KWG Group Holdings (1813) AI Stock Analysis

• Market Cap: HK$529.55M
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.29
• Revenue Growth: -29.26%
• EPS Growth: 88.87%
• Country: HK
• Employees: 1,800
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.66
• Shares Outstanding: 3,418,884,000
• 10 Day Avg. Volume: 756,461
• 30 Day Avg. Volume: 1,238,692
• PEG Ratio: <0.01
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 0.77
• 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: 37 Underperform
• Price Target: HK$0.16 ▼(-2.50% Downside)

KWG Group Holdings is facing severe financial and operational challenges, as reflected in its financial performance and technical analysis. The company's declining revenues, negative profitability, and high debt levels are significant concerns. The technical indicators confirm a bearish trend, and the negative P/E ratio further highlights the stock's unattractiveness. These factors collectively result in a low overall stock score.

Positive Factors

Sustainable Development Focus

The company's focus on sustainable development and innovative design can enhance its market appeal and align with growing environmental regulations, potentially leading to long-term competitive advantages.

Partnerships and Collaborations

Strategic partnerships and collaborations enhance operational efficiency and secure prime locations, supporting long-term growth and revenue potential.

Diverse Revenue Streams

Diverse revenue streams from sales, leasing, and management services provide a balanced income mix, reducing reliance on any single source and supporting financial resilience.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in maintaining market share and competitiveness, potentially impacting long-term financial health.

High Debt Levels

High debt levels increase financial risk and limit flexibility, potentially affecting the company’s ability to invest in growth and manage economic downturns.

Negative Cash Flow

Negative cash flow indicates liquidity issues, challenging the company's ability to fund operations and growth initiatives without external financing.

KWG Group Holdings Business Overview & Revenue Model

Company Description

KWG Group Holdings Limited (1813) is a prominent property developer based in Hong Kong, primarily engaged in the development of residential, commercial, and retail properties. The company operates in the real estate sector, focusing on high-quality projects that cater to the growing demand for urban housing and commercial spaces. Its core services include property development, property investment, and property management, with a strong emphasis on sustainable development and innovative design.

How the Company Makes Money

KWG Group Holdings generates revenue mainly through the sale of properties, which includes residential units and commercial spaces developed under its various projects. Additionally, the company earns income from leasing its commercial properties, providing a steady revenue stream through rental income. The company also engages in property management services, which contribute to its earnings. Significant partnerships with local governments and collaborations with construction firms enhance its operational efficiency and help secure prime development locations, further bolstering its revenue potential.

KWG Group Holdings Financial Statement Overview

Summary

KWG Group Holdings faces significant financial challenges across all verticals. The company is experiencing declining revenues, negative profitability, and heavy reliance on debt, which combined with poor cash flow generation, raises concerns about its financial stability and ability to sustain operations.

Income Statement

The income statement reveals significant challenges, with declining revenue and profitability over the years. The gross profit margin and net profit margin have turned negative, reflecting substantial inefficiencies and losses. Revenue has decreased from previous periods, and EBIT and EBITDA margins are also deeply negative, indicating operational difficulties.

Balance Sheet

The balance sheet shows financial strain, with a very high debt-to-equity ratio due to shrinking equity and high debt levels. The equity ratio has substantially decreased, indicating a high reliance on debt financing. Return on equity is negative, highlighting the company's unprofitability.

Cash Flow

Cash flow analysis indicates severe issues, with free cash flow turning negative and no positive operating cash flow in the latest period. The company struggles to generate cash from operations, posing liquidity risks. The free cash flow to net income ratio is unfavorable, reflecting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.58B	11.06B	15.81B	13.45B	23.84B	29.74B
Gross Profit	1.63B	1.89B	-2.64B	-2.10B	5.05B	9.36B
EBITDA	1.77B	-4.53B	-14.42B	-10.18B	1.27B	11.39B
Net Income	-6.03B	-8.09B	-18.73B	-9.24B	2.42B	6.68B
Balance Sheet
Total Assets	151.04B	153.34B	167.47B	199.88B	232.25B	232.20B
Cash, Cash Equivalents and Short-Term Investments	837.32M	787.45M	10.78B	21.48B	38.37B	40.64B
Total Debt	72.92B	73.01B	73.91B	76.29B	78.16B	79.64B
Total Liabilities	143.53B	144.20B	149.39B	159.68B	172.55B	178.28B
Stockholders Equity	2.49B	4.00B	12.73B	31.50B	44.32B	43.53B
Cash Flow
Free Cash Flow	1.09B	1.66B	985.27M	10.04B	-1.93B	-937.41M
Operating Cash Flow	1.31B	1.93B	1.07B	11.23B	-21.82M	1.13B
Investing Cash Flow	-41.62M	-55.02M	1.81B	-2.81B	-34.09B	-3.74B
Financing Cash Flow	-1.81B	-2.51B	-5.46B	-12.83B	1.23B	-7.81B

KWG Group Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1813, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.22, and below the 200-day MA of 0.29, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 25.47 is Positive, neither overbought nor oversold. The STOCH value of 29.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1813.

KWG Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1321	61 Neutral	HK$1.25B	13.85	1.84%	―	-54.44%	120.18%
0230	46 Neutral	HK$3.25B	-1.06	-114.48%	―	-26.58%	-40.96%
1638	39 Underperform	HK$975.36M	-0.02	―	―	-45.46%	-33.35%
1668	38 Underperform	HK$1.22B	-0.14	―	―	―	―
1238	38 Underperform	HK$1.02B	-0.16	-17.55%	―	-11.33%	-7.70%
1813	37 Underperform	HK$529.55M	-0.26	-55.49%	―	-29.26%	88.87%

KWG Group Holdings Corporate Events

KWG Group Holdings Adjourns Winding-Up Petition Hearing

KWG Group Holdings Limited announced the adjournment of a winding-up petition hearing to 8 December 2025, following a session before the High Court of Hong Kong. The company advises shareholders and investors to exercise caution when dealing with its securities, highlighting the ongoing legal proceedings’ potential impact on its operations and market perception.

KWG Group Reports Decline in October 2025 Pre-Sales

KWG Group Holdings Limited announced its unaudited operating statistics for October 2025, revealing a pre-sales value of RMB621 million, which marks a 26.7% decrease compared to the previous year. The pre-sales area also saw a decline of 26.2%, amounting to approximately 31,000 square meters. These figures are preliminary and subject to change, highlighting a challenging period for the company and advising investors to exercise caution.

KWG Group Holdings Announces Adjournment of Winding-Up Petition Hearing

KWG Group Holdings Limited announced the adjournment of a winding-up petition hearing by the High Court to December 3, 2025. The company advises shareholders and investors to exercise caution and consult professional advisers regarding their positions, indicating ongoing financial uncertainties and potential impacts on its market operations.

KWG Group Reports Mixed September 2025 Pre-Sales Results

KWG Group Holdings Limited reported unaudited operating statistics for September 2025, highlighting a pre-sales value of RMB745 million, marking a 23.5% increase year-on-year. However, the pre-sales area decreased by 37.9% compared to the previous year. This data is preliminary and subject to change, advising investors to exercise caution.

KWG Group Completes Onshore Debt Restructuring

KWG Group Holdings Limited has successfully completed the restructuring of its onshore corporate bonds, which have been approved by the relevant creditors. The restructuring involves adjusting the repayment arrangements and offering options such as cash repurchase at a discounted price, debt-for-asset swap, full conversion into ordinary debts, and debt rollover. This development marks a significant step in stabilizing the company’s financial structure and could positively impact its market positioning.

KWG Group Extends Lease Agreement for IFP Property

KWG Group Holdings Limited has announced an extension of its property lease agreement for the IFP Property in Guangzhou, effective from October 1, 2025, to January 31, 2026. This extension is a continuing connected transaction under the Listing Rules, involving a wholly-owned subsidiary of the company as the lessor and a business investment group as the lessee. The transaction does not require independent shareholders’ approval but is subject to reporting and annual review requirements.

KWG Group’s Onshore Debt Restructuring Plan Approved

KWG Group Holdings Limited announced the approval of a restructuring plan for its onshore corporate bonds by relevant creditors. The plan includes options such as cash repurchase at a discounted price, debt-for-asset swap, full conversion into ordinary debts, and debt rollover, which aim to adjust the repayment arrangements for the bonds. This move is expected to impact the company’s financial operations and provide flexibility in managing its debt obligations.