Ko Yo Chemical (Group) Limited (0827) AI Stock Analysis

• Market Cap: HK$138.64M
• Dividend Yield: N/A
• Average Volume (3M): 3.41M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: -12.18%
• EPS Growth: -222.34%
• Country: HK
• Employees: 773
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals
• EPS (TTM): -0.09
• Shares Outstanding: 6,028,042,500
• 10 Day Avg. Volume: 9,621,600
• 30 Day Avg. Volume: 3,405,766
• PEG Ratio: -0.22
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -36.78
• 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: 35 Underperform
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is primarily influenced by the company's poor financial performance, characterized by declining revenue, high leverage, and weak cash flow. Technical analysis indicates bearish momentum, while valuation metrics show significant challenges with a negative P/E ratio and no dividend yield. These factors paint a concerning picture for the stock, necessitating urgent strategic interventions.

Ko Yo Chemical (Group) Limited Business Overview & Revenue Model

Company Description

Ko Yo Chemical (Group) Limited (0827) is a Hong Kong-based investment holding company primarily engaged in the manufacturing and sale of chemical products. The company operates through various segments, including the production and sale of chemical fertilizers and the manufacturing of chemical products. Its core products include urea, ammonium bicarbonate, and compound fertilizers, which are essential components in agriculture and other industrial applications.

How the Company Makes Money

Ko Yo Chemical (Group) Limited generates revenue through the production and sale of chemical fertilizers and industrial chemical products. The company's key revenue streams include the sale of urea, ammonium bicarbonate, and compound fertilizers to agricultural sectors, which rely on these products to enhance crop yield and quality. Additionally, the company engages in the sale of chemical products for industrial use, leveraging its manufacturing capabilities to supply raw materials essential for various industrial processes. Ko Yo Chemical's earnings are significantly influenced by its ability to maintain cost-effective production and its strategic partnerships with distributors and agricultural businesses that ensure the broad distribution of its products.

Ko Yo Chemical (Group) Limited Financial Statement Overview

Summary

Ko Yo Chemical (Group) Limited is experiencing substantial financial difficulties. Revenue and profitability are declining, leverage is high, and cash generation is weak. Operational inefficiencies, high debt levels, and poor cash flow generation pose significant risks to financial stability.

Income Statement

The income statement reveals significant challenges. The company experienced a substantial drop in revenue from 2022 to 2023, resulting in a negative revenue growth rate of -10.13%. Gross profit margin has drastically reduced to 1.31% in 2023 from 9.87% in 2022. The net profit margin is deeply negative at -19.44% in 2023, indicating significant losses. EBIT and EBITDA margins have also deteriorated to -8.12% and -1.41% respectively in 2023, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a precarious financial position. The debt-to-equity ratio has increased from 2.96 in 2022 to 4.06 in 2023, indicating high leverage. Return on equity has plummeted to -16.78% in 2023, highlighting ineffectiveness in generating returns from shareholders' equity. The equity ratio is low at 6.44% in 2023, suggesting a high reliance on debt financing, which poses substantial financial risk.

Cash Flow

The cash flow statement highlights significant concerns. Free cash flow is zero in 2023, with no improvement from the previous year, indicating challenges in generating cash from operations after capital expenditures. The operating cash flow to net income ratio is undefined due to operating cash flow being zero, signifying potential liquidity issues. The company's ability to generate cash from its core operations is under severe stress.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.60B	2.90B	3.21B	3.07B	2.11B
	Gross Profit
34.18M	316.20M	793.27M	813.18M	34.21M
	EBIT
-210.92M	131.27M	599.38M	502.85M	-57.00M
	EBITDA
-36.64M	306.48M	813.12M	695.48M	147.50M
	Net Income Common Stockholders
-505.39M	-152.34M	201.56M	379.24M	-241.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.10M	62.93M	224.06M	413.26M	14.54M
	Total Assets
5.41B	6.27B	5.85B	4.04B	2.85B
	Total Debt
3.40B	3.69B	3.14B	2.56B	2.18B
	Net Debt
3.39B	3.63B	2.91B	2.16B	2.16B
	Total Liabilities
5.05B	5.35B	4.79B	3.21B	2.83B
	Stockholders Equity
403.22M	908.10M	1.06B	822.07M	16.98M
Cash Flow		Free Cash Flow
-111.57M	5.69M	-58.83M	-228.16M	-52.82M
	Operating Cash Flow
-103.33M	224.47M	715.30M	435.30M	6.58M
	Investing Cash Flow
280.47M	-718.51M	-1.16B	-650.26M	-57.80M
	Financing Cash Flow
-232.57M	332.57M	272.77M	593.86M	55.62M

Ko Yo Chemical (Group) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0827, the sentiment is Negative. The current price of 0.02 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 4.15 is Positive, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0827.

Ko Yo Chemical (Group) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0746	73 Outperform	HK$3.01B	6.24	8.22%	8.22%	-2.46%	20.39%
1702	69 Neutral	HK$1.03B	11.27	4.75%	2.16%	-13.75%	-56.14%
2198	54 Neutral	HK$2.14B	3.53	11.49%	―	47.32%	492.76%
0609	54 Neutral	HK$982.71M	13.49	2.75%	3.57%	-11.89%	-69.45%
Sector *	51 Neutral	$2.04B	-1.23	-21.09%	3.96%	2.90%	-30.45%
0954	38 Underperform	€156.26M	―	-10.94%	―	-9.85%	20.22%
0827	35 Underperform	HK$138.64M	―	-76.72%	―	-12.18%	-222.34%

Ko Yo Chemical (Group) Limited Corporate Events

Ko Yo Chemical Announces Unanimous Approval of AGM Resolutions

Ko Yo Chemical (Group) Limited announced the results of its Annual General Meeting (AGM) held on 30 May 2025, where all proposed resolutions were passed unanimously by shareholders. The resolutions included the adoption of financial statements, re-election of directors, authorization of directors’ remuneration, re-appointment of auditors, and granting of mandates for share issuance and repurchase. This successful AGM reflects strong shareholder support and positions the company for continued operational stability and strategic growth.

Ko Yo Chemical Appoints New Executive Director

Ko Yo Chemical (Group) Limited has announced the appointment of Mr. Fan Chao as an executive director, effective from May 1, 2025. Mr. Fan, currently serving as deputy vice president, brings extensive experience in chemical and biological engineering, having held various positions in Siemens and other companies. His appointment is expected to strengthen the company’s leadership and potentially enhance its market position.

Ko Yo Chemical Announces Board Composition and Roles

Ko Yo Chemical (Group) Limited announced the composition of its board of directors and their roles within the company. The board includes both executive and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This announcement provides clarity on the governance structure of the company, potentially impacting its operational transparency and stakeholder confidence.

Ko Yo Chemical Schedules Annual General Meeting for Key Resolutions

Ko Yo Chemical (Group) Limited has announced its annual general meeting scheduled for May 30, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of financial statements, re-election of directors, and re-appointment of auditors. Additionally, the company seeks approval to allot and issue shares, which could impact its capital structure and shareholder value.

Ko Yo Chemical Reports Significant Financial Decline in 2024

Ko Yo Chemical (Group) Limited reported a significant decline in its financial performance for the year ended December 31, 2024. The company experienced a 95% decrease in net cash inflow from operating activities and a substantial increase in loss attributable to shareholders, amounting to RMB505 million. Sales turnover decreased by 10.5%, with notable declines in the sales of urea and ammonia, while methanol sales saw a slight increase. The directors have decided not to recommend any final dividend for the year.

Ko Yo Chemical Warns of Increased Losses Amid Declining Profit Margins

Ko Yo Chemical (Group) Limited has issued a profit warning, indicating a significant increase in net loss for the year ending December 31, 2024, compared to the previous year. The anticipated net loss is approximately RMB434 million, up from RMB152 million in 2023, largely due to a decrease in gross profit margins and ongoing trial operations at their Electronic Materials Plant. The average gross profit margin dropped from 10.9% in 2023 to an expected 1.3% in 2024, exacerbated by lower selling prices of chemical products and fertilizers. Stakeholders are advised to exercise caution as the financial figures are preliminary and subject to adjustments.