BaWang International (Group) Holding Limited (1338) AI Stock Analysis

• Market Cap: HK$113.85M
• Dividend Yield: N/A
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): 41.1
• Beta (1Y): 0.56
• Revenue Growth: 5.99%
• EPS Growth: -74.29%
• Country: HK
• Employees: 255
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): >-0.01
• Shares Outstanding: 3,162,440,700
• 10 Day Avg. Volume: 2,016,000
• 30 Day Avg. Volume: 1,532,333
• PEG Ratio: -0.44
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 12.19
• 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$0.04 ▼(-7.50% Downside)

The overall score is primarily influenced by the company's solid financial performance, particularly its revenue growth and strong balance sheet. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The absence of a dividend yield further impacts the valuation negatively.

Positive Factors

Consistent revenue growth

Sustained top-line growth (~6%–6.43%) signals lasting consumer demand and effective distribution across retail, e-commerce and export channels. This durable revenue momentum supports scale advantages, reinvestment in brand and product development, and resilience over the next several quarters.

High gross profit margin

A ~51% gross margin reflects strong product mix, pricing power and cost management in core herbal hair-care products. High product-level margins provide room to fund marketing and channel expansion while absorbing input-cost volatility, supporting sustainable profitability over time.

Conservative leverage and strong equity base

Low leverage and a high equity ratio give the company financial flexibility to fund working capital, capex or overseas expansion without heavy refinancing risk. This conservative balance-sheet positioning bolsters durability in downturns and supports strategic investments.

Negative Factors

Zero free cash flow in 2024

A reported zero free cash flow and lack of operating cash flow in 2024 are structural concerns: they limit the firm’s ability to self-fund capex, marketing and inventory growth. Persistent weak cash generation would force reliance on external funding or cutbacks, harming long-term execution.

Very low net and operating margins

Despite a strong gross margin, compressed net and EBIT margins indicate high operating costs or inefficiencies (SG&A, distribution). Low operating profitability reduces the company’s buffer against revenue shocks and constrains ability to reinvest, making earnings fragile over time.

Sharp EPS decline and shrinking asset base

A steep EPS decline (~-74%) coupled with a noted decline in total assets signals earnings volatility and potential underinvestment or asset run-down. This undermines long-term earnings visibility and could impair capacity to scale distribution and product development without corrective actions.

BaWang International (Group) Holding Limited Business Overview & Revenue Model

Company Description

BaWang International (Group) Holding Limited, together with its subsidiaries, designs, manufactures, trades in, and distributes Chinese herbal products in the People's Republic of China, Hong Kong, Thailand, and Malaysia. It operates through Hair-Care Products, Skin-Care Products, and Other Household and Personal Care Products segments. The company offers shampoo, hair-care, skin-care, household cleaning, and shower gel products, as well as laundry detergents and anti-bacterial hand gel under the Bawang, Royal Wind, Herborn, and Litao brands through distributors and retailers; and through online. It also manufactures, markets, and trades in household and personal care products. The company was incorporated in 2007 and is based in Guangzhou, the People's Republic of China. BaWang International (Group) Holding Limited is a subsidiary of Fortune Station Limited.

How the Company Makes Money

BaWang International generates revenue primarily through the sales of its personal and hair care products across various distribution channels, including retail stores, e-commerce platforms, and direct sales. Key revenue streams come from both domestic and international markets, with a growing focus on expanding its presence in overseas markets. The company has also established partnerships with various distributors and retailers to enhance its market reach, which contributes significantly to its earnings. Additionally, BaWang capitalizes on brand loyalty and customer engagement strategies to drive repeat purchases, which are critical for sustaining revenue growth.

BaWang International (Group) Holding Limited Financial Statement Overview

Summary

BaWang International has demonstrated revenue growth and efficient cost management, contributing to a solid gross profit margin. The balance sheet is strong with low leverage, but challenges remain in maintaining asset levels and generating cash flow. Addressing liquidity issues could enhance overall financial stability.

Income Statement

The company has shown steady revenue growth with a recent 6.43% increase in 2024. The gross profit margin improved to 50.91%, indicating efficient cost management. However, the net profit margin declined slightly to 2.59%, and EBIT margin decreased to 3.00%, suggesting challenges in controlling operating expenses.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 61.79%. The debt-to-equity ratio is low at 0.11, indicating conservative leverage. However, a decline in total assets over recent years could pose future challenges.

Cash Flow

The company reported zero free cash flow in 2024, indicating potential cash management issues. Previously, it had positive free cash flow growth and a healthy operating cash flow to net income ratio. The lack of operating cash flow in 2024 suggests liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	263.20M	252.95M	237.65M	246.34M	273.60M	275.99M
Gross Profit	130.16M	128.78M	119.72M	92.52M	99.03M	108.10M
EBITDA	6.28M	14.25M	31.50M	15.19M	25.01M	26.93M
Net Income	2.58M	6.55M	13.63M	-19.32M	-9.08M	-4.04M
Balance Sheet
Total Assets	207.23M	235.43M	230.33M	244.23M	295.58M	264.57M
Cash, Cash Equivalents and Short-Term Investments	94.89M	120.32M	88.27M	74.40M	63.27M	122.34M
Total Debt	10.80M	15.89M	25.10M	33.28M	53.45M	11.48M
Total Liabilities	63.90M	89.97M	90.83M	118.21M	149.72M	109.84M
Stockholders Equity	143.33M	145.47M	139.50M	126.02M	145.85M	154.73M
Cash Flow
Free Cash Flow	14.60M	12.19M	1.78M	22.15M	-65.00K	34.92M
Operating Cash Flow	19.19M	31.15M	4.05M	24.11M	1.60M	37.89M
Investing Cash Flow	25.39M	11.67M	19.35M	-177.00K	-50.52M	-1.18M
Financing Cash Flow	-5.41M	-10.16M	-9.07M	-11.28M	-11.44M	-16.81M

BaWang International (Group) Holding Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1338, the sentiment is Negative. The current price of 0.04 is equal to the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 34.37 is Neutral, neither overbought nor oversold. The STOCH value of 127.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1338.

BaWang International (Group) Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1962	63 Neutral	HK$349.70M	10.28	3.77%	10.32%	-6.67%	-29.55%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3332	62 Neutral	HK$631.85M	20.32	3.92%	―	-0.92%	-71.88%
1338	56 Neutral	HK$113.85M	41.11	1.83%	―	5.99%	-74.29%
6893	49 Neutral	HK$305.70M	-7.63	-23.55%	―	10.42%	11.14%
8281	45 Neutral	HK$100.00M	15.15	2.37%	―	-1.65%	230.00%
0157	41 Neutral	HK$981.03M	-15.76	-12.38%	―	39.29%	-71.82%

BaWang International (Group) Holding Limited Corporate Events

BaWang International Establishes Remuneration Committee to Strengthen Governance

BaWang International (Group) Holding Limited has announced the establishment of a Remuneration Committee as part of its corporate governance framework. This committee, consisting of at least three directors with a majority being independent non-executive directors, will oversee remuneration policies and practices, ensuring transparency and alignment with shareholder interests. This move is expected to enhance the company’s governance structure and potentially improve investor confidence.

The most recent analyst rating on (HK:1338) stock is a Hold with a HK$0.04 price target. To see the full list of analyst forecasts on BaWang International (Group) Holding Limited stock, see the HK:1338 Stock Forecast page.

BaWang International Establishes Nomination Committee to Enhance Governance

BaWang International (Group) Holding Limited has announced the establishment of a Nomination Committee by its Board of Directors. This committee will consist of at least three members, primarily independent non-executive directors, and aims to enhance corporate governance by overseeing the nomination process for board appointments. The creation of this committee is expected to strengthen the company’s governance structure and ensure diversity and transparency in its board appointments, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:1338) stock is a Hold with a HK$0.04 price target. To see the full list of analyst forecasts on BaWang International (Group) Holding Limited stock, see the HK:1338 Stock Forecast page.

BaWang International Enhances Governance with New Audit Committee

BaWang International (Group) Holding Limited has announced the establishment of an Audit and Risk Management Committee to enhance its corporate governance structure. The committee will consist of non-executive directors, with a majority being independent, to ensure transparency and accountability in financial oversight. This move is expected to strengthen the company’s compliance with the Hong Kong Stock Exchange’s listing rules and improve investor confidence.

The most recent analyst rating on (HK:1338) stock is a Hold with a HK$0.04 price target. To see the full list of analyst forecasts on BaWang International (Group) Holding Limited stock, see the HK:1338 Stock Forecast page.