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

• Market Cap: HK$224.90M
• Dividend Yield: N/A
• Average Volume (3M): 2.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: -22.72%
• EPS Growth: -212.73%
• Country: HK
• Employees: 773
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.03
• Shares Outstanding: 7,028,042,500
• 10 Day Avg. Volume: 3,016,000
• 30 Day Avg. Volume: 2,472,000
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -2.13
• 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: 46 Neutral
• Price Target: HK$0.03 ▲(13.33% Upside)

The overall stock score of 46.1 reflects significant financial challenges as the primary concern, with declining revenue, high leverage, and weak cash flow generation. Technical analysis provides some positive momentum, but valuation metrics are unfavorable due to negative profitability and lack of dividends. Immediate strategic interventions are necessary to address these critical issues.

Positive Factors

Market Position

Ko Yo Chemical's established position as a leading manufacturer in the chemical industry provides a competitive advantage, allowing it to leverage its brand and customer relationships to maintain market share and potentially expand into new markets.

Strategic Partnerships

Strategic partnerships enhance Ko Yo's market reach and operational efficiencies, enabling the company to better manage supply chains and distribution networks, which can lead to improved revenue stability and growth potential.

Industry Demand

Strong demand for fertilizers in the agriculture sector supports Ko Yo's revenue streams, providing a stable market for its products and helping to mitigate risks associated with market fluctuations in other sectors.

Negative Factors

High Leverage

The high and increasing debt-to-equity ratio indicates significant financial leverage, which can pose risks to financial stability and limit the company's ability to invest in growth opportunities or weather economic downturns.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and financial losses, which can erode shareholder value and hinder the company's ability to reinvest in its business for future growth.

Weak Cash Flow

Weak cash flow generation limits Ko Yo's ability to fund operations, invest in growth, and meet financial obligations, posing a risk to long-term financial health and operational sustainability.

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

Company Description

Ko 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 Money

Ko Yo Chemical generates revenue through the production and sale of its chemical products, with key revenue streams derived from the sale of fertilizers and specialty chemicals. The company capitalizes on its established presence in the agriculture sector, where demand for fertilizers remains strong. Additionally, Ko Yo engages in strategic partnerships with distributors and suppliers to enhance its market reach and operational efficiencies. Fluctuations in raw material prices, efficiency in production processes, and the ability to adapt to market trends also play significant roles in influencing its earnings.

Ko Yo Chemical (Group) Limited Financial Statement Overview

Summary

Ko Yo Chemical (Group) Limited is facing substantial financial difficulties. Revenue and profitability are declining, leverage is high, and cash generation is weak. The company needs to address operational inefficiencies, manage its debt levels, and improve its cash flow generation to stabilize its financial health.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.27B	2.60B	2.90B	3.21B	3.07B	2.11B
Gross Profit	-77.09M	34.18M	316.20M	793.27M	813.18M	34.21M
EBITDA	-133.72M	-36.64M	306.48M	813.12M	695.48M	147.50M
Net Income	-561.52M	-505.39M	-152.34M	201.56M	379.24M	-241.78M
Balance Sheet
Total Assets	4.86B	5.41B	6.27B	5.85B	4.04B	2.85B
Cash, Cash Equivalents and Short-Term Investments	29.04M	8.10M	62.93M	224.06M	413.26M	14.54M
Total Debt	2.81B	3.40B	3.69B	3.14B	2.56B	2.18B
Total Liabilities	4.69B	5.05B	5.35B	4.79B	3.21B	2.83B
Stockholders Equity	220.94M	403.22M	908.10M	1.06B	822.07M	16.98M
Cash Flow
Free Cash Flow	-88.34M	-111.57M	5.69M	-58.83M	-228.16M	-52.82M
Operating Cash Flow	-3.55M	-103.33M	224.47M	715.30M	435.30M	6.58M
Investing Cash Flow	201.89M	280.47M	-718.51M	-1.16B	-650.26M	-57.80M
Financing Cash Flow	-222.68M	-232.57M	332.57M	272.77M	593.86M	55.62M

Ko Yo Chemical (Group) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.03 is equal to the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.23 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, 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$4.47B	7.86	9.36%	6.70%	-3.73%	6.09%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0609	61 Neutral	HK$1.30B	20.16	2.46%	3.52%	-5.29%	-32.47%
1702	59 Neutral	HK$1.18B	16.45	3.61%	2.20%	-8.51%	-68.34%
2198	56 Neutral	HK$4.20B	5.57	13.87%	―	9.20%	213.87%
0827	46 Neutral	HK$224.90M	-0.32	-112.79%	―	-22.72%	-212.73%

Ko Yo Chemical (Group) Limited Corporate Events

Ko Yo Chemical Advances Debt Restructuring and Specialty Chemical Projects to Support Going Concern

Ko Yo Chemical (Group) Limited has provided an update on its going-concern status and related mitigation measures, highlighting ongoing efforts to manage its substantial bank debt through renewals, restructurings and repayments. The group has renewed or restructured about RMB394 million of bank loans, repaid roughly RMB51 million, secured RMB49 million in new borrowings, and is negotiating the renewal or restructuring of a further RMB231 million with the aim of extending repayment over three to five years. Operationally, the Dazhou plant completed shipment of its full 12,000-ton urea export quota in the fourth quarter, adding approximately RMB11.5 million in revenue, while the group has optimized its sales model by increasing the number of direct sales customers by 14 year-on-year. In addition, Ko Yo is continuing production optimization for its DMF and NMP projects at the Guang’an Ko Yo Electronic Materials Factory and is advancing the propylene oxide project at the Jiangsu Blue Planet factory into procedures handling and trial production preparation, signaling a push into higher-value chemical and electronic materials segments as part of its long-term stabilization and growth strategy.

The most recent analyst rating on (HK:0827) stock is a Hold with a HK$0.03 price target. To see the full list of analyst forecasts on Ko Yo Chemical (Group) Limited stock, see the HK:0827 Stock Forecast page.

Ko Yo Chemical Discloses CEO Emoluments for 2017-2018

Ko Yo Chemical (Group) Limited has provided supplemental disclosure regarding the emoluments of its Chief Executive Officer, Mr. Li Ciping, for the financial years 2017 and 2018. The announcement details specific compensations, including salaries, benefits, and pension contributions, for the period spanning May 2017 to July 2018. The report assures stakeholders that all other previously disclosed annual report information remains unchanged. This transparency in executive pay disclosures reflects the company’s adherence to corporate governance and regulatory compliance, which might positively impact its credibility and stakeholder confidence.

The most recent analyst rating on (HK:0827) stock is a Hold with a HK$0.03 price target. To see the full list of analyst forecasts on Ko Yo Chemical (Group) Limited stock, see the HK:0827 Stock Forecast page.

Ko Yo Chemical Announces Financial and Operational Updates

Ko Yo Chemical (Group) Limited has announced updates regarding its financial strategies and operational improvements as part of its annual report. The company has been actively negotiating with banks to restructure loans, aiming for a repayment schedule of 3 to 5 years. Additionally, the company has optimized its natural gas source at the Guangan plant, reducing production costs and increasing benefits. The Dazhou plant successfully shipped its export quota of urea, boosting revenue. The company is also enhancing its sales model by increasing direct sales customers and optimizing production at its Guang’an and Jiangsu factories. These measures are expected to strengthen the company’s financial position and operational efficiency.