Sinomax Group Ltd. (1418) AI Stock Analysis

• Market Cap: HK$507.50M
• Dividend Yield: 8.96%
• Average Volume (3M): 39.00K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.71
• Revenue Growth: 13.36%
• EPS Growth: 120.39%
• Country: HK
• Employees: 3,333
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.08
• Shares Outstanding: 1,750,002,100
• 10 Day Avg. Volume: 11,200
• 30 Day Avg. Volume: 39,000
• PEG Ratio: 0.13
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.84
• 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

• Rating: 70 Outperform
• Price Target: HK$0.50 ▲(72.41%Upside)

Sinomax Group Ltd. presents a strong valuation outlook with a low P/E ratio and high dividend yield, offering a compelling investment opportunity. Financial performance shows positive revenue growth and efficiency but is offset by low profitability and recent cash flow issues. Technical analysis reveals a bullish trend but warns of overbought conditions, suggesting caution for short-term price movements.

Sinomax Group Ltd. Business Overview & Revenue Model

Company Description

Sinomax Group Ltd. (1418) is a leading manufacturer and distributor specializing in the production of polyurethane-based comfort products. The company's core offerings include memory foam products such as pillows, mattresses, and mattress toppers, catering primarily to the home furnishing sector. Sinomax operates in various markets, with a strong presence in both the United States and China, leveraging its expertise in polyurethane foam technology to deliver high-quality comfort solutions.

How the Company Makes Money

Sinomax Group Ltd. generates revenue primarily through the sale of its polyurethane-based comfort products. The company's key revenue streams include retail sales through partnerships with major retailers in the United States and China, as well as direct-to-consumer sales via online platforms. Sinomax benefits from economies of scale in its manufacturing operations, which contribute to competitive pricing and profitability. Additionally, strategic partnerships with leading retail chains enhance its market reach and visibility, further driving sales revenue. The continuous investment in research and development also allows Sinomax to innovate and introduce new products, which supports sustained growth in its revenue base.

Sinomax Group Ltd. Financial Statement Overview

Summary

Sinomax Group Ltd. demonstrates an improving financial trajectory with strong revenue growth and better operational margins. However, challenges remain in profitability and cash flow stability. The balance sheet reveals moderate leverage, which should be monitored for financial risk management. Continued focus on enhancing net profitability and securing positive cash flow will be crucial for sustained financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.09B	3.61B	3.15B	4.26B	3.23B
Gross Profit	1.05B	919.72M	586.55M	716.95M	623.82M
EBITDA	324.37M	320.07M	165.32M	234.82M	251.80M
Net Income	138.07M	62.59M	-35.97M	15.30M	58.52M
Balance Sheet
Total Assets	2.56B	2.41B	2.24B	2.83B	2.51B
Cash, Cash Equivalents and Short-Term Investments	262.44M	309.92M	168.96M	229.71M	147.18M
Total Debt	743.79M	722.62M	822.00M	944.87M	785.45M
Total Liabilities	1.56B	1.49B	1.35B	1.82B	1.56B
Stockholders Equity	973.71M	925.76M	895.20M	992.82M	954.51M
Cash Flow
Free Cash Flow	184.10M	358.11M	98.55M	69.70M	46.68M
Operating Cash Flow	206.16M	420.35M	149.60M	118.34M	76.11M
Investing Cash Flow	-82.70M	-49.46M	-20.79M	18.62M	20.61M
Financing Cash Flow	-214.09M	-231.43M	-191.18M	-55.86M	-197.91M

Sinomax Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.29
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 0.29 is below the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.28, and above the 200-day MA of 0.26, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	70 Outperform	HK$507.50M	3.68	14.54%	8.96%	13.36%	120.39%
1373	70 Outperform	HK$665.26M	8.00	9.47%	4.30%	-4.58%	-31.73%
Sector *	56 Neutral	HK$23.69B	3.90	-1.57%	6.91%	0.06%	-64.88%
0396	51 Neutral	HK$75.15M	5.42	19.25%	―	20.86%	―
1575	42 Neutral	HK$177.33M	―		―	-37.59%	-244.66%
1198	42 Neutral	HK$883.51M	―		3.85%	―	―
2127	41 Neutral	HK$76.58M	―	-38.40%	―	-72.73%	-764.81%

Sinomax Group Ltd. Corporate Events

Sinomax Group Updates Nomination Committee Terms for Enhanced Governance

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

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

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

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.

Sinomax Group Ltd. Announces Key Resolutions for Upcoming AGM

Sinomax Group Ltd. has announced its annual general meeting to be held on May 16, 2025, where shareholders will consider several key resolutions. These include the approval of the company’s financial statements for 2024, the declaration of a final dividend, the re-election of directors, and the re-appointment of PricewaterhouseCoopers as auditors. Additionally, the meeting will address the authorization of the board to manage the issuance of shares and related securities, which could have implications for the company’s capital structure and market activities.