KWG Group Holdings (1813) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: N/A
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.40
• Revenue Growth: -31.29%
• EPS Growth: 57.76%
• Country: HK
• Employees: 1,800
• Sector: Real Estate
• Sector Strength: 64
• Industry: Real Estate - Development
• EPS (TTM): 0.04
• Shares Outstanding: 3,418,884,000
• 10 Day Avg. Volume: 2,068,157
• 30 Day Avg. Volume: 2,207,350
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.80
• 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: $0.47
• Price Target Upside: 27.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: HK$0.50 ▲(35.14%Upside)

The overall stock score for KWG Group Holdings is primarily impacted by severe financial performance issues, including declining revenues and negative profitability. While there is short-term technical momentum, valuation concerns and a lack of positive earnings-related data further weigh down the stock's attractiveness.

KWG Group Holdings Business Overview & Revenue Model

Company Description

KWG Group Holdings Limited (1813) is a prominent real estate developer specializing in the development and sale of residential and commercial properties in China. The company operates across several sectors, including the development of high-end residential properties, commercial real estate, and office spaces. KWG Group Holdings is known for its comprehensive approach, which includes property management services and the investment in and operation of hotels.

How the Company Makes Money

KWG Group Holdings makes money primarily through the sale of developed residential and commercial properties. Revenue is generated from the successful development and sales of these properties, often located in prime urban locations. The company also earns income from property management services, which provide ongoing revenue streams from managing residential communities and commercial buildings. Additionally, investment in and operation of hotels contribute to their earnings, leveraging hospitality services to diversify income. Strategic partnerships with local government agencies and other real estate companies enhance their development capabilities and market reach, further boosting revenue potential.

KWG Group Holdings Financial Statement Overview

Summary

KWG Group Holdings faces significant financial challenges, with declining revenues, negative profitability, and heavy reliance on debt. The company's financial stability is concerning due to inefficiencies and liquidity risks.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.06B	15.81B	13.74B	23.84B	29.74B
Gross Profit	-396.67M	-2.64B	-2.14B	5.05B	9.36B
EBITDA	-2.12B	-10.44B	-5.26B	4.75B	9.99B
Net Income	-8.09B	-18.73B	-9.44B	2.42B	6.68B
Balance Sheet
Total Assets	153.34B	167.47B	197.06B	232.25B	232.20B
Cash, Cash Equivalents and Short-Term Investments	787.45M	1.72B	10.19B	7.72B	40.64B
Total Debt	73.01B	73.91B	75.21B	78.16B	79.64B
Total Liabilities	144.20B	149.39B	157.43B	172.55B	178.28B
Stockholders Equity	4.00B	12.73B	31.05B	44.32B	43.53B
Cash Flow
Free Cash Flow	1.66B	985.27M	-1.98B	-1.93B	-937.41M
Operating Cash Flow	1.93B	1.07B	-765.95M	-21.82M	1.13B
Investing Cash Flow	-55.02M	1.81B	-3.35B	-34.09B	-3.74B
Financing Cash Flow	-2.51B	-5.46B	-7.62B	1.23B	-7.81B

KWG Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1813, the sentiment is Positive. The current price of 0.37 is above the 20-day moving average (MA) of 0.33, above the 50-day MA of 0.32, and below the 200-day MA of 0.39, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 69.80 is Neutral, neither overbought nor oversold. The STOCH value of 85.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1813.

KWG Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1321	69 Neutral	HK$1.18B	2.36	9.93%	―	207.10%	―
Sector *	54 Neutral	$1.23B	3.77	0.67%	6.13%	-2.39%	-129.28%
0230	50 Neutral	€1.49B	―	-102.67%	―	-21.75%	-246.70%
1813	45 Neutral	$1.26B	―	-95.62%	―	-31.29%	57.76%
1238	45 Neutral	HK$1.59B	―	-16.13%	―	10.08%	-118.45%
1638	44 Neutral	HK$1.21B	―		―	-56.67%	-41.38%
1668	38 Underperform	€1.36B	―		12.50%	―	―

KWG Group Holdings Corporate Events

KWG Group Holdings Announces Key Leadership Changes

KWG Group Holdings Limited, a company incorporated in the Cayman Islands, announced changes in its key personnel roles effective July 25, 2025. Mr. Kong Jianmin has resigned as an authorised representative to focus on his roles as executive director and chairman, while Mr. Chan Kin Wai has stepped down from his roles to concentrate on his position as deputy finance director. The company has appointed Mr. Cai Fengjia as an authorised representative and Mr. Chan Sze Yin as the company secretary, authorised representative, and process agent. These changes reflect the company’s strategic adjustments in its leadership structure.

KWG Group Reports Decline in June 2025 Pre-Sales

KWG Group Holdings Limited announced its unaudited operating statistics for June 2025, revealing a pre-sales value of RMB653 million, which marks a 34% year-on-year decrease. The pre-sales area also saw a significant decline of 61.7% compared to the previous year. These figures, based on preliminary internal data, highlight challenges in the company’s sales performance, urging investors to exercise caution and seek professional advice.

KWG Group Holdings Enhances Governance with New Nomination Committee

KWG Group Holdings Limited has established a Nomination Committee as part of its governance structure. The committee is composed primarily of independent non-executive directors and is responsible for overseeing the nomination process for board members. This move is expected to enhance the company’s governance practices by ensuring a diverse and independent board, which could positively impact its decision-making processes and stakeholder confidence.

KWG Group Reports Decline in May 2025 Pre-Sales

KWG Group Holdings Limited reported a significant decline in its unaudited operating statistics for May 2025, with a 37.5% year-on-year decrease in pre-sales value amounting to RMB738 million and a 61.1% decrease in pre-sales area. These figures highlight potential challenges in the real estate market and may impact investor confidence, prompting caution when dealing with the company’s securities.

KWG Group Holdings Secures Shareholder Approval at AGM

KWG Group Holdings Limited announced the successful passing of all proposed resolutions at its Annual General Meeting held on June 3, 2025. Key resolutions included the re-election of directors, re-appointment of the independent auditor, and granting of general mandates to issue and buy-back shares. This outcome reflects strong shareholder support and positions the company for continued strategic operations and governance.

KWG Group Holdings Renews ICP Property Lease Agreement

KWG Group Holdings Limited, a company incorporated in the Cayman Islands, has announced the renewal of a property lease agreement. The agreement involves the ICP Property in Guangzhou, China, and is a continuing connected transaction due to the involvement of Mr. Kong, an executive director and CEO of the company, who indirectly owns the lessee. The lease agreement is subject to certain reporting and review requirements under the Hong Kong Listing Rules but does not require independent shareholder approval.

KWG Group Reports Significant Decline in April 2025 Pre-Sales

KWG Group Holdings Limited reported unaudited operating statistics for April 2025, revealing a significant decline in pre-sales value and area compared to the previous year. The pre-sales value dropped by 47.5% to RMB509 million, and the pre-sales area decreased by 51.5% to approximately 26,600 square meters, indicating potential challenges in market demand or operational performance.