Kwung's Holdings Limited (1925) AI Stock Analysis

• Market Cap: HK$502.25M
• Dividend Yield: 7.56%
• Average Volume (3M): 59.67K
• Price to Earnings (P/E): 5.1
• 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 ▲(20.00% 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: Positive
• Last Price: 1.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1925, the sentiment is Positive. The current price of 1.25 is above the 20-day moving average (MA) of 1.17, above the 50-day MA of 1.11, and above the 200-day MA of 1.20, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 71.17 is Negative, neither overbought nor oversold. The STOCH value of 84.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$706.97M	4.98	10.86%	10.99%	6.86%	18.44%
1925	74 Outperform	HK$502.25M	5.14	17.17%	7.56%	21.99%	11.36%
8512	73 Outperform	HK$321.47M	2.63	19.34%	―	-3.12%	1.92%
2023	66 Neutral	HK$378.69M	6.66	10.92%	―	11.10%	-4.38%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2177	61 Neutral	HK$452.89M	17.00	3.32%	19.53%	-9.26%	435.33%
1962	60 Neutral	HK$295.66M	9.85	3.77%	10.67%	-6.67%	-29.55%

Kwung's Holdings Limited Corporate Events

Kwung’s Aroma Holdings Faces Revenue Challenges Amid EU Anti-Dumping Duties

Kwung’s Aroma Holdings Limited reported a 6.7% increase in revenue for the first half of 2025, but experienced a significant drop in total comprehensive income and earnings per share by 55.7%. This decline is attributed to the European Commission’s imposition of a provisional anti-dumping duty of 70.9% on candle imports from China, which affects over 50% of the company’s sales in the European Union. The company is seeking legal advice on the matter, as this duty could significantly impact its revenue and profitability.

The most recent analyst rating on (HK:1925) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Kwung’s Holdings Limited stock, see the HK:1925 Stock Forecast page.

Kwung’s Aroma Faces EU Anti-Dumping Duty on Candle Imports

Kwung’s Aroma Holdings Limited announced that the European Commission has imposed a provisional anti-dumping duty of 70.9% on candle products imported from China, affecting the company’s subsidiaries. This duty could significantly impact the company’s revenue and profits, as more than half of its sales come from the European Union. The company is currently seeking legal advice and will provide further updates as necessary.

The most recent analyst rating on (HK:1925) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Kwung’s Holdings Limited stock, see the HK:1925 Stock Forecast page.

Kwung’s Aroma Holdings to Review Interim Financials and Dividend

Kwung’s Aroma Holdings Limited has announced a board meeting scheduled for August 29, 2025, to discuss and approve the unaudited financial results for the first half of the year ending June 30, 2025. The meeting will also consider the potential payment of a dividend, which could impact shareholder returns and reflect the company’s financial health.