Kidsland International Holdings Limited (2122) AI Stock Analysis

• Market Cap: HK$320.72M
• Dividend Yield: N/A
• Average Volume (3M): 17.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: -15.54%
• EPS Growth: 16.04%
• Country: HK
• Employees: 1,005
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.07
• Shares Outstanding: 1,105,914,300
• 10 Day Avg. Volume: 2,295,400
• 30 Day Avg. Volume: 17,859,499
• PEG Ratio: 0.05
• Price to Book (P/B): -0.40
• Price to Sales (P/S): 0.04
• P/FCF Ratio: -3.32
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.50 ▲(72.41% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, negative profitability, and liquidity issues. While technical analysis shows some positive momentum, the valuation remains unattractive due to negative earnings and the absence of a dividend yield. These factors collectively suggest a cautious outlook for the stock.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance product offerings and attract a loyal customer base, supporting long-term revenue growth and market position.

Diverse Revenue Streams

A diversified revenue model reduces dependency on a single channel, providing resilience against market fluctuations and supporting stable growth.

Market Presence

A strong market presence in Asia-Pacific ensures accessibility and convenience for customers, bolstering long-term competitive advantage.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in maintaining market share and competitiveness, potentially impacting long-term financial stability.

Negative Profitability

Consistent negative profitability suggests operational inefficiencies and challenges in cost management, threatening long-term viability.

Liquidity Issues

Volatile cash flows and lack of operational cash generation limit financial flexibility, posing risks to ongoing operations and growth initiatives.

Kidsland International Holdings Limited Business Overview & Revenue Model

Company Description

Kidsland International Holdings Limited, an investment holding company, engages in trading and selling toys and related lifestyle products in Macau, Mainland China, and Hong Kong. The company offers its products under the Lego, Silverlit, BANDAI, FAO Schwarz, MGA, Spin Master, SIKU, Schleich, BRIO, Bakugan, LOL Suprise, little tikes, OXO, Discovery, TOPModel, TOMY, and Sterntaler; and Little Tektronix, The Sembel family, Revensburger, Milu, K's Kids, and other brands. As of December 31, 2021, the company operated 627 self-operated retail points of sale, which consisted of retail shops and consignment counters; 521 distributors; 12 hypermarket and supermarket chains; 21 online stores; and 6 online key accounts. It also invests in trademarks. The company was founded in 2001 and is headquartered in Beijing, China.

How the Company Makes Money

Kidsland International Holdings Limited generates revenue through multiple streams, primarily from the sale of children's products in retail and wholesale markets. The company operates its own branded stores and also collaborates with various retailers, allowing it to reach a broader audience. Key revenue streams include direct sales from physical stores, online sales through e-commerce platforms, and wholesale transactions with third-party retailers. Additionally, Kidsland benefits from strategic partnerships with well-known international brands, which enhances its product offerings and attracts a loyal customer base. Seasonal promotions, marketing campaigns, and participation in industry trade shows further contribute to revenue growth by increasing brand visibility and driving sales.

Kidsland International Holdings Limited Financial Statement Overview

Summary

Kidsland International Holdings Limited is facing significant financial challenges, with declining revenues, negative profitability, and liquidity issues. The negative equity position and inconsistent cash flows highlight severe financial distress.

Income Statement

Kidsland International Holdings Limited has experienced declining revenues and profitability. The gross profit margin has decreased from previous years, and the company has reported negative EBIT and net income consistently. This indicates challenges in maintaining operational efficiency and profitability.

Balance Sheet

The balance sheet shows a negative stockholders' equity as of the latest period, indicating financial distress. The debt-to-equity ratio is negative due to the negative equity, highlighting potential solvency issues. The equity ratio has significantly deteriorated over recent years, pointing to increased financial risk.

Cash Flow

Cash flow analysis reveals volatility, with operating cash flow dropping to zero in the latest period. The free cash flow has also been inconsistent, leading to concerns about the company's ability to generate cash from its core operations. The lack of positive cash flow from operations is a significant red flag.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	903.31M	974.49M	1.16B	1.14B	1.47B	1.37B
Gross Profit	244.47M	285.85M	344.55M	407.06M	612.79M	503.30M
EBITDA	-144.82M	-137.21M	-76.93M	-57.83M	125.90M	15.46M
Net Income	-189.29M	-202.15M	-210.50M	-184.23M	2.08M	-130.10M
Balance Sheet
Total Assets	363.93M	454.22M	580.75M	757.06M	907.15M	865.16M
Cash, Cash Equivalents and Short-Term Investments	19.89M	16.64M	21.94M	18.49M	19.98M	48.33M
Total Debt	245.06M	335.52M	254.48M	206.53M	181.80M	162.39M
Total Liabilities	433.14M	538.12M	467.47M	436.48M	426.00M	378.44M
Stockholders Equity	-74.87M	-89.79M	107.01M	313.75M	471.84M	478.31M
Cash Flow
Free Cash Flow	1.67M	-10.85M	35.34M	59.61M	56.48M	95.95M
Operating Cash Flow	12.56M	5.69M	49.28M	87.04M	85.52M	129.18M
Investing Cash Flow	-10.70M	-16.02M	-13.83M	-27.28M	-29.41M	-32.47M
Financing Cash Flow	-4.67M	4.80M	-32.16M	-62.08M	-84.08M	-78.26M

Kidsland International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2122, the sentiment is Positive. The current price of 0.29 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.25, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.77 is Neutral, neither overbought nor oversold. The STOCH value of 66.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2122.

Kidsland International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9896	64 Neutral	HK$47.87B	20.50	20.87%	3.04%	13.14%	-19.58%
8473	63 Neutral	HK$134.40M	52.17	2.17%	51.67%	-11.32%	-74.44%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1711	48 Neutral	HK$92.80M	-2.85	-87.26%	―	-12.97%	-20.77%
2122	45 Neutral	HK$320.72M	-1.21	―	―	-15.54%	16.04%
1759	44 Neutral	HK$237.60M	-18.71	-3.11%	―	50.72%	-434.09%
1939	44 Neutral	HK$655.21M	-34.64	-7.74%	―	85.29%	39.63%

Kidsland International Holdings Limited Corporate Events

Kidsland Partners with Jazwares to Launch Hello Kitty Toys in China

Kidsland International Holdings Limited has entered into a strategic partnership with Jazwares, a Berkshire Hathaway toy company, to launch the ‘HELLO KITTY AND FRIENDS’ toy line in mainland China. This collaboration aims to enhance Kidsland’s IP ecosystem and expand its presence in the all-age market by offering diverse and trendy toy options. The partnership is expected to strengthen Kidsland’s market position by enriching its portfolio with innovative products and providing Chinese consumers with a wider range of international toy brands.

Kidsland International Updates Share Option Schemes in Annual Report

Kidsland International Holdings Limited has issued a supplemental announcement regarding its annual report for the year ended December 31, 2024, focusing on its Share Option Schemes. The announcement clarifies that the Post-IPO Share Option Scheme has 80,000,000 shares available for issuance, representing approximately 7.23% of issued shares, while the Pre-IPO Share Option Scheme has 26,300,000 shares available, representing about 2.38% of issued shares. This update provides stakeholders with a clearer understanding of the company’s share option allocations, potentially impacting investor perceptions and future financial planning.

Kidsland Ventures into Booming TCG Market with Pokémon Collaboration

Kidsland International Holdings Limited has announced its strategic entry into the trading card game (TCG) market through a collaboration with Pokémon, launching the first Pokémon TCG Official Gym in Beijing. This move taps into the booming TCG industry, valued at over $12 billion globally, with China experiencing rapid growth. The collaboration aims to create an immersive experience space integrating retail, card battles, and social interaction, aligning with Kidsland’s mission to enhance play life quality. Kidsland plans to expand its partnerships with both international and domestic IPs to introduce more quality TCG products to the Chinese market.