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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:36Underperform
Price Target:
HK$0.00
▼(-100.00%Downside)
Ko Yo Chemical (Group) Limited is facing significant financial challenges, which is the primary factor in the low overall score. The company is suffering from declining revenues, negative profitability, high leverage, and poor cash flow generation. Technical analysis confirms bearish trends, and valuation metrics are unfavorable. Immediate strategic changes are necessary to improve the company's financial stability.

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, an investment holding company, engages in the research and development, manufacture, marketing, and distribution of chemical products and chemical fertilizers in China. Its products include bulk blended fertilizer, urea, soda ash, and ammonia chloride. The company also provides agrotechnical services, including seeds selection, soil testing, fertilizing, field management, and prevention and control of diseases and pests to farmers under the Jiu Yuan Ce Fang brand. In addition, it is involved in the exploration and exploitation of a phosphorous mine; development of phosphoric acid and chemical production technology; and the manufacture and sale of engineering plastics. The company was incorporated in 2002 and is headquartered in Causeway Bay, Hong Kong.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.60B2.90B3.21B3.07B2.11B
Gross Profit34.18M316.20M793.27M813.18M34.21M
EBITDA-36.64M306.48M813.12M695.48M147.50M
Net Income-505.39M-152.34M201.56M379.24M-241.78M
Balance Sheet
Total Assets5.41B6.27B5.85B4.04B2.85B
Cash, Cash Equivalents and Short-Term Investments8.10M62.93M224.06M413.26M14.54M
Total Debt3.40B3.69B3.14B2.56B2.18B
Total Liabilities5.05B5.35B4.79B3.21B2.83B
Stockholders Equity403.22M908.10M1.06B822.07M16.98M
Cash Flow
Free Cash Flow-111.57M5.69M-58.83M-228.16M-52.82M
Operating Cash Flow-103.33M224.47M715.30M435.30M6.58M
Investing Cash Flow280.47M-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
43.09
Neutral
STOCH
13.65
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 0.02, 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 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 13.65 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 (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$3.22B6.678.22%7.69%-2.46%20.39%
69
Neutral
HK$1.06B11.514.75%2.12%-13.75%-56.14%
54
Neutral
HK$1.03B14.102.75%3.42%-11.89%-69.45%
49
Neutral
HK$2.03B3.4111.49%47.32%492.76%
44
Neutral
C$992.05M-6.72-13.73%2.53%17.45%-32.50%
36
Underperform
HK$150.70M-76.72%-12.18%-222.34%
DECZB
€16.12M-10.94%
* 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%
DE:CZB
Changmao Biochemical Engineering Co. Ltd. Class H
0.03
-0.02
-40.00%
HK:0609
Tiande Chemical Holdings Limited
1.20
0.11
10.09%
HK:1702
Dongguang Chemical Ltd.
1.70
-0.16
-8.60%
HK:2198
China Sanjiang Fine Chemicals Co., Ltd.
1.74
0.18
11.54%
HK:0746
Lee & Man Chemical Co. Ltd.
3.90
0.48
14.04%

Ko Yo Chemical (Group) Limited Corporate Events

Ko Yo Chemical Implements Strategic Measures to Address Financial and Operational Challenges
Jun 30, 2025

Ko Yo Chemical (Group) Limited has announced updates regarding its financial strategies and operational adjustments to address going concern issues. The company has successfully renewed or restructured significant bank loans and negotiated with bondholders to defer repayments, while also engaging with the Sichuan government for support in the natural gas sector. Additionally, the company is optimizing its sales model and advancing production projects, which are expected to enhance its market positioning and operational efficiency.

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.

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.Date of analysis: Jul 08, 2025