Kingworld Medicines Group Ltd. (1110) AI Stock Analysis

• Market Cap: HK$321.44M
• Dividend Yield: 5.87%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 54.1
• Beta (1Y): 0.32
• Revenue Growth: -10.78%
• EPS Growth: -82.81%
• Country: HK
• Employees: 972
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -0.01
• Shares Outstanding: 622,499,940
• 10 Day Avg. Volume: 874,800
• 30 Day Avg. Volume: 1,111,766
• PEG Ratio: 0.49
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 2.60
• 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: 56 Neutral
• Price Target: HK$0.60 ▲(12.64% Upside)

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.

Positive Factors

Balance Sheet Strength

A solid balance sheet and stable equity ratio indicate structural financial stability, reducing insolvency risk and enabling multi-quarter investments in manufacturing, regulatory compliance, or product development without immediate reliance on external funding, supporting resilience.

Operational Margin Sustainability

Consistently healthy gross margins and strong EBIT/EBITDA margins point to durable cost discipline and pricing power. This supports long-term cash generation, funds reinvestment and R&D, and cushions against cyclical revenue pressures over the next several quarters.

Moderate Leverage

Moderate leverage limits refinancing and interest-rate strain, preserving financial flexibility for strategic capital spending or M&A. It reduces downside risk in cyclical healthcare demand and supports consistent returns without overburdening cash flow over time.

Negative Factors

Revenue Decline

A roughly 10.8% revenue decline signals weakening top-line momentum that can erode scale advantages and pressure long-term margins. If persistent, this reduces internal funding for R&D and commercialization, making strategic growth and market share retention harder.

Earnings Volatility

An over 80% drop in EPS highlights material earnings instability, which can reflect margin compression, one-offs, or loss of high-margin sales. Sustained EPS volatility undermines cash available for reinvestment and dividends and complicates multi-quarter planning.

Cash Flow Volatility & Declining OCF

Declining operating cash flow and volatile free cash flow weaken liquidity and constrain the company’s ability to fund capex, working capital, or regulatory commitments from operations. This increases reliance on external financing and raises execution risk over months.

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 multiple streams, primarily by selling its proprietary herbal medicines and healthcare products to wholesalers, retailers, and directly to consumers. The company benefits from a diversified product portfolio that includes traditional Chinese medicine formulations, which are increasingly popular in both local and overseas markets. Additionally, Kingworld may engage in collaborations and partnerships with other pharmaceutical companies and healthcare providers to enhance its distribution capabilities and expand its market reach. The company's earnings are also supported by its ability to leverage brand recognition and the growing demand for alternative medicine solutions.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	939.84M	1.06B	1.08B	957.70M	847.39M	745.38M
Gross Profit	235.23M	270.45M	280.67M	277.63M	263.60M	280.15M
EBITDA	56.63M	100.46M	125.48M	118.07M	116.00M	120.59M
Net Income	5.43M	41.56M	38.10M	22.74M	30.32M	11.72M
Balance Sheet
Total Assets	1.40B	1.42B	1.34B	1.26B	1.21B	1.26B
Cash, Cash Equivalents and Short-Term Investments	254.85M	249.60M	194.03M	256.17M	198.41M	261.46M
Total Debt	434.48M	402.44M	354.43M	290.68M	238.96M	305.78M
Total Liabilities	701.11M	710.04M	638.30M	569.15M	493.19M	576.86M
Stockholders Equity	616.42M	639.79M	619.03M	615.58M	616.90M	591.80M
Cash Flow
Free Cash Flow	-7.83M	94.73M	-63.25M	93.64M	22.88M	113.66M
Operating Cash Flow	-21.66M	135.82M	42.28M	186.55M	81.20M	123.58M
Investing Cash Flow	40.88M	-27.64M	-120.63M	-84.05M	-50.84M	-2.76M
Financing Cash Flow	-74.00M	-47.61M	4.37M	-51.31M	-87.20M	25.03M

Kingworld Medicines Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.53
• 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:1110, the sentiment is Negative. The current price of 0.53 is below the 20-day moving average (MA) of 0.53, above the 50-day MA of 0.53, and below the 200-day MA of 0.54, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 38.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
6833	60 Neutral	HK$345.59M	7.52	6.37%	1.12%	-16.52%	-8.87%
1110	56 Neutral	HK$321.44M	54.08	0.86%	5.87%	-10.78%	-82.81%
1643	53 Neutral	HK$525.60M	21.28	3.98%	―	-15.96%	32.95%
3390	53 Neutral	HK$299.49M	-10.44	-4.89%	28.00%	-1.68%	-111.10%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1652	49 Neutral	HK$536.71M	-2.85	-40.38%	―	-43.46%	-96.48%
0455	44 Neutral	HK$217.15M	-3.23	-13.08%	―	-19.28%	-42.27%

Kingworld Medicines Group Ltd. Corporate Events

Kingworld Medicines Signs MOU for HK$66 Million Pharma Manufacturing Acquisition

Kingworld Medicines Group Limited has announced that its wholly owned subsidiary, Kingworld Medicine (BVI), has entered into a non-legally binding memorandum of understanding to acquire a pharmaceutical manufacturing company that also owns certain landed property, with the consideration to be settled in cash. The proposed deal, which includes a refundable deposit of HK$3.32 million and a base purchase price of HK$66.44 million subject to adjustments for equipment value and net working capital, could become a discloseable transaction under Hong Kong listing rules if it proceeds, potentially expanding Kingworld’s capabilities in pharmaceutical production while leaving shareholders cautioned that the transaction may or may not materialise pending due diligence and a definitive sale and purchase agreement.

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.