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

• Market Cap: HK$150.70M
• Dividend Yield: N/A
• Average Volume (3M): 4.95M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: -12.18%
• EPS Growth: -222.34%
• Country: HK
• Employees: 773
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Chemicals
• EPS (TTM): -0.09
• Shares Outstanding: 6,028,042,500
• 10 Day Avg. Volume: 2,420,000
• 30 Day Avg. Volume: 4,949,766
• 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: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 36 Underperform
• 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 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 (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
EBITDA	-36.64M	306.48M	813.12M	695.48M	147.50M
Net Income	-505.39M	-152.34M	201.56M	379.24M	-241.78M
Balance Sheet
Total Assets	5.41B	6.27B	5.85B	4.04B	2.85B
Cash, Cash Equivalents and Short-Term Investments	8.10M	62.93M	224.06M	413.26M	14.54M
Total Debt	3.40B	3.69B	3.14B	2.56B	2.18B
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: Neutral
• 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 0.02, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0746	73 Outperform	HK$3.22B	6.67	8.22%	7.69%	-2.46%	20.39%
1702	69 Neutral	HK$1.06B	11.51	4.75%	2.12%	-13.75%	-56.14%
0609	54 Neutral	HK$1.03B	14.10	2.75%	3.42%	-11.89%	-69.45%
2198	49 Neutral	HK$2.03B	3.41	11.49%	―	47.32%	492.76%
Sector *	44 Neutral	C$992.05M	-6.72	-13.73%	2.53%	17.45%	-32.50%
0827	36 Underperform	HK$150.70M	―	-76.72%	―	-12.18%	-222.34%
CZB		€16.12M	―	-10.94%	―	―	―

Ko Yo Chemical (Group) Limited Corporate Events

Ko Yo Chemical Implements Strategic Measures to Address Financial and Operational Challenges

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

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.