M	27.96M	5.90M	-23.15M	100.33M	-24.84M
Net Income	-203.66M	-186.70M	-74.63M	-86.38M	45.94M	-110.37M
Balance Sheet
Total Assets	2.76B	2.81B	3.00B	2.95B	2.90B	2.77B
Cash, Cash Equivalents and Short-Term Investments	66.03M	52.95M	90.20M	91.39M	101.27M	108.01M
Total Debt	718.44M	692.29M	684.69M	555.06M	420.25M	378.67M
Total Liabilities	917.74M	884.29M	881.25M	775.24M	629.72M	565.05M
Stockholders Equity	1.84B	1.92B	2.11B	2.17B	2.26B	2.20B
Cash Flow
Free Cash Flow	-2.07M	13.86M	-13.96M	-55.18M	-13.57M	38.38M
Operating Cash Flow	29.84M	39.08M	13.86M	-2.31M	55.74M	97.87M
Investing Cash Flow	-30.25M	-35.66M	-113.42M	-124.41M	-96.47M	-101.36M
Financing Cash Flow	36.34M	-33.97M	94.07M	125.45M	40.18M	-17.89M

Kader Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0180, the sentiment is Negative. The current price of 0.19 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.20, and below the 200-day MA of 0.23, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.74 is Neutral, neither overbought nor oversold. The STOCH value of 75.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0180.

Kader Holdings Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0114	66 Neutral	HK$374.78M	7.51	8.24%	8.96%	5.72%	986.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0869	59 Neutral	HK$477.90M	32.93	1.28%	13.73%	-44.36%	-93.64%
3830	52 Neutral	HK$64.00M	-7.36	-32.53%	―	-6.48%	-38.10%
1005	50 Neutral	HK$317.61M	-1.40	-37.46%	4.17%	-13.08%	-21.27%
6918	43 Neutral	HK$113.17M	-1.51	-19.89%	―	84.26%	44.41%
0180	41 Neutral	HK$180.61M	-0.90	-10.53%	―	-7.61%	-37.66%