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Sinomax Group Ltd. (HK:1418)
:1418
Hong Kong Market
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Sinomax Group Ltd. (1418) AI Stock Analysis

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HK:1418

Sinomax Group Ltd.

(1418)

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Neutral 57 (OpenAI - 5.2)
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)

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
Sales rebounded strongly in 2025, but profitability deteriorated (net margin down to ~1.3% from ~3.4%), leverage increased (debt-to-equity ~1.03), and cash conversion weakened (free cash flow to net income ~0.38). Overall financial quality looks pressured despite top-line momentum.
Income Statement
58
Neutral
Balance Sheet
55
Neutral
Cash Flow
52
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.70B4.09B3.61B3.17B4.26B
Gross Profit1.10B1.05B919.72M586.55M716.95M
EBITDA222.55M324.37M320.07M163.28M234.82M
Net Income60.30M138.07M62.59M-35.97M15.30M
Balance Sheet
Total Assets3.24B2.56B2.41B2.24B2.83B
Cash, Cash Equivalents and Short-Term Investments386.86M262.44M309.92M168.96M229.71M
Total Debt1.06B743.79M722.62M822.00M944.87M
Total Liabilities2.16B1.56B1.49B1.35B1.82B
Stockholders Equity1.03B973.71M925.76M895.20M992.82M
Cash Flow
Free Cash Flow57.95M184.10M358.11M98.55M69.70M
Operating Cash Flow150.74M249.94M420.35M149.60M118.34M
Investing Cash Flow-156.86M-82.70M-49.46M-20.79M28.19M
Financing Cash Flow115.45M-214.09M-231.43M-191.18M-55.86M

Sinomax Group Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.23
Price Trends
50DMA
0.16
Positive
100DMA
0.17
Negative
200DMA
0.20
Negative
Market Momentum
MACD
<0.01
Negative
RSI
56.79
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
HK$11.49B6.3613.03%5.53%-2.80%-12.13%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
HK$481.02M11.544.84%7.24%-6.53%-49.31%
57
Neutral
HK$288.75M4.786.01%7.76%14.80%-56.27%
44
Neutral
HK$163.71M-0.23-40.16%-27.42%-80.52%
41
Neutral
HK$132.45M-1.0932.91%-45.11%14.93%
41
Neutral
HK$76.58M-0.04
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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&#8217;s U.S. subsidiary, Sinomax USA, has entered into a 2026&#8211;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.Date of analysis: May 02, 2026