Kasen International Holdings Ltd. (0496) AI Stock Analysis

• Market Cap: HK$789.71M
• Dividend Yield: N/A
• Average Volume (3M): 88.37K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.45
• Revenue Growth: 10.78%
• EPS Growth: -12.42%
• Country: HK
• Employees: 2,431
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Real Estate - Development
• EPS (TTM): 0.02
• Shares Outstanding: 1,836,541,400
• 10 Day Avg. Volume: 59,600
• 30 Day Avg. Volume: 88,366
• PEG Ratio: -0.97
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.59
• P/FCF Ratio: -4.52
• 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: 64 Neutral
• Price Target: HK$0.50 ▲(19.05% Upside)

Kasen International Holdings Ltd. has a solid balance sheet and reasonable valuation, which are positive factors. However, concerns about cash flow generation and neutral technical indicators slightly offset these strengths. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

The company's ability to rebound in revenue growth indicates resilience and potential for continued market expansion, enhancing its competitive position.

Operational Margins

Improved gross profit margins suggest effective cost management, which can lead to sustainable profitability and competitive pricing strategies.

Balance Sheet Health

A strong balance sheet with moderate leverage provides financial stability and flexibility for future investments and growth opportunities.

Negative Factors

Cash Flow Concerns

Lack of cash flow data indicates potential liquidity issues, which could affect the company's ability to fund operations and invest in growth.

Net Profit Margin Decline

A decline in net profit margins suggests reduced efficiency in converting revenue to profit, which may impact long-term profitability.

ROE Decline

A decrease in ROE indicates a decline in the company's ability to generate returns on equity, potentially affecting investor confidence and capital efficiency.

Kasen International Holdings Ltd. Business Overview & Revenue Model

Company Description

Kasen International Holdings Limited, an investment holding company, manufactures and sells upholstered furniture in the United States, the People's Republic of China, Europe, and internationally. It operates through Manufacturing and Trading of Upholstered Furniture, Properties Development, and Others segments. The company produces and sells sofas, dining chairs, and other furniture products; and glass fiber reinforced plastic products. It also develops properties; provides catering services; operates resorts; and provides property management and tourism resort-related services. In addition, the company engages in the operation of a restaurant and hotel, waterpark, and provision of travel-related services; wood processing activities; and trading of leather products. Kasen International Holdings Limited was founded in 1995 and is headquartered in Haining, the People's Republic of China.

How the Company Makes Money

Kasen International Holdings Ltd. generates revenue primarily through the sale of its furniture products to wholesalers, retailers, and directly to consumers. The company benefits from economies of scale due to its large-scale manufacturing capabilities, which allow it to produce furniture at competitive prices. Key revenue streams include the export of finished goods to overseas markets, particularly in North America and Europe, as well as sales within the Asian market. Additionally, partnerships with major retailers and e-commerce platforms enhance its distribution reach and contribute to its earnings. The company's ability to adapt to market trends and consumer preferences, along with its focus on quality and design, plays a significant role in driving sales and profitability.

Kasen International Holdings Ltd. Financial Statement Overview

Summary

Kasen International Holdings Ltd. shows improving revenue and operational margins, but faces challenges with net profit margins and cash flow generation. The balance sheet is strong with moderate leverage and a solid equity position. However, the absence of cash flow data for 2024 raises concerns about liquidity and cash flow management.

Income Statement

Kasen International Holdings Ltd. has shown a recovery in revenue with a growth rate of 7.20% from 2023 to 2024 after previous years of decline. Gross profit margin improved to 39.08% in 2024 from 36.54% in 2023, indicating better cost management. However, net profit margin decreased slightly from 7.36% to 6.19%, showing reduced efficiency in converting revenue to net income. The EBIT margin improved to 15.36% in 2024, reflecting better operational performance.

Balance Sheet

The company maintains a stable balance sheet with a debt-to-equity ratio of 0.23 in 2024, indicating moderate leverage. The equity ratio remains healthy at 60.45%, suggesting a strong capital structure. ROE decreased slightly to 1.67% in 2024 from 1.88% in 2023, highlighting a slight decline in profitability on equity.

Cash Flow

The absence of operating cash flow and free cash flow in 2024 raises concerns about the company's cash generation ability. The free cash flow growth rate is not calculable due to the lack of data. These factors indicate potential liquidity issues and a need for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	1.03B	956.76M	863.43M	1.51B	1.26B
Gross Profit	417.22M	400.77M	349.66M	250.55M	559.57M	419.50M
EBITDA	229.04M	213.64M	237.63M	44.05M	284.83M	183.40M
Net Income	58.30M	63.53M	70.43M	68.28M	220.04M	114.97M
Balance Sheet
Total Assets	6.49B	6.29B	5.98B	5.82B	5.97B	6.28B
Cash, Cash Equivalents and Short-Term Investments	187.19M	301.69M	567.54M	460.31M	279.57M	324.03M
Total Debt	712.94M	866.90M	759.21M	821.52M	846.68M	939.92M
Total Liabilities	2.28B	2.26B	2.17B	2.11B	2.32B	2.84B
Stockholders Equity	3.96B	3.80B	3.75B	3.68B	3.62B	3.40B
Cash Flow
Free Cash Flow	-236.92M	-134.30M	224.35M	37.46M	-31.68M	56.32M
Operating Cash Flow	79.38M	35.27M	273.13M	45.47M	84.05M	163.87M
Investing Cash Flow	-117.17M	-113.74M	38.67M	269.83M	41.61M	1.98M
Financing Cash Flow	-161.83M	-186.41M	-205.75M	-125.77M	-146.50M	-104.24M

Kasen International Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.42
• 50DMA: Positive
• 100DMA: Negative
• 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:0496, the sentiment is Positive. The current price of 0.42 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.44, and above the 200-day MA of 0.40, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.11 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0496.

Kasen International Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0496	64 Neutral	HK$789.71M	10.00	1.50%	―	10.78%	-12.42%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1243	51 Neutral	HK$547.20M	-0.38	-38.17%	―	213.63%	-61.18%
3688	46 Neutral	HK$508.58M	-0.27	-29.51%	―	53.69%	-33.81%
0846	44 Neutral	HK$712.93M	-0.32	-12.55%	―	-25.51%	-158.20%
1176	40 Underperform	HK$415.98M	-0.13	-94.81%	―	27.88%	-56.97%
1628	38 Underperform	HK$184.08M	>-0.01	―	―	-62.71%	-16.95%

Kasen International Holdings Ltd. Corporate Events

Kasen International Engages in Significant Steel Structures Purchase Contract

Kasen International Holdings Ltd. announced a discloseable transaction involving a contract with Anhui Fuhuang Steel Structure Co., Ltd. for the purchase and manufacture of steel structures worth RMB43,536,600. This transaction, which exceeds 5% but is less than 25% of the applicable percentage ratios under the Listing Rules, requires reporting and announcement due to its significance. The contract outlines specific terms for the purchase of steel structures for a turbine hall, boiler operating platform, and vehicle storage warehouse, with structured payment terms.

The most recent analyst rating on (HK:0496) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Kasen International Holdings Ltd. stock, see the HK:0496 Stock Forecast page.