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Kingworld Medicines Group Ltd. (HK:1110)
:1110
Hong Kong Market
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Kingworld Medicines Group Ltd. (1110) AI Stock Analysis

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HK:1110

Kingworld Medicines Group Ltd.

(1110)

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Neutral 56 (OpenAI - 4o)
Rating:56Neutral
Price Target:
HK$0.50
▼(-1.96% Downside)
Kingworld Medicines Group Ltd. has a stable financial foundation with effective cost management and a strong balance sheet. However, concerns about cash flow volatility and liquidity management, combined with mixed technical indicators and a high P/E ratio, suggest caution. The high dividend yield is a positive aspect, but the overall valuation remains a concern.

Kingworld Medicines Group Ltd. (1110) vs. iShares MSCI Hong Kong ETF (EWH)

Kingworld Medicines Group Ltd. Business Overview & Revenue Model

Company DescriptionKingworld Medicines Group Ltd. (1110) is a Chinese company engaged in the distribution and retail of pharmaceutical and healthcare products. The company operates through two primary segments: Pharmaceutical Products and Healthcare Products. It offers a wide range of products, including traditional Chinese medicines, over-the-counter drugs, and various consumer healthcare products, catering primarily to the domestic market in China.
How the Company Makes MoneyKingworld Medicines Group Ltd. generates revenue through the distribution and sale of pharmaceutical and healthcare products. The company operates a robust supply chain network that includes partnerships with manufacturers and retailers to ensure the availability of its products across various channels. Its revenue streams are primarily derived from the sale of traditional Chinese medicines, over-the-counter drugs, and consumer healthcare products. Strategic partnerships with key pharmaceutical manufacturers and retailers in China significantly contribute to its earnings, allowing the company to maintain a strong market presence and capitalize on the growing demand for healthcare products in the region.

Kingworld Medicines Group Ltd. Financial Statement Overview

Summary
Kingworld Medicines Group Ltd. demonstrates a stable financial position with consistent revenue and effective cost management. The balance sheet is strong, with moderate leverage and steady equity. However, cash flow volatility and recent declines in operating cash flow raise concerns about liquidity management.
Income Statement
Kingworld Medicines Group Ltd. has shown stable revenue over the years, with a slight decrease in 2024. The gross profit margin is healthy, indicating effective cost management relative to revenue. However, the net profit margin has experienced some fluctuations, suggesting challenges in maintaining consistent profitability. EBIT and EBITDA margins are strong, demonstrating good operational efficiency.
Balance Sheet
The company maintains a solid balance sheet with a stable equity ratio, reflecting financial stability. The debt-to-equity ratio is moderate, indicating a balanced use of debt financing. Return on Equity (ROE) is consistent, although not particularly high, suggesting steady returns to shareholders.
Cash Flow
There has been considerable volatility in free cash flow, impacting the overall cash flow stability. Operating cash flow has declined in recent periods, which is a concern for maintaining liquidity. The free cash flow to net income ratio indicates that cash generation from operations is not always aligned with accounting profits, potentially due to capital expenditures.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue939.84M1.06B1.08B957.70M847.39M745.38M
Gross Profit235.23M270.45M280.67M277.63M263.60M280.15M
EBITDA56.63M100.46M125.48M118.07M116.00M120.59M
Net Income5.43M41.56M38.10M22.74M30.32M11.72M
Balance Sheet
Total Assets1.40B1.42B1.34B1.26B1.21B1.26B
Cash, Cash Equivalents and Short-Term Investments254.85M249.60M194.03M256.17M198.41M261.46M
Total Debt434.48M402.44M354.43M290.68M238.96M305.78M
Total Liabilities701.11M710.04M638.30M569.15M493.19M576.86M
Stockholders Equity616.42M639.79M619.03M615.58M616.90M591.80M
Cash Flow
Free Cash Flow-7.83M94.73M-63.25M93.64M22.88M113.66M
Operating Cash Flow-21.66M135.82M42.28M186.55M81.20M123.58M
Investing Cash Flow40.88M-27.64M-120.63M-84.05M-50.84M-2.76M
Financing Cash Flow-74.00M-47.61M4.37M-51.31M-87.20M25.03M

Kingworld Medicines Group Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.51
Price Trends
50DMA
0.55
Negative
100DMA
0.56
Negative
200DMA
0.50
Positive
Market Momentum
MACD
-0.01
Negative
RSI
45.70
Neutral
STOCH
72.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1110, the sentiment is Positive. The current price of 0.51 is above the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.55, and above the 200-day MA of 0.50, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 45.70 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1110.

Kingworld Medicines Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
HK$496.80M20.123.98%-15.96%32.95%
60
Neutral
HK$380.15M8.416.37%1.05%-16.52%-8.87%
56
Neutral
HK$303.25M50.510.86%6.22%-10.78%-82.81%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
51
Neutral
HK$536.71M-40.38%-43.46%-96.48%
49
Neutral
HK$263.73M76.19-4.89%23.73%-1.68%-111.10%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1110
Kingworld Medicines Group Ltd.
0.51
0.02
4.08%
HK:0455
Tianda Pharmaceuticals Ltd.
0.14
-0.05
-26.32%
HK:1643
Modern Chinese Medicine Group Co. Ltd.
0.68
0.34
100.00%
HK:1652
Fusen Pharmaceutical Co., Ltd.
0.71
-0.28
-28.28%
HK:3390
Tycoon Group Holdings Limited
0.29
-3.36
-92.05%
HK:6833
Sinco Pharmaceuticals Holdings Ltd.
0.19
-0.05
-20.83%

Kingworld Medicines Group Ltd. Corporate Events

Kingworld Medicines Reports Decline in H1 2025 Financial Performance
Aug 27, 2025

Kingworld Medicines Group Ltd. reported a significant decline in its financial performance for the first half of 2025, with revenue dropping by 23% and profit attributable to owners of the company turning into a loss compared to the same period in 2024. The company’s gross profit margin slightly decreased, and overall profit for the period fell by 74.9%, reflecting challenges in maintaining profitability amidst rising administrative expenses and reduced sales.

The most recent analyst rating on (HK:1110) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Kingworld Medicines Group Ltd. stock, see the HK:1110 Stock Forecast page.

Kingworld Medicines Group Ltd. Projects Significant Profit Decline for H1 2025
Aug 21, 2025

Kingworld Medicines Group Ltd. announced an expected significant decrease in profits for the first half of 2025, with a projected drop of 70% to 75% compared to the same period in 2024. This decline is attributed mainly to a reduction in gross profit from the distribution of imported pharmaceutical and healthcare products in China, driven by a slowdown in market demand. Despite a slight increase in profits from its subsidiary Dong Di Xin, the company anticipates a loss of approximately RMB4.5 million for the period, compared to a profit of RMB30.7 million in the previous year.

The most recent analyst rating on (HK:1110) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Kingworld Medicines Group Ltd. stock, see the HK:1110 Stock Forecast page.

Kingworld Medicines Group Ltd. Schedules Board Meeting to Review Interim Results
Aug 14, 2025

Kingworld Medicines Group Ltd. has announced a board meeting scheduled for August 27, 2025, to discuss and approve the unaudited interim results for the first half of the year and consider an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential returns, impacting its market positioning and shareholder value.

Kingworld Medicines Announces Board Changes
Aug 3, 2025

Kingworld Medicines Group Limited announced the resignation of Mr. Zhang Jianbin as an independent non-executive director, effective August 1, 2025. Mr. Zhang also stepped down from his roles as chairman of the remuneration committee and member of the audit and nomination committees, citing personal endeavors. Dr. Chu Xiaoping has been appointed as the new chairman of the remuneration committee. This change in board composition reflects the company’s ongoing adjustments in leadership roles, potentially impacting its governance structure.

Kingworld Medicines Group Ltd. Announces New Board Composition
Aug 3, 2025

Kingworld Medicines Group Ltd. has announced the composition of its board of directors and their respective roles, effective from August 1, 2025. The board includes both executive and independent non-executive directors, with Mr. Zhao Li Sheng serving as Chairman. The announcement outlines the members of three key board committees: Audit, Remuneration, and Nomination, with specific directors assigned to each committee. This restructuring is likely to influence the company’s governance and strategic direction, potentially impacting its operational efficiency and stakeholder confidence.

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: Oct 22, 2025