Kingworld Medicines Group Ltd. (1110) AI Stock Analysis

• Market Cap: HK$321.44M
• Dividend Yield: 6.22%
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): 54.1
• Beta (1Y): 0.35
• 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: Hold
• 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 Ltd. (1110) is a Hong Kong-based pharmaceutical company primarily engaged in the research, development, manufacturing, and distribution of a wide range of traditional Chinese medicines and healthcare products. The company operates in the healthcare sector and focuses on producing high-quality herbal medicines, dietary supplements, and functional food products, catering to both domestic and international markets.

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: 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 above the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.51, and above the 200-day MA of 0.51, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 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$404.55M	8.81	6.37%	1.08%	-16.52%	-8.87%
1110	56 Neutral	HK$321.44M	54.08	0.86%	6.22%	-10.78%	-82.81%
1643	53 Neutral	HK$518.40M	20.99	3.98%	―	-15.96%	32.95%
3390	52 Neutral	HK$254.79M	-8.88	-4.89%	25.93%	-1.68%	-111.10%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1652	49 Neutral	HK$580.83M	―	-40.38%	―	-43.46%	-96.48%

Kingworld Medicines Group Ltd. Corporate Events

Kingworld Medicines Reports Decline in H1 2025 Financial Performance

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

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

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

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

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.