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

• Market Cap: HK$204.95M
• Dividend Yield: N/A
• Average Volume (3M): 4.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -22.72%
• EPS Growth: -212.73%
• Country: HK
• Employees: 773
• Sector: Basic Materials
• Sector Strength: 69
• Industry: Chemicals
• EPS (TTM): -0.03
• Shares Outstanding: 6,028,042,500
• 10 Day Avg. Volume: 12,794,200
• 30 Day Avg. Volume: 4,820,066
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Ko Yo Chemical (Group) Limited's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenue, high leverage, and weak cash flow generation. Technical analysis provides some positive momentum, but valuation concerns with a negative P/E ratio and lack of dividend yield weigh heavily on the score.

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 primarily through the sale of its chemical and fertilizer products. The company's key revenue streams include the production and distribution of urea and compound fertilizers, which are sold to agricultural clients who use them to enhance crop yields. Additionally, Ko Yo Chemical produces methanol and other industrial chemical materials, which are sold to manufacturers and industrial clients for use in various applications, such as in the production of plastics and other chemical products. The company's earnings are influenced by factors such as the demand for agricultural products, raw material costs, and partnerships with distributors and retailers in its operational regions.

Ko Yo Chemical (Group) Limited Financial Statement Overview

Summary

Ko Yo Chemical (Group) Limited is facing substantial financial difficulties. The income statement shows a significant drop in revenue and profitability, with deeply negative net profit margins. The balance sheet reveals high leverage and low equity ratio, indicating financial instability. Cash flow generation is severely stressed, with zero free cash flow and potential liquidity issues.

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: Neutral
• Last Price: 0.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.95 is Neutral, neither overbought nor oversold. The STOCH value of 37.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	78 Outperform	HK$4.32B	7.44	9.36%	6.57%	-3.73%	6.09%
Sector *	61 Neutral	$10.24B	6.18	0.71%	2.90%	3.45%	-36.02%
2198	58 Neutral	HK$2.12B	2.79	13.87%	―	9.20%	213.87%
1702	57 Neutral	HK$807.23M	8.80	4.75%	2.84%	-13.75%	-56.14%
0609	54 Neutral	HK$1.18B	16.02	2.75%	3.76%	-11.89%	-69.45%
0827	45 Neutral	HK$204.95M	―	-112.79%	―	-22.72%	-212.73%
CZB	―	€18.07M	―	-13.04%	―	―	―

Ko Yo Chemical (Group) Limited Corporate Events

Ko Yo Chemical Issues Profit Warning Amid Declining Market Prices

Ko Yo Chemical (Group) Limited has issued a profit warning, anticipating a loss of approximately RMB185.8 million for the first half of 2025, an increase of RMB56.1 million compared to the previous year. This increased loss is attributed to a decline in product market prices, which has negatively impacted the gross profit margin. The announcement advises shareholders and potential investors to exercise caution when dealing with the company’s shares.

Ko Yo Chemical Updates on Share Option Scheme in 2024 Annual Report

Ko Yo Chemical (Group) Limited has issued a supplemental announcement regarding its share option scheme as detailed in its 2024 annual report. The company disclosed that as of the end of 2024, it had 171,492,259 share options available for grant, with a total of 550,304,259 shares available for issue under the scheme, representing approximately 9.1% of the issued shares. The announcement also highlighted restrictions on the number of shares that can be granted to participants within a 12-month period without shareholder approval, ensuring controlled distribution of share options.

Ko Yo Chemical Announces Upcoming Board Meeting to Discuss Interim Results and Dividend

Ko Yo Chemical (Group) Limited has announced a board meeting scheduled for August 29, 2025, to discuss several key matters, including the approval of the company’s consolidated unaudited interim results for the first half of 2025, consideration of an interim dividend, and the potential closure of the register of members. The outcomes of this meeting could influence the company’s financial strategy and shareholder relations, impacting its market positioning and stakeholder interests.

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.