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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)

Rating:62Neutral
Price Target:
HK$0.50
▲(92.31% Upside)
The overall stock score is primarily influenced by strong valuation metrics, with a low P/E ratio and high dividend yield. However, financial performance concerns, particularly in cash flow stability, and bearish technical indicators weigh down the score. The absence of recent earnings call data and corporate events means these factors did not influence the score.

Sinomax Group Ltd. (1418) vs. iShares MSCI Hong Kong ETF (EWH)

Sinomax Group Ltd. Business Overview & Revenue Model

Company DescriptionSinomax Group Ltd. (1418) is a company engaged in the production and sale of polyurethane (PU) foam products. The company's core products include memory foam pillows, mattresses, and other bedding products, which are sold under the Sinomax brand. Sinomax operates in the consumer goods sector, providing comfort-based products designed to enhance sleep quality and overall well-being for its customers.
How the Company Makes MoneySinomax Group Ltd. generates revenue primarily through the manufacturing and sale of its polyurethane foam products. The company sells its products through various retail channels, including direct-to-consumer sales, as well as through partnerships with major retailers. Sinomax benefits from economies of scale by producing a large volume of foam products, which allows it to maintain competitive pricing while ensuring product quality. The company's earnings are also supported by its focus on innovation in product development, leveraging advanced foam technologies to meet consumer demand for comfort and support. Additionally, Sinomax may engage in licensing agreements or partnerships with other brands to expand its market reach and enhance its revenue streams.

Sinomax Group Ltd. Financial Statement Overview

Summary
Sinomax Group Ltd. shows positive revenue growth and improved operational margins. However, profitability and cash flow stability remain challenges, with recent cash flow concerns indicating potential liquidity issues.
Income Statement
75
Positive
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
68
Positive
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.09B3.61B3.15B4.26B3.23B
Gross Profit1.05B919.72M586.55M716.95M623.82M
EBITDA324.37M320.07M165.32M234.82M251.80M
Net Income138.07M62.59M-35.97M15.30M58.52M
Balance Sheet
Total Assets2.56B2.41B2.24B2.83B2.51B
Cash, Cash Equivalents and Short-Term Investments262.44M309.92M168.96M229.71M147.18M
Total Debt743.79M722.62M822.00M944.87M785.45M
Total Liabilities1.56B1.49B1.35B1.82B1.56B
Stockholders Equity973.71M925.76M895.20M992.82M954.51M
Cash Flow
Free Cash Flow184.10M358.11M98.55M69.70M46.68M
Operating Cash Flow206.16M420.35M149.60M118.34M76.11M
Investing Cash Flow-82.70M-49.46M-20.79M18.62M20.61M
Financing Cash Flow-214.09M-231.43M-191.18M-55.86M-197.91M

Sinomax Group Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.26
Price Trends
50DMA
0.29
Negative
100DMA
0.28
Negative
200DMA
0.28
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
40.76
Neutral
STOCH
46.37
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 0.26 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.29, and below the 200-day MA of 0.28, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.76 is Neutral, neither overbought nor oversold. The STOCH value of 46.37 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 (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
HK$615.19M12.975.44%4.65%-5.59%-53.05%
62
Neutral
HK$455.00M3.3014.54%8.52%13.36%120.39%
56
Neutral
HK$25.46B5.06-2.69%5.60%-0.43%-53.15%
51
Neutral
HK$81.62M5.3219.25%20.86%
42
Neutral
HK$675.63M
3.85%
41
Neutral
HK$76.58M-38.40%-72.73%-764.81%
41
Neutral
HK$174.11M
-37.59%-244.66%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1418
Sinomax Group Ltd.
0.27
0.10
58.82%
HK:0396
Hing Lee (HK) Holdings Limited
0.10
0.05
100.00%
HK:2127
Huisen Household International Group Limited
0.02
-0.08
-80.00%
HK:1575
Morris Home Holdings Limited
0.05
-0.04
-44.44%
HK:1198
Royale Home Holdings Limited
0.26
-0.22
-45.83%
HK:1373
International Housewares Retail Co
0.87
-0.21
-19.44%

Sinomax Group Ltd. Corporate Events

Sinomax Group Expands Stake in Target Company with EUR5 Million Share Subscription
Aug 4, 2025

Sinomax Group Ltd. has announced a further subscription of shares in a target company, with a transaction valued at EUR5 million. This move will result in Sinomax’s subsidiary owning 55% of the target company, consolidating its financial results into the group’s accounts. The transaction is classified as a discloseable transaction under Hong Kong’s listing rules but is exempt from shareholder approval. Additionally, the target group has secured rights to continue selling and manufacturing goods incorporating licensed properties, ensuring ongoing business operations under existing agreements.

Sinomax Group Issues Profit Warning Amid Global Trade Challenges
Aug 4, 2025

Sinomax Group Ltd. has issued a profit warning, indicating a significant decrease in expected profits for the first half of 2025 compared to the same period in 2024. The company attributes this decline to decreased revenue resulting from volatile global trade conditions, particularly due to U.S. tariff policies, which have disrupted supply chains and affected market conditions. Despite these challenges, Sinomax is leveraging its global network to adjust production capacity and is implementing cost-cutting measures to navigate the downturn and explore growth opportunities.

Sinomax Group Ltd. Acquires Intellectual Property to Enhance Brand Control
Aug 1, 2025

Sinomax Group Ltd. has announced the acquisition of intellectual property, transitioning from a licensee to a brand owner by purchasing the brand outright for US$4.6 million. This strategic move eliminates ongoing royalty obligations and grants Sinomax full control over brand usage, marketing, and expansion, with an expected annual return of approximately 17.39%. The acquisition is considered fair and beneficial for the company and its shareholders, with the purchase price expected to be settled by November 25, 2025.

Sinomax Group Schedules Board Meeting for Interim Results and Dividend Consideration
Jul 31, 2025

Sinomax Group Ltd. has announced that its board of directors will meet on August 19, 2025, to approve the unaudited interim results for the first half of the year ending June 30, 2025. The meeting will also consider the payment of an interim dividend and address any other business matters. This announcement may impact the company’s financial outlook and shareholder interests, as it involves key financial disclosures and potential dividend decisions.

Sinomax Group Ltd. Acquires Key Intellectual Property from Kimberly
Jul 8, 2025

Sinomax Group Ltd., through its subsidiary Sinomax USA, has entered into an agreement to acquire intellectual property from Kimberly, a Delaware-based company, for US$4.6 million. This acquisition, classified as a discloseable transaction under Hong Kong’s Listing Rules, involves the transfer of various IP rights related to household goods and accessory products, potentially enhancing Sinomax’s market position and operational capabilities.

Sinomax Group Updates Nomination Committee Terms for Enhanced Governance
Jun 25, 2025

Sinomax Group Limited has announced amendments to the terms of reference for its Nomination Committee, which is part of its Board of Directors. These changes, effective from July 1, 2025, aim to enhance the governance structure by ensuring a diverse and competent board composition. The amendments align with the Corporate Governance Code under the Hong Kong Stock Exchange’s listing rules, emphasizing the importance of independent non-executive directors and gender diversity within the committee.

Sinomax Group Announces Unanimous Approval of AGM Resolutions
May 16, 2025

Sinomax Group Limited, a company incorporated in the Cayman Islands, announced the successful approval of all resolutions at its Annual General Meeting held on May 16, 2025. The resolutions, which were passed unanimously, included the approval of the company’s audited financial statements, the declaration of a final dividend, the re-election of directors, and the re-appointment of PricewaterhouseCoopers as auditors.

Sinomax Group Announces Nomination Committee Change
May 16, 2025

Sinomax Group Limited has announced a change in the composition of its nomination committee. Ms. Lam Fei Man, an executive director, has been appointed as a member of the nomination committee, effective from May 16, 2025. This appointment may influence the company’s governance and decision-making processes, potentially impacting its strategic direction and stakeholder relations.

Sinomax Group Announces Board Restructuring
May 16, 2025

Sinomax Group Limited has announced changes to its board of directors, effective from May 16, 2025. The board comprises a mix of non-executive, executive, and independent non-executive directors, with Mr. Lam Chi Fan serving as the Chairman. The announcement outlines the roles and functions of each director within the company’s four board committees, which include Audit, Corporate Governance, Nomination, and Remuneration Committees. This restructuring of the board is likely aimed at strengthening corporate governance and enhancing strategic oversight within the company.

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: Aug 06, 2025