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Ko Yo Chemical (Group) Limited (HK:0827)
:0827
Hong Kong Market

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

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HK

Ko Yo Chemical (Group) Limited

(0827)

Rating:35Underperform
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 (0827) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionKo 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 MoneyKo 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
35
Negative
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
25
Negative
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
20
Very Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.60B2.90B3.21B3.07B2.11B
Gross Profit
34.18M316.20M793.27M813.18M34.21M
EBIT
-210.92M131.27M599.38M502.85M-57.00M
EBITDA
-36.64M306.48M813.12M695.48M147.50M
Net Income Common Stockholders
-505.39M-152.34M201.56M379.24M-241.78M
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.10M62.93M224.06M413.26M14.54M
Total Assets
5.41B6.27B5.85B4.04B2.85B
Total Debt
3.40B3.69B3.14B2.56B2.18B
Net Debt
3.39B3.63B2.91B2.16B2.16B
Total Liabilities
5.05B5.35B4.79B3.21B2.83B
Stockholders Equity
403.22M908.10M1.06B822.07M16.98M
Cash FlowFree Cash Flow
-111.57M5.69M-58.83M-228.16M-52.82M
Operating Cash Flow
-103.33M224.47M715.30M435.30M6.58M
Investing Cash Flow
280.47M-718.51M-1.16B-650.26M-57.80M
Financing Cash Flow
-232.57M332.57M272.77M593.86M55.62M

Ko Yo Chemical (Group) Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.02
Price Trends
50DMA
0.03
Negative
100DMA
0.03
Negative
200DMA
0.04
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
4.15
Positive
STOCH
>-0.01
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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$3.01B6.248.22%8.22%-2.46%20.39%
69
Neutral
HK$1.03B11.274.75%2.16%-13.75%-56.14%
54
Neutral
HK$2.14B3.5311.49%47.32%492.76%
54
Neutral
HK$982.71M13.492.75%3.57%-11.89%-69.45%
51
Neutral
$2.04B-1.23-21.09%3.96%2.90%-30.45%
38
Underperform
€156.26M-10.94%-9.85%20.22%
35
Underperform
HK$138.64M-76.72%-12.18%-222.34%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0827
Ko Yo Chemical (Group) Limited
0.02
-0.06
-75.00%
HK:0746
Lee & Man Chemical Co. Ltd.
3.62
0.07
1.97%
HK:2198
China Sanjiang Fine Chemicals Co., Ltd.
1.79
0.19
11.87%
HK:1702
Dongguang Chemical Ltd.
1.66
-0.20
-10.75%
HK:0954
Changmao Biochemical Engineering Co. Ltd. Class H
0.30
-0.13
-30.59%
HK:0609
Tiande Chemical Holdings Limited
1.12
0.07
6.67%

Ko Yo Chemical (Group) Limited Corporate Events

Ko Yo Chemical Announces Unanimous Approval of AGM Resolutions
May 30, 2025

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
Apr 30, 2025

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
Apr 30, 2025

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
Apr 14, 2025

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
Mar 28, 2025

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
Mar 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.