Kwung's Holdings Limited (1925) AI Stock Analysis

• Market Cap: HK$405.04M
• Dividend Yield: 9%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 4.1
• Beta (1Y): <0.01
• Revenue Growth: 21.99%
• EPS Growth: 11.36%
• Country: HK
• Employees: 614
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Household & Personal Products
• EPS (TTM): 0.06
• Shares Outstanding: 405,042,000
• 10 Day Avg. Volume: 3,078,342
• 30 Day Avg. Volume: 1,319,428
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$1.50
• Price Target Upside: 50.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• Price Target: HK$1.50 ▲(50.00% Upside)

Kwung's Holdings Limited's strong financial performance and attractive valuation are offset by technical indicators suggesting bearish momentum. The low P/E ratio and high dividend yield are significant positives, but liquidity concerns and negative market momentum weigh on the overall score.

Kwung's Holdings Limited Business Overview & Revenue Model

Company Description

Kwung's Holdings Limited, an investment holding company, designs, manufactures, supplies, and trades in home fragrance, decoration, and other products. It offers home fragrance candles and fragrance diffusers; and wax, metal, glass, and aromatherapy products. It also engages in the provision of inspection and testing services; wholesale and retail of household items and handicrafts; and import and export of self-employed or agent goods and technologies. The company sells its products through self-operated stores and online. It operates in France, the United Kingdom, the Netherlands, Germany, Canada, Australia, and the People's Republic of China. The company was incorporated in 2018 and is headquartered in Ningbo, the People's Republic of China. Kwung's Holdings Limited is a subsidiary of King Harmony Limited.

How the Company Makes Money

Kwung's Holdings generates revenue through multiple streams. Primarily, the company earns income from its property development projects by selling residential and commercial units, as well as from leasing properties which provide a steady rental income. Additionally, the company invests in financial services, earning returns on investments in stocks, bonds, and other financial instruments. Trading of consumer goods also contributes to revenue, where the company engages in the distribution and sales of various products. Strategic partnerships with other firms in real estate and finance further enhance its revenue potential, allowing for collaborative projects and shared resources that optimize profitability.

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 and low operating cash flow to net income ratio highlight potential liquidity concerns.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.00B	806.55M	718.67M	631.39M	472.18M
Gross Profit	224.19M	162.13M	134.40M	121.13M	108.15M
EBITDA	108.76M	101.75M	61.95M	62.29M	55.53M
Net Income	118.60M	60.65M	52.60M	49.00M	40.85M
Balance Sheet
Total Assets	1.00B	754.22M	662.35M	546.49M	396.11M
Cash, Cash Equivalents and Short-Term Investments	399.90M	284.36M	352.36M	208.86M	171.63M
Total Debt	290.64M	117.12M	135.20M	82.78M	5.93M
Total Liabilities	472.54M	308.67M	234.81M	171.71M	70.37M
Stockholders Equity	529.95M	444.76M	426.91M	374.21M	325.21M
Cash Flow
Free Cash Flow	-66.46M	-9.65M	95.77M	-46.09M	24.79M
Operating Cash Flow	5.00M	75.32M	114.45M	-32.94M	35.89M
Investing Cash Flow	40.42M	30.76M	-247.78M	39.99M	-71.24M
Financing Cash Flow	103.35M	-70.30M	48.67M	75.96M	82.72M

Kwung's Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1925, the sentiment is Negative. The current price of 1 is below the 20-day moving average (MA) of 1.15, below the 50-day MA of 1.21, and below the 200-day MA of 1.25, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 21.96 is Positive, neither overbought nor oversold. The STOCH value of 6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
8512	75 Outperform	HK$275.55M	2.26	19.34%	―	-3.12%	1.92%
3828	73 Outperform	HK$677.82M	4.78	10.86%	10.75%	6.86%	18.44%
1925	70 Neutral	HK$405.04M	4.15	17.17%	9.00%	21.99%	11.36%
Sector *	63 Neutral	$20.52B	14.80	-2.68%	3.09%	1.95%	-4.76%
2023	62 Neutral	HK$393.44M	6.91	10.92%	―	11.10%	-4.38%
1962	60 Neutral	HK$308.38M	10.28	3.77%	9.90%	-6.67%	-29.55%
2177	56 Neutral	HK$376.58M	14.13	3.32%	22.03%	-9.26%	435.33%

Kwung's Holdings Limited Corporate Events

Kwung’s Aroma Holdings Announces Director Resignation and Audit Committee Change

Kwung’s Aroma Holdings Limited announced the resignation of Mr. SHAO Patrick as a non-executive director, effective from July 7, 2025, as he intends to focus on other endeavors. The company expressed gratitude for his contributions and confirmed there were no disagreements with the board. Following his resignation, Mr. SHAO will also step down from the audit committee, with Ms. XU Qiong appointed as his replacement, indicating a seamless transition in the company’s governance structure.

Kwung’s Aroma Holdings Announces Board and Committee Roles

Kwung’s Aroma Holdings Limited has announced the composition of its board of directors and the roles within its three established committees: audit, nomination, and remuneration. This organizational structure is crucial for the company’s governance and strategic decision-making, potentially impacting its operational efficiency and stakeholder confidence.

Kwung’s Aroma Holdings Passes All Resolutions at AGM

Kwung’s Aroma Holdings Limited announced that all proposed resolutions at their Annual General Meeting held on June 20, 2025, were passed. These resolutions included the re-election of directors, the re-appointment of the auditor, and granting mandates for share issuance and repurchase. The successful passing of these resolutions indicates a stable governance structure and strategic flexibility for the company, potentially strengthening its market position and providing confidence to its stakeholders.

Kwung’s Aroma Holdings Clarifies AGM Notice Error

Kwung’s Aroma Holdings Limited has issued a clarification regarding a clerical error in their AGM Notice dated 28 May 2025. The correction pertains to the re-appointment of the company’s auditor and the authorization for the board to fix the auditor’s remuneration, while all other information remains unchanged.

Kwung’s Aroma Holdings Schedules AGM to Discuss Key Resolutions

Kwung’s Aroma Holdings Limited has announced its upcoming annual general meeting (AGM) scheduled for June 20, 2025, in Ningbo City, Zhejiang Province, PRC. The meeting will address several key resolutions, including the approval of financial statements for the year ended December 31, 2024, re-election of directors, appointment of auditors, and authorization for the board to issue additional shares. These resolutions are crucial for the company’s governance and strategic planning, potentially impacting its market operations and shareholder value.