Kwung's Holdings Limited (1925) AI Stock Analysis

• Market Cap: HK$433.39M
• Dividend Yield: 8.33%
• Average Volume (3M): 59.67K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.01
• Revenue Growth: 21.99%
• EPS Growth: 11.36%
• Country: HK
• Employees: 614
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.06
• Shares Outstanding: 405,042,000
• 10 Day Avg. Volume: 75,600
• 30 Day Avg. Volume: 59,666
• PEG Ratio: 0.04
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -7.33
• 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: 74 Outperform
• Price Target: HK$1.50 ▲(40.19% Upside)

Kwung's Holdings Limited benefits from strong financial performance and attractive valuation metrics, including a low P/E ratio and high dividend yield. However, technical indicators suggest the stock is currently overbought, which could lead to a short-term price correction. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.

Profitability

Improved profit margins reflect efficient cost management and pricing power, enhancing the company's ability to generate sustainable profits.

Equity Position

A strong equity base provides financial stability and flexibility, enabling the company to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Free Cash Flow

Negative free cash flow indicates challenges in cash generation, potentially limiting the company's ability to fund operations and growth without external financing.

Cash Conversion

A low cash conversion ratio suggests difficulties in turning profits into cash, which can impact liquidity and operational flexibility over time.

Debt Levels

Rising debt levels could lead to increased financial risk, affecting the company's ability to manage interest obligations and invest in growth.

Kwung's Holdings Limited Business Overview & Revenue Model

Company Description

Kwung's Holdings Limited (1925) is a Hong Kong-based investment holding company that operates in various sectors, including property investment, trading, and manufacturing. The company primarily focuses on the acquisition and management of properties for rental income while also engaging in trading activities involving consumer goods and manufacturing processes that cater to diverse markets. With a well-established presence in the region, Kwung's Holdings aims to leverage its expertise to enhance its operational efficiency and expand its portfolio.

How the Company Makes Money

Kwung's Holdings Limited generates revenue through multiple streams. Primarily, the company earns income from rental properties, which are leased to commercial and residential tenants, providing a stable cash flow. Additionally, the trading segment of the business involves sourcing and selling consumer goods, contributing to its revenue through wholesale and retail channels. Manufacturing operations also add to the revenue by producing goods for both local and international markets. Strategic partnerships with suppliers and retailers enhance its market reach and operational capabilities, while effective asset management and property development initiatives further bolster its earnings potential.

Kwung's Holdings Limited Financial Statement Overview

Summary

Kwung's Holdings Limited shows strong revenue and profit growth with improved margins and a solid equity position. However, negative free cash flow raises liquidity concerns, necessitating a focus on cash generation and debt management.

Income Statement

Kwung's Holdings Limited demonstrated strong revenue growth, with a 24.1% increase from 2023 to 2024. The gross profit margin improved to 22.4%, and the net profit margin increased to 11.8%, indicating enhanced profitability. EBIT and EBITDA margins also showed positive trends, reflecting efficient cost management. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.55, indicating moderate leverage. The equity ratio stands at 52.8%, showcasing a strong equity base. Return on equity improved to 22.4%, reflecting efficient use of equity to generate profits. However, the increase in total debt warrants monitoring for future leverage risks.

Cash Flow

Kwung's Holdings Limited experienced a decline in free cash flow, with a negative free cash flow of -66.5 million in 2024. The operating cash flow to net income ratio is low at 0.04, suggesting challenges in converting profits into cash. Despite this, the company has managed its financing activities effectively, maintaining liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.02B	1.00B	806.55M	718.67M	631.39M	472.18M
Gross Profit	225.88M	224.19M	162.13M	134.40M	121.13M	108.15M
EBITDA	110.10M	108.76M	101.75M	60.39M	62.29M	55.53M
Net Income	90.26M	118.60M	60.65M	52.60M	49.00M	40.85M
Balance Sheet
Total Assets	1.11B	1.00B	754.22M	662.35M	546.49M	396.11M
Cash, Cash Equivalents and Short-Term Investments	525.93M	399.90M	284.36M	349.78M	208.86M	170.74M
Total Debt	396.70M	290.64M	117.12M	135.20M	82.78M	5.93M
Total Liabilities	552.60M	472.54M	308.67M	234.81M	171.71M	70.37M
Stockholders Equity	552.66M	529.95M	444.76M	426.91M	374.21M	325.21M
Cash Flow
Free Cash Flow	-125.94M	-66.46M	-9.65M	95.77M	-46.09M	24.79M
Operating Cash Flow	-109.47M	5.00M	75.32M	114.45M	-32.94M	35.89M
Investing Cash Flow	195.11M	40.42M	30.76M	-247.78M	39.99M	-71.24M
Financing Cash Flow	47.97M	103.35M	-70.30M	48.67M	75.96M	82.72M

Kwung's Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.07
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1925, the sentiment is Neutral. The current price of 1.07 is below the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.10, and below the 200-day MA of 1.14, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.81 is Neutral, neither overbought nor oversold. The STOCH value of 45.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1925.

Kwung's Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3828	77 Outperform	HK$670.53M	4.73	10.86%	10.87%	6.86%	18.44%
1925	74 Outperform	HK$433.39M	4.48	17.17%	8.33%	21.99%	11.36%
8512	73 Outperform	HK$312.29M	2.48	19.34%	―	-3.12%	1.92%
2023	66 Neutral	HK$359.01M	6.31	10.92%	―	11.10%	-4.38%
2177	64 Neutral	HK$554.09M	20.42	3.32%	14.97%	-9.26%	435.33%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1962	60 Neutral	HK$295.66M	9.85	3.77%	10.32%	-6.67%	-29.55%

Kwung's Holdings Limited Corporate Events

Kwung’s Aroma Holdings Clarifies Share Option Scheme Details

Kwung’s Aroma Holdings Limited issued a supplemental and clarification announcement regarding its annual report for the year ended 31 December 2024. The announcement provided additional information on the share option scheme, clarifying that no payment is required for application or acceptance of the share options, except for a nominal consideration of HK$1. This update aims to rectify a clerical error in a previous announcement, ensuring accurate information for shareholders and potential investors.

Kwung’s Aroma Holdings Updates Share Option Scheme Details

Kwung’s Aroma Holdings Limited has issued a supplemental announcement to its 2024 Annual Report, detailing additional information about its Share Option Scheme. As of the end of 2024, there were 40 million share options available for grant, representing approximately 9.9% of the issued shares. This update does not alter any other information in the Annual Report, ensuring stakeholders that the company’s operational and strategic details remain consistent.

Kwung’s Aroma Holdings Declares Special Dividend

Kwung’s Aroma Holdings Limited has announced a special cash dividend of HKD 0.05 per share, with the ex-dividend date set for December 8, 2025, and payment scheduled for December 23, 2025. This announcement reflects the company’s decision to distribute additional profits to shareholders, potentially enhancing shareholder value and signaling financial stability.

Kwung’s Aroma Holdings Declares Special Dividend

Kwung’s Aroma Holdings Limited has announced the declaration and payment of a special dividend of HK$0.05 per ordinary share, reflecting the company’s appreciation for shareholder support. The company assures that the dividend payment will not adversely affect its financial position or alter its share capital structure, and it is scheduled to be paid on December 23, 2025, to shareholders on record as of December 11, 2025.

Kwung’s Aroma Expands Production Facilities with New Tenancy Agreements

Kwung’s Aroma Holdings Limited has announced two tenancy agreements through its subsidiaries Ningbo Kwung’s and Ningbo Fenyuan with Heyi Life Culture to lease properties in Ningbo City, Zhejiang Province, for use as production facilities. These agreements, effective from November 1, 2025, to November 30, 2026, signify an expansion of the company’s operational capacity, potentially enhancing its production capabilities and market presence in the home decoration industry.