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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:72Outperform
Price Target:
HK$0.50
▲(61.29%Upside)
The stock's strong valuation with a low P/E ratio and high dividend yield is the most significant positive factor. Technical analysis supports a positive outlook with the stock trading above key moving averages. Financial performance is improving, but cash flow concerns and moderate profitability limit 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
Positive
Last Price0.31
Price Trends
50DMA
0.29
Positive
100DMA
0.29
Positive
200DMA
0.27
Positive
Market Momentum
MACD
<0.01
Negative
RSI
81.93
Negative
STOCH
67.26
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 0.31 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.29, and above the 200-day MA of 0.27, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 81.93 is Negative, neither overbought nor oversold. The STOCH value of 67.26 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
HK$551.25M3.9314.54%7.30%13.36%120.39%
70
Outperform
HK$650.96M7.759.47%4.35%-4.58%-31.73%
57
Neutral
HK$26.40B4.11-2.03%5.49%-0.23%-68.02%
51
Neutral
HK$79.19M5.1619.25%20.86%
43
Neutral
HK$180.55M
-37.59%-244.66%
42
Neutral
HK$714.60M
3.85%
41
Neutral
HK$76.58M-38.40%-72.73%-764.81%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1418
Sinomax Group Ltd.
0.32
0.20
166.67%
HK:0396
Hing Lee (HK) Holdings Limited
0.10
0.06
150.00%
HK:2127
Huisen Household International Group Limited
0.02
-0.07
-77.78%
HK:1575
Morris Home Holdings Limited
0.06
-0.03
-33.33%
HK:1198
Royale Home Holdings Limited
0.28
-0.05
-15.15%
HK:1373
International Housewares Retail Co
0.92
-0.20
-17.86%

Sinomax Group Ltd. Corporate Events

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: Jul 12, 2025