Kingworld Medicines Group Ltd. (1110) AI Stock Analysis

• Market Cap: HK$345.70M
• Dividend Yield: 9.76%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.24
• Revenue Growth: -3.59%
• EPS Growth: 4.81%
• Country: HK
• Employees: 972
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 0.02
• Shares Outstanding: 622,499,940
• 10 Day Avg. Volume: 1,192,000
• 30 Day Avg. Volume: 1,066,133
• PEG Ratio: 0.20
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.88
• 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

• Rating: 71 Outperform
• Price Target: HK$0.50 ▼(-12.28%Downside)

The overall stock score is driven by strong technical indicators and attractive valuation metrics, suggesting potential undervaluation and a bullish trend. Financial performance is solid but impacted by cash flow concerns, which slightly dampens the overall score.

Kingworld Medicines Group Ltd. Business Overview & Revenue Model

Company Description

Kingworld Medicines Group Limited, an investment holding company, distributes branded imported pharmaceutical and healthcare products. The company also supplies pharmaceutical, healthcare, general foodstuffs, and medical products. It offers products for various functional categories, such as cough and phlegm relieving, gastrointestinal, vitamin, orthopedics, cardiovascular, influenza, and other categories under the Nin Jiom Chuan Bei Pei Pa Koa, Taiko Seirogan, Kawai Product Range, Flying Eagle Wood Lok Medicated Oil, Kyushin Pill, and Mentholatum Product Range brands. The company also manufactures and sells electrotherapeutic and physiotherapeutic devices, and general medical examination devices. It serves in the People's Republic of China, Hong Kong, the United States, the United Kingdom, Germany, Italy, Spain, Mexico, and internationally. The company was founded in 1996 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

Kingworld Medicines Group Ltd. generates revenue through the distribution and sale of pharmaceutical and healthcare products. The company's revenue model is primarily based on its extensive distribution network, which facilitates the supply of both international and domestic healthcare products to a broad customer base, including pharmacies, hospitals, and healthcare institutions. Key revenue streams include the sale of proprietary Chinese medicines and branded pharmaceutical products. Additionally, strategic partnerships with international pharmaceutical brands enhance their product portfolio and contribute significantly to their revenue. Factors such as a strong supply chain, established market presence, and continuous expansion of product offerings play a crucial role in the company's earnings.

Kingworld Medicines Group Ltd. Financial Statement Overview

Summary

Kingworld Medicines Group Ltd. demonstrates a stable financial position with effective cost management and a strong balance sheet. 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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.06B	1.08B	957.70M	847.39M	745.38M
Gross Profit	270.45M	280.67M	277.63M	263.60M	280.15M
EBITDA	100.46M	125.48M	118.07M	116.00M	120.59M
Net Income	41.56M	38.10M	43.54M	51.21M	50.89M
Balance Sheet
Total Assets	1.42B	1.34B	1.26B	1.21B	1.26B
Cash, Cash Equivalents and Short-Term Investments	249.60M	194.03M	256.17M	198.41M	261.46M
Total Debt	402.44M	354.43M	290.68M	238.96M	305.78M
Total Liabilities	710.04M	638.30M	569.15M	493.19M	576.86M
Stockholders Equity	639.79M	619.03M	615.58M	616.90M	591.80M
Cash Flow
Free Cash Flow	94.73M	-63.25M	93.64M	22.88M	113.66M
Operating Cash Flow	135.82M	42.28M	186.55M	81.20M	123.58M
Investing Cash Flow	-27.64M	-120.63M	-84.05M	-50.84M	-2.76M
Financing Cash Flow	-47.61M	4.37M	-51.31M	-87.20M	25.03M

Kingworld Medicines Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.57
• 50DMA: Positive
• 100DMA: Positive
• 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:1110, the sentiment is Positive. The current price of 0.57 is above the 20-day moving average (MA) of 0.56, above the 50-day MA of 0.56, and above the 200-day MA of 0.47, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1110	71 Outperform	HK$345.70M	7.29	6.61%	9.76%	-3.59%	4.81%
6833	66 Neutral	HK$498.06M	10.94	6.53%	4.41%	9.27%	-2.61%
Sector *	52 Neutral	kr5.53B	10.77	-62.48%	2.08%	25.98%	25.74%
0455	―	HK$365.51M	―	-11.18%	3.06%	―	―
1643	64 Neutral	HK$460.80M	36.57	2.03%	―	-39.05%	-80.60%
1652	46 Neutral	HK$257.33M	―	-40.39%	―	-43.73%	-434.56%
3390	45 Neutral	HK$308.43M	82.14	0.64%	20.29%	-26.91%	-98.72%

Kingworld Medicines Group Ltd. Corporate Events

Kingworld Medicines Clarifies 2025 Share Award Scheme Details

Kingworld Medicines Group Ltd. has announced further details regarding its 2025 Share Award Scheme, which involves granting shares to selected participants based on their work performance and contributions to the company. The company clarified that the vesting period for these shares can be less than 12 months if performance targets are met, and corrected a previous error regarding the number of shares available for future grants, confirming that 58,792,400 shares remain available.

Kingworld Medicines Announces Share Grant Under 2025 Scheme

Kingworld Medicines Group Ltd. has announced the grant of 3,457,600 awarded shares under its 2025 Share Award Scheme, with 1,397,600 shares allocated to connected persons and 2,060,000 shares to non-connected grantees. This grant represents approximately 0.56% of the company’s total issued share capital. The allocation of shares is based on the grantees’ positions, performance, and contributions to the company, and the shares are set to vest on July 4, 2025.

Kingworld Medicines Group Updates Nomination Committee Terms

Kingworld Medicines Group Ltd. has announced amendments to the terms of reference for its Nomination Committee, which is responsible for overseeing the composition of the Board and implementing corporate governance policies. The changes, effective from June 2025, aim to ensure the Board comprises qualified individuals and maintains diversity, with a requirement for at least one member of a different gender and a majority of independent non-executive directors.

Kingworld Medicines Group Ltd. AGM Resolutions Unanimously Passed

Kingworld Medicines Group Ltd. announced the successful passing of all resolutions at its Annual General Meeting held on May 29, 2025. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and granting of mandates for share issuance and repurchase. The unanimous approval of these resolutions, with a high shareholder turnout, underscores strong shareholder support and positions the company for continued strategic growth.