Kwung's Holdings Limited (1925) AI Stock Analysis

• Market Cap: HK$473.90M
• Dividend Yield: 7.69%
• Average Volume (3M): 171.33K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.12
• Revenue Growth: 22.46%
• EPS Growth: 91.73%
• Country: HK
• Employees: 614
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Household & Personal Products
• EPS (TTM): 0.18
• Shares Outstanding: 405,042,000
• 10 Day Avg. Volume: 257,600
• 30 Day Avg. Volume: 171,333
• PEG Ratio: 1.07
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.89
• 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: 68 Neutral
• Price Target: ―

Kwung's Holdings Limited shows strong financial performance with robust revenue growth and profitability, though cash flow management needs improvement. The technical indicators are mixed, reflecting uncertainty in market trends. However, the stock's attractive valuation, with a low P/E ratio and high dividend yield, supports its appeal. Overall, while there are some risks, the valuation and financial performance provide a solid basis for investment.

Kwung's Holdings Limited Business Overview & Revenue Model

Company Description

Kwung's Holdings Limited (1925) is a diversified investment holding company primarily engaged in the provision of financial services and investments. The company operates through various sectors, including asset management, real estate, and securities trading, offering a range of tailored financial solutions and investment opportunities to its clients.

How the Company Makes Money

Kwung's Holdings Limited generates revenue through a multi-faceted approach, leveraging its core sectors. In asset management, the company earns management fees from overseeing and advising on investment portfolios for individual and institutional clients. In real estate, revenues are generated through the acquisition, development, and leasing of properties, as well as through capital appreciation of real estate investments. Securities trading provides another revenue stream, with the company engaging in proprietary trading and earning commissions on client trades. Strategic partnerships and joint ventures in these sectors enhance its earnings potential, enabling expansion into new markets and offerings.

Kwung's Holdings Limited Financial Statement Overview

Summary

Kwung's Holdings Limited demonstrates solid growth and profitability trends, particularly in revenue and net profit margins. The balance sheet reflects a healthy equity position, though rising liabilities need monitoring. Cash flow management poses a challenge, with zero operating cash flow recently, which could affect liquidity. The company should focus on improving cash generation to sustain its growth trajectory.

Income Statement

Kwung's Holdings Limited shows a strong revenue growth with a 24.2% increase in the latest year and consistent gross profit margins around 22-23%. The net profit margin improved significantly to 11.8% from 7.5% previously, indicating enhanced profitability. However, there is room for improvement in EBIT and EBITDA margins, which remain moderate at 12.8% and 10.9% respectively.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.55, reflecting moderate leverage. The return on equity is robust at 22.4%, showcasing effective utilization of equity to generate profits. The equity ratio stands at 52.8%, indicating a balanced capital structure. However, the rising liabilities over the years could be a potential concern if not managed well.

Cash Flow

The cash flow situation highlights some concerns with zero operating cash flow in the latest year, impacting the free cash flow. Historical free cash flow growth is volatile, and the absence of cash flow metrics in the latest report limits a comprehensive assessment. A stronger cash conversion from profits is needed to enhance financial flexibility.

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
	EBIT
128.54M	78.85M	50.58M	53.03M	47.50M
	EBITDA
108.76M	101.75M	61.95M	62.29M	55.53M
	Net Income Common Stockholders
118.60M	60.65M	52.60M	49.00M	40.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
399.90M	284.36M	352.36M	208.86M	171.63M
	Total Assets
1.00B	754.22M	662.35M	546.49M	396.11M
	Total Debt
290.64M	117.12M	135.20M	82.78M	5.93M
	Net Debt
-64.87M	-66.64M	-8.02M	-116.96M	-104.80M
	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
0.00	-9.65M	95.77M	-46.09M	24.79M
	Operating Cash Flow
0.00	75.32M	114.45M	-32.94M	35.89M
	Investing Cash Flow
0.00	30.76M	-247.78M	39.99M	-71.24M
	Financing Cash Flow
0.00	-70.30M	48.67M	75.96M	82.72M

Kwung's Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 1.17 is below the 20-day moving average (MA) of 1.21, below the 50-day MA of 1.25, and below the 200-day MA of 1.26, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.51 is Neutral, neither overbought nor oversold. The STOCH value of 4.17 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
1925	68 Neutral	HK$473.90M	3.69	24.41%	7.69%	22.46%	91.73%
Sector *	65 Neutral	$8.82B	14.91	4.71%	6.22%	3.60%	-2.66%
8416	56 Neutral	HK$34.13M	8.71	-9.16%	24.69%	-11.05%	-222.58%
3318	51 Neutral	HK$1.93B	97.28	0.59%	―	-21.05%	-87.68%
1775	47 Neutral	HK$78.68M	―	-47.25%	―	20.36%	-38.36%
2222	46 Neutral	HK$410.89M	1.33	-3.70%	―	-0.07%	-148.33%

Kwung's Holdings Limited Corporate Events

Kwung’s Aroma Holdings Reports Strong Financial Growth in 2024

Kwung’s Aroma Holdings Limited reported a significant financial performance for the year ended December 31, 2024, with a 24.1% increase in revenue to RMB1,001.2 million and a 95.2% rise in profit to RMB118.7 million. The company attributes this growth to securing more purchase orders from existing customers, gaining new customers, and benefiting from favorable currency exchange rates. The company is also investing in research and development, collaborating with Ningbo Institute of Technology to explore new product technologies, which is expected to enhance long-term business collaborations.

Kwung’s Aroma Holdings Projects Significant Profit and Revenue Growth for 2024

Kwung’s Aroma Holdings Limited has announced a significant increase in its net profit and revenue for the year ended December 31, 2024. The net profit is expected to rise by approximately 93% to RMB118 million, while revenue is anticipated to grow by 24% to RMB1,003 million. This growth is attributed to several factors, including the gain from the disposal of a subsidiary, increased purchase orders from existing customers, acquisition of new customers, and favorable currency exchange rates. The final audited financial results may differ, and stakeholders are advised to refer to the upcoming annual results announcement for detailed information.

Kwung’s Aroma Holdings Schedules Board Meeting to Review Financials and Dividend

Kwung’s Aroma Holdings Limited has announced a board meeting scheduled for March 31, 2025, to discuss and approve the company’s consolidated financial statements for the year ending December 31, 2024. The meeting will also address the recommendation of a final dividend, potential closure of the member register, and preparations for the upcoming annual general meeting, which could impact the company’s financial strategies and stakeholder interests.