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

• Market Cap: HK$158.12M
• Dividend Yield: N/A
• Average Volume (3M): 887.67K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.52
• Revenue Growth: 4.77%
• EPS Growth: -53.19%
• Country: HK
• Employees: 255
• Sector: Consumer Defensive
• Sector Strength: 59
• Industry: Household & Personal Products
• EPS (TTM): <0.01
• Shares Outstanding: 3,162,440,700
• 10 Day Avg. Volume: 448,000
• 30 Day Avg. Volume: 887,666
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 1

• Rating: 67 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The most significant factor influencing the stock score is the company's financial performance, highlighting strong revenue growth and cost management but also pointing out cash flow and asset challenges. Technical analysis indicates mild positive momentum, while valuation suggests moderate market expectations, with no dividend yield to attract income investors.

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

Company Description

BaWang International (Group) Holding Limited (1338) is a company primarily involved in the manufacturing and distribution of herbal shampoo, hair care, and personal care products. Known for leveraging traditional Chinese herbal medicine, the company offers a range of products designed to promote healthy hair and scalp, catering to both domestic and international markets.

How the Company Makes Money

BaWang International makes money by producing and selling a variety of personal care products, with a strong focus on herbal shampoos and hair care solutions. The company's primary revenue streams include direct sales through retail outlets, e-commerce platforms, and partnerships with distributors. BaWang also engages in marketing and branding efforts to enhance its product visibility and attract a broad customer base. Additionally, strategic partnerships and collaborations with retailers and other stakeholders help expand its market reach and increase sales.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	252.95M	237.65M	246.34M	273.60M	275.99M
Gross Profit	128.78M	119.72M	92.52M	99.03M	108.10M
EBITDA	14.25M	31.50M	15.19M	25.01M	26.93M
Net Income	6.55M	13.63M	-19.43M	-9.08M	-4.04M
Balance Sheet
Total Assets	235.43M	230.33M	244.23M	295.58M	264.57M
Cash, Cash Equivalents and Short-Term Investments	120.32M	88.27M	74.40M	63.27M	122.34M
Total Debt	15.89M	25.10M	33.28M	53.45M	11.48M
Total Liabilities	89.97M	90.83M	118.21M	149.72M	109.84M
Stockholders Equity	145.47M	139.50M	126.02M	145.85M	154.73M
Cash Flow
Free Cash Flow	12.19M	1.78M	22.15M	-65.00K	34.92M
Operating Cash Flow	31.15M	4.05M	24.11M	1.60M	37.89M
Investing Cash Flow	11.67M	19.35M	-177.00K	-50.52M	-1.18M
Financing Cash Flow	-10.16M	-9.07M	-11.28M	-11.44M	-16.81M

BaWang International (Group) Holding Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1338, the sentiment is Neutral. The current price of 0.05 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.66 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1338	67 Neutral	HK$158.12M	22.73	4.61%	―	4.77%	-53.19%
1962	63 Neutral	HK$317.91M	8.18	4.83%	11.60%	3.79%	-18.75%
Sector *	62 Neutral	HK$21.80B	9.50	5.51%	4.81%	1.21%	-23.08%
3332	61 Neutral	HK$680.45M	10.61	8.96%	―	30.72%	-35.61%
6893	48 Neutral	HK$311.16M	―	-27.11%	―	-0.79%	-34.52%
8281	44 Neutral	HK$102.00M	31.88	1.13%	4.10%	-12.00%	-57.89%
0157	41 Neutral	$1.10B	―	-12.38%	―	39.29%	-71.82%

BaWang International (Group) Holding Limited Corporate Events

BaWang International Announces Lease Agreement Amendment with Cost Reductions

BaWang International (Group) Holding Limited announced a second amendment to its 2021 Lease Agreement, effective from August 1, 2025. The amendment includes a rent-free period from August 1 to September 30, 2025, and a reduction in monthly rental fees from RMB943,699 to RMB715,876. This modification is expected to decrease the value of the right-of-use asset by approximately RMB3.6 million, reflecting a reduction in lease liabilities. The amendment, entered into under normal commercial terms, is subject to reporting and announcement requirements but is exempt from certain approval requirements under the Listing Rules.

BaWang International Issues Profit Warning Amid Rising Costs

BaWang International (Group) Holding Limited has issued a profit warning for the first half of 2025, expecting a net loss of approximately RMB4.9 million compared to a net profit in the same period of 2024. Despite an 11% increase in revenue, the loss is attributed to a decline in gross profit margin due to increased raw material costs and higher selling and distribution expenses driven by marketing efforts.

BaWang International Successfully Passes All Resolutions at AGM

BaWang International (Group) Holding Limited announced that all ordinary resolutions were passed at their Annual General Meeting held on May 30, 2025. The resolutions included the re-election of directors, approval of financial statements, and granting of mandates for share issuance and repurchase. This successful meeting indicates strong shareholder support and could enhance the company’s governance and operational strategies moving forward.