Sinomax Group Ltd. (1418) AI Stock Analysis

• Market Cap: HK$411.25M
• Dividend Yield: 7.76%
• Average Volume (3M): 293.40K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.63
• Revenue Growth: -1.05%
• EPS Growth: -2.97%
• Country: HK
• Employees: 3,333
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.01
• Shares Outstanding: 1,750,002,100
• 10 Day Avg. Volume: 335,200
• 30 Day Avg. Volume: 293,400
• PEG Ratio: 0.03
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 2.38
• 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: 73 Outperform
• Price Target: HK$0.50 ▲(117.39% Upside)

Sinomax Group Ltd. receives a strong overall score due to its attractive valuation with a low P/E ratio and high dividend yield. The financial performance shows improvement in revenue and operational margins, though cash flow concerns persist. Technical analysis indicates positive momentum, but caution is advised due to potential overbought conditions.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Operational Margins

Enhanced operational margins suggest increased efficiency and cost control, which can lead to improved profitability over time.

Market Position

A strong market position in the home furnishings sector provides a competitive edge and potential for sustained revenue streams.

Negative Factors

Cash Flow Concerns

Zero cash flow can hinder the company's ability to invest in growth opportunities and manage financial obligations, impacting long-term stability.

Profitability Challenges

Low net profit margins can limit the company's ability to generate sufficient returns, affecting its capacity to reinvest in the business.

Leverage Risk

Moderate leverage requires careful financial management to avoid excessive debt burdens that could constrain future growth and flexibility.

Sinomax Group Ltd. Business Overview & Revenue Model

Company Description

Sinomax Group Limited, an investment holding company, manufactures, and sells health and household products, and polyurethane foam. The company offers viscoelastic pillows, mattress toppers, and mattresses under the SINOMAX, Octaspring, Zeopedic, Zeosleep, PureLUX, Dream Serenity, ComforZen, Cradlez, Customizer, Design, Spa Supreme, and Tung Ah brands. It sells its products through self-operated stand-alone retail shops and concession counters in department store, as well as internet. The company also engages in the retail and wholesale of health and household products; and provision of treasury management services. It has operations in the People's Republic of China, Hong Kong, and Macau; the United States, Canada, and other North American countries; and Europe and internationally. The company was founded in 2000 and is headquartered in Kowloon Bay, Hong Kong. Sinomax Group Limited is a subsidiary of Sinomax Enterprises Limited.

How the Company Makes Money

Sinomax Group Ltd. generates revenue primarily through the sale of its core products, which include mattresses, pillows, and other bedding accessories. The company's revenue model is based on direct sales to consumers as well as wholesale distributions to retailers, hotels, and other commercial entities. Key revenue streams include product sales, custom manufacturing services for specific clients, and partnerships with international retailers that help expand their market reach. Additionally, the company benefits from economies of scale in production, allowing it to maintain competitive pricing while maximizing profit margins.

Sinomax Group Ltd. Financial Statement Overview

Summary

Sinomax Group Ltd. shows strong revenue growth and improved operational margins. However, profitability and cash flow stability remain challenges, with zero operating and free cash flow in the latest period. The balance sheet is moderately leveraged, indicating a need for careful financial risk management.

Income Statement

Sinomax Group Ltd. has shown a positive revenue growth trend over the years, with a significant increase from 2023 to 2024. The gross profit margin has also improved, indicating enhanced cost management. However, the net profit margin remains relatively low, though there has been a notable improvement compared to previous losses. The EBIT and EBITDA margins have shown recovery, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet reflects moderate leverage, with a stable debt-to-equity ratio. Stockholders' equity has increased, contributing to a better equity ratio. However, the return on equity (ROE) is moderate, indicating room for improvement in profitability relative to equity.

Cash Flow

Sinomax Group Ltd.'s cash flow situation shows potential concerns, with operating cash flow and free cash flow at zero in the latest period. Previous periods showed positive free cash flow growth, but the recent lack of free cash flow could pose liquidity challenges. Despite past positive cash flow to net income ratios, recent data is unavailable for a comprehensive assessment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.98B	4.09B	3.61B	3.17B	4.26B	3.23B
Gross Profit	982.13M	1.05B	919.72M	586.55M	716.95M	623.82M
EBITDA	283.97M	324.37M	320.07M	163.28M	234.82M	251.80M
Net Income	102.88M	138.07M	62.59M	-35.97M	15.30M	58.52M
Balance Sheet
Total Assets	2.73B	2.56B	2.41B	2.24B	2.83B	2.51B
Cash, Cash Equivalents and Short-Term Investments	348.32M	262.44M	309.92M	168.96M	229.71M	147.18M
Total Debt	891.26M	743.79M	722.62M	822.00M	944.87M	785.45M
Total Liabilities	1.72B	1.56B	1.49B	1.35B	1.82B	1.56B
Stockholders Equity	973.52M	973.71M	925.76M	895.20M	992.82M	954.51M
Cash Flow
Free Cash Flow	35.68M	184.10M	358.11M	98.55M	69.70M	46.68M
Operating Cash Flow	120.51M	249.94M	420.35M	149.60M	118.34M	76.11M
Investing Cash Flow	-140.32M	-82.70M	-49.46M	-20.79M	28.19M	12.75M
Financing Cash Flow	34.93M	-214.09M	-231.43M	-191.18M	-55.86M	-197.91M

Sinomax Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.23
• 50DMA: Positive
• 100DMA: Positive
• 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:1418, the sentiment is Positive. The current price of 0.23 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.24, and below the 200-day MA of 0.26, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 64.03 is Neutral, neither overbought nor oversold. The STOCH value of 24.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1418.

Sinomax Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1418	73 Outperform	HK$411.25M	4.00	10.72%	7.76%	-1.05%	-2.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1373	60 Neutral	HK$512.13M	12.22	4.79%	7.24%	-6.53%	-49.31%
0396	53 Neutral	HK$99.40M	5.89	20.69%	8.93%	-13.44%	―
1575	44 Neutral	HK$148.31M	-5.41	―	―	-50.43%	79.67%
2127	41 Neutral	HK$76.58M	-0.04	―	―	-72.73%	-764.81%
1198	39 Underperform	HK$324.82M	-0.63	-36.67%	―	―	―

Sinomax Group Ltd. Corporate Events

Sinomax Expands Haining Lease with Connected-Party Deal for Additional Premises

Sinomax Group Limited has expanded its leasing arrangements in Haining, China, with its indirect non-wholly-owned subsidiary Sinomax Kuka signing a supplemental agreement to lease two additional premises from Zhejiang Puruimei for 2026 at a combined monthly rent of roughly RMB58,750, excluding management fees and other charges. Under HKFRS 16, the leases are treated as a one-off acquisition of right-of-use assets, and the size of the transaction means it remains a discloseable and connected transaction under Hong Kong listing rules, requiring reporting and announcement; the aggregation of the original 2024-2026 lease and the supplemental agreement underscores the group’s growing operational footprint in Haining while highlighting ongoing related-party dealings with a landlord connected to a director of Sinomax Kuka.

The most recent analyst rating on (HK:1418) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Sinomax Group Ltd. stock, see the HK:1418 Stock Forecast page.

Sinomax Renews Connected Dongguan Plant Lease for 2026 at RMB1.3 Million a Month

Sinomax Group’s indirect wholly owned subsidiary Dongguan Sinohome has signed a new one-year lease with connected party Dongguan Donglian for its Dongguan premises, covering the period from 1 January to 31 December 2026 at a monthly rent of RMB1.3 million. The deal, classified as a connected transaction due to Dongguan Donglian’s ownership by a controlling shareholder, remains below key regulatory thresholds, meaning it requires reporting and announcement but is exempt from circular and independent shareholder approval, and the lease will be treated as a short-term rental expense under HKFRS 16 rather than creating right-of-use assets or lease liabilities.

The most recent analyst rating on (HK:1418) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Sinomax Group Ltd. stock, see the HK:1418 Stock Forecast page.