Jiujiuwang Food International Limited (1927) AI Stock Analysis

• Market Cap: HK$106.92M
• Dividend Yield: N/A
• Average Volume (3M): 300.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -13.62%
• EPS Growth: -234.67%
• Country: HK
• Employees: 386
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Confectioners
• EPS (TTM): <0.01
• Shares Outstanding: 792,000,000
• 10 Day Avg. Volume: 345,000
• 30 Day Avg. Volume: 300,833
• PEG Ratio: 0.14
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -3.58
• 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: 48 Neutral
• Price Target: HK$0.13 ▼(-4.29% Downside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and profitability, and negative cash flows. Technical analysis suggests potential stability but also indicates bearish momentum. Valuation concerns are significant due to a negative P/E ratio and lack of dividend yield.

Positive Factors

Distribution Network

A robust distribution network enhances market penetration and accessibility, supporting long-term revenue stability and growth.

Market Diversification

Diversification across markets and products reduces dependency on a single revenue stream, mitigating risks and enhancing resilience.

Brand Loyalty

Strong brand loyalty can drive repeat sales and customer retention, providing a competitive edge and supporting long-term profitability.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market competitiveness and product demand, potentially impacting future growth and profitability.

Negative Cash Flow

Consistent negative cash flow suggests liquidity issues, limiting the company's ability to invest in growth and manage financial obligations.

Declining Profit Margins

Shrinking profit margins reflect cost pressures and pricing challenges, which could undermine long-term profitability and market position.

Jiujiuwang Food International Limited Business Overview & Revenue Model

Company Description

Jiujiuwang Food International Limited, an investment holding company, engages in the manufacture and sale of confectionary products in the People's Republic of China, rest of Asia, Europe, and internationally. The company offers aerated, gum-based, hard, and tablet candies, as well as chocolate-made products. It is also involved in the marketing and sales activities. The company sells its products under Coolsa, Lalabo, and Jiujiuwang brands to distributors and end-consumers through e-commerce channels; and brands owned or licensed by OEM customers. Jiujiuwang Food International Limited was founded in 1999 and is headquartered in Jinjiang, China.

How the Company Makes Money

Jiujiuwang Food International Limited generates revenue through multiple streams, primarily from the sale of its packaged food products both in retail and wholesale markets. The company leverages its extensive distribution network to reach supermarkets, convenience stores, and online platforms, thereby maximizing its market penetration. Key revenue streams include direct sales to retailers, partnerships with distributors, and export operations to international markets. Additionally, Jiujiuwang Food may benefit from strategic collaborations with food service companies and restaurants, which serve as important channels for its products. The company's earnings are also bolstered by brand loyalty and marketing initiatives that enhance consumer awareness and drive sales.

Jiujiuwang Food International Limited Financial Statement Overview

Summary

Jiujiuwang Food International shows declining revenue and profitability, with a recent net loss and decreasing margins. The balance sheet is stable but high leverage and negative cash flows indicate financial strain.

Income Statement

Jiujiuwang Food International's income statement shows declining revenue and profitability trends over the past years. The company experienced a revenue decrease from 2020 to 2024, with the most recent year showing a net loss. Gross profit margin decreased from 31.8% in 2020 to 27.7% in 2024, and the EBIT margin dropped significantly from 18.4% to 1.6% in the same period. The declining trend in profitability and revenue raises concerns about the company's ability to maintain competitiveness in the market.

Balance Sheet

The balance sheet reveals a relatively stable equity base, with stockholders' equity increasing until 2023 but slightly declining in 2024. The debt-to-equity ratio remained consistent, showing a moderate level of leverage. However, the equity ratio has declined from 51.1% in 2019 to 54.4% in 2024 indicating a stronger equity position. The company maintains a stable asset base, but a high level of debt could pose a risk if profitability does not improve.

Cash Flow

Cash flow from operations has shown volatility, with the most recent year reporting zero operating cash flow. Free cash flow was negative for several years, indicating cash strain. The inability to generate positive free cash flow consistently raises concerns about the company's liquidity and operational efficiency. A positive cash flow trend is critical for supporting ongoing operations and funding future growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	296.00M	315.03M	351.77M	376.41M	409.82M	401.23M
Gross Profit	71.17M	87.38M	99.51M	111.85M	130.19M	127.76M
EBITDA	17.66M	30.54M	46.53M	59.31M	71.87M	91.06M
Net Income	-7.36M	-3.62M	4.92M	16.07M	27.29M	44.08M
Balance Sheet
Total Assets	663.13M	729.45M	707.87M	662.95M	618.68M	509.47M
Cash, Cash Equivalents and Short-Term Investments	21.26M	28.99M	30.00K	27.50M	36.20M	28.47M
Total Debt	244.09M	278.67M	274.33M	227.69M	213.41M	218.92M
Total Liabilities	261.81M	332.61M	307.91M	267.68M	238.63M	248.81M
Stockholders Equity	401.32M	396.84M	399.96M	395.27M	380.04M	260.66M
Cash Flow
Free Cash Flow	-12.17M	-24.75M	-25.83M	-14.89M	-66.04M	13.95M
Operating Cash Flow	12.42M	230.00K	-12.75M	42.73M	22.79M	23.99M
Investing Cash Flow	-24.68M	-24.95M	-12.88M	-57.49M	-88.63M	-9.74M
Financing Cash Flow	21.40M	18.16M	33.43M	5.64M	73.68M	-23.98M

Jiujiuwang Food International Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1927, the sentiment is Positive. The current price of 0.14 is below the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.14, and above the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.84 is Neutral, neither overbought nor oversold. The STOCH value of 96.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1927.

Jiujiuwang Food International Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1587	71 Outperform	HK$421.60M	9.20	8.56%	3.63%	3.24%	47.81%
2119	67 Neutral	HK$396.40M	8.30	9.28%	7.38%	4.61%	-23.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1927	48 Neutral	HK$106.92M	-13.76	-1.83%	―	-13.62%	-234.67%
1262	46 Neutral	HK$502.36M	-10.64	-23.87%	―	4.72%	79.88%
0060	43 Neutral	HK$108.65M	-5.61	-3.71%	―	-13.76%	-7.06%