Kingworld Medicines Group Ltd. (1110) AI Stock Analysis

• Market Cap: HK$315.38M
• Dividend Yield: 5.87%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 53.1
• Beta (1Y): 0.34
• 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$0.50 ▼(-5.66% 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.

Positive Factors

Strong Balance Sheet

A strong balance sheet with moderate leverage provides financial stability, allowing the company to navigate economic fluctuations and invest in growth opportunities.

Effective Cost Management

Effective cost management enhances profitability and competitiveness, enabling the company to maintain healthy margins even in challenging market conditions.

High Dividend Yield

A high dividend yield attracts income-focused investors, providing a steady return and enhancing shareholder value, which can support stock price stability over time.

Negative Factors

Cash Flow Volatility

Volatile cash flow can hinder the company's ability to fund operations and investments, posing risks to liquidity and financial flexibility, especially during economic downturns.

Decline in Revenue Growth

A decline in revenue growth indicates potential challenges in market demand or competitive pressures, which could impact long-term profitability and market position.

Operating Cash Flow Decline

A decline in operating cash flow suggests difficulties in generating cash from core operations, which may affect the company's ability to meet financial obligations and invest in growth.

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: 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:1110, the sentiment is Negative. The current price of 0.53 is above the 20-day moving average (MA) of 0.53, above the 50-day MA of 0.52, and below the 200-day MA of 0.53, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.67 is Neutral, neither overbought nor oversold. The STOCH value of 0.00 is Positive, 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$329.33M	7.17	6.37%	1.12%	-16.52%	-8.87%
1110	56 Neutral	HK$315.38M	53.06	0.86%	5.87%	-10.78%	-82.81%
1643	55 Neutral	HK$482.40M	19.53	3.98%	―	-15.96%	32.95%
3390	52 Neutral	HK$263.73M	-9.19	-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$595.53M	-3.16	-40.38%	―	-43.46%	-96.48%
0455	44 Neutral	HK$268.76M	-3.99	-13.08%	―	-19.28%	-42.27%