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Sinomax Group Ltd.
(1418)
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Rating:57Neutral
Price Target:
HK$0.17
▼(-25.65% Downside)
Action:Downgraded
Date:05/02/26
The score is held back mainly by deteriorating margins, weaker cash conversion, and rising leverage, plus a bearish technical setup with negative momentum despite oversold signals. These are partially offset by an attractive valuation profile (low P/E and high dividend yield).
Positive Factors
Revenue Recovery
A strong revenue rebound (~18% YoY in 2025) indicates durable end-market demand for bedding and PU foam products. Sustained top-line momentum supports better capacity utilization, potential scale-driven cost advantages and stronger negotiating leverage with retailers and OEM partners over the medium term.
Negative Factors
Margin Compression
Material net margin compression (to ~1.3% from ~3.4%) weakens earnings durability. Low margins reduce the company's ability to absorb raw material cost swings or competitive pricing, limit reinvestment and dividend capacity, and make profits more sensitive to modest demand or input-cost changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
A strong revenue rebound (~18% YoY in 2025) indicates durable end-market demand for bedding and PU foam products. Sustained top-line momentum supports better capacity utilization, potential scale-driven cost advantages and stronger negotiating leverage with retailers and OEM partners over the medium term.
Read all positive factors
Sinomax Group Ltd. (1418) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$288.75M
Dividend Yield7.76%
Average Volume (3M)293.40K
Price to Earnings (P/E)4.8
Beta (1Y)0.68
Revenue Growth14.80%
EPS Growth-56.27%
CountryHK
Employees3,333
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.03
Shares Outstanding1,750,002,100
10 Day Avg. Volume335,200
30 Day Avg. Volume293,400
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)0.40
Price to Sales (P/S)0.09
P/FCF Ratio7.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Sinomax Group Ltd. Business Overview & Revenue Model
Company Description
Sinomax Group Limited functions as an investment holding company, primarily engaged in the manufacturing and distribution of health and household goods, as well as polyurethane foam. The company offers a diverse range of products such as viscoelas...
How the Company Makes Money
Sinomax makes money primarily by manufacturing and selling PU foam and finished foam-based consumer products. Key revenue streams typically include: (1) Sales of finished bedding and comfort products (e.g., mattresses, mattress toppers, pillows, c...
Sinomax Group Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
55
Neutral
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.70B | 4.09B | 3.61B | 3.17B | 4.26B |
| Gross Profit | 1.10B | 1.05B | 919.72M | 586.55M | 716.95M |
| EBITDA | 222.55M | 324.37M | 320.07M | 163.28M | 234.82M |
| Net Income | 60.30M | 138.07M | 62.59M | -35.97M | 15.30M |
Balance Sheet | |||||
| Total Assets | 3.24B | 2.56B | 2.41B | 2.24B | 2.83B |
| Cash, Cash Equivalents and Short-Term Investments | 386.86M | 262.44M | 309.92M | 168.96M | 229.71M |
| Total Debt | 1.06B | 743.79M | 722.62M | 822.00M | 944.87M |
| Total Liabilities | 2.16B | 1.56B | 1.49B | 1.35B | 1.82B |
| Stockholders Equity | 1.03B | 973.71M | 925.76M | 895.20M | 992.82M |
Cash Flow | |||||
| Free Cash Flow | 57.95M | 184.10M | 358.11M | 98.55M | 69.70M |
| Operating Cash Flow | 150.74M | 249.94M | 420.35M | 149.60M | 118.34M |
| Investing Cash Flow | -156.86M | -82.70M | -49.46M | -20.79M | 28.19M |
| Financing Cash Flow | 115.45M | -214.09M | -231.43M | -191.18M | -55.86M |
Sinomax Group Ltd. Technical Analysis
Negative
0.23
Price Trends
0.16
Positive
0.17
Negative
0.20
Negative
Market Momentum
<0.01
Negative
56.79
Neutral
75.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1418, the sentiment is Negative. The current price of 0.23 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.16, and above the 200-day MA of 0.20, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.79 is Neutral, neither overbought nor oversold. The STOCH value of 75.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1418.
Sinomax Group Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | HK$11.49B | 6.36 | 13.03% | 5.53% | -2.80% | -12.13% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | HK$481.02M | 11.54 | 4.84% | 7.24% | -6.53% | -49.31% | |
57 Neutral | HK$288.75M | 4.78 | 6.01% | 7.76% | 14.80% | -56.27% | |
44 Neutral | HK$163.71M | -0.23 | -40.16% | ― | -27.42% | -80.52% | |
41 Neutral | HK$132.45M | -1.09 | 32.91% | ― | -45.11% | 14.93% | |
41 Neutral | HK$76.58M | -0.04 | ― | ― | ― | ― |
* Consumer Cyclical Sector Average
HK:1418
Sinomax Group Ltd.
0.17
-0.11
-39.78%
HK:1373
International Housewares Retail Co
0.68
-0.20
-22.37%
HK:1999
Man Wah Holdings
2.99
-1.07
-26.34%
HK:1198
Royale Home Holdings Limited
0.06
-0.22
-77.89%
HK:1575
Morris Home Holdings Limited
0.04
-0.02
-36.36%
HK:2127
Huisen Household International Group Limited
0.02
0.00
0.00%
Sinomax Group Ltd. Corporate Events
Sinomax Wins Unanimous Shareholder Backing at 2026 AGM
May 29, 2026
Sinomax Group Limited reported that shareholders at its 29 May 2026 annual general meeting approved all resolutions put forward by the board, with 1,295,931,600 votes cast unanimously in favor on each item. The meeting endorsed the audited 2025 fi...
Sinomax Sets New Connected Product Sales and Logistics Deals Through 2029
May 29, 2026
Sinomax Group’s U.S. subsidiary, Sinomax USA, has entered into a 2026–2028 Sale and Purchase Framework Agreement with a buyer ultimately controlled by major shareholders of its subsidiary MDKH, covering sales of products manufactured, ...
Sinomax Sets 2026 AGM to Approve Results, Dividend and New Share Mandate
Apr 29, 2026
Sinomax Group Limited has convened its annual general meeting for 29 May 2026 in Hong Kong, where shareholders will review and approve the audited consolidated financial statements for the year ended 31 December 2025 and consider a proposed final ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.