Honworld Group Ltd. (2226) AI Stock Analysis

• Market Cap: HK$300.95M
• Dividend Yield: N/A
• Average Volume (3M): 84.43K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.11
• Revenue Growth: -0.28%
• EPS Growth: 1.40%
• Country: HK
• Employees: 509
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.47
• Shares Outstanding: 578,750,000
• 10 Day Avg. Volume: 31,700
• 30 Day Avg. Volume: 84,433
• PEG Ratio: 0.29
• Price to Book (P/B): -0.11
• Price to Sales (P/S): 1.19
• P/FCF Ratio: -15.55
• 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

• Rating: 41 Neutral
• Price Target: HK$0.50 ▼(-3.85% Downside)

Honworld Group Ltd.'s overall stock score is primarily impacted by its poor financial performance, characterized by significant operating losses and negative equity. The technical analysis further indicates a bearish trend, while the valuation metrics highlight the company's unprofitability. These factors collectively suggest a high-risk investment with limited upside potential.

Honworld Group Ltd. Business Overview & Revenue Model

Company Description

Honworld Group Ltd. (2226) is a leading manufacturer and distributor of condiment products, primarily focusing on the production and sale of premium Chinese cooking wine. The company operates within the food industry sector, emphasizing high-quality, traditional, and authentic flavors that cater to both domestic and international markets.

How the Company Makes Money

Honworld Group Ltd. generates revenue primarily through the sale of its premium Chinese cooking wine products. The company leverages its established brand reputation and extensive distribution network to reach a wide range of customers, including wholesalers, retailers, and direct consumers. By focusing on product quality and authenticity, Honworld maintains a competitive edge in the condiment market. The company may also engage in strategic partnerships to expand its market reach and enhance its product offerings, although specific partnership details are not disclosed.

Honworld Group Ltd. Financial Statement Overview

Summary

Honworld Group Ltd. is facing substantial financial difficulties, with declining revenue, consistent operating losses, negative equity, and poor cash flow management. The company's financial instability and heavy reliance on debt pose significant risks to its future viability and growth prospects.

Income Statement

Honworld Group Ltd. has experienced a significant decline in financial performance over recent years, with consistent negative EBIT, EBITDA, and net income figures. The Gross Profit Margin has been positive, but overall profitability is severely impacted by high operating losses. Revenue has declined significantly from 2019 to 2024, indicating a challenging business environment and diminished market position.

Balance Sheet

The balance sheet reveals negative stockholders' equity, indicating financial distress and potential insolvency risks. The Debt-to-Equity Ratio cannot be calculated due to negative equity, and the company is heavily leveraged with increasing total debt. These factors suggest a precarious financial position with limited stability and high financial risk.

Cash Flow

Cash flow from operations has been negative, and the company has failed to generate free cash flow. The absence of positive cash flow metrics raises concerns about liquidity and the company's ability to sustain operations without external financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	275.08M	258.78M	271.60M	252.67M	226.33M
Gross Profit	68.91M	74.11M	74.82M	68.51M	45.60M
EBITDA	-32.09M	-74.66M	-74.07M	-153.91M	-59.62M
Net Income	-516.56M	-524.32M	-486.34M	-318.45M	-845.29M
Balance Sheet
Total Assets	1.05B	1.11B	1.12B	1.19B	1.21B
Cash, Cash Equivalents and Short-Term Investments	6.35M	10.12M	9.81M	31.02M	8.44M
Total Debt	3.31B	2.81B	2.21B	1.76B	1.50B
Total Liabilities	3.90B	3.45B	2.93B	2.51B	2.21B
Stockholders Equity	-2.85B	-2.33B	-1.81B	-1.32B	-1.00B
Cash Flow
Free Cash Flow	-20.97M	-122.22M	-243.70M	-116.33M	-199.17M
Operating Cash Flow	-830.00K	-102.22M	-226.80M	-97.81M	-196.79M
Investing Cash Flow	-20.13M	-22.46M	-19.02M	-12.42M	81.33M
Financing Cash Flow	18.62M	126.05M	228.54M	131.75M	-53.31M

Honworld Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2226, the sentiment is Negative. The current price of 0.52 is above the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.55, and below the 200-day MA of 0.60, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.16 is Neutral, neither overbought nor oversold. The STOCH value of 30.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2226.

Honworld Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1837	71 Outperform	HK$2.49B	11.22	13.72%	3.36%	11.89%	27.80%
1767	68 Neutral	HK$280.00M	10.61	5.48%	0.82%	5.43%	-25.42%
1285	64 Neutral	HK$419.15M	8.76	4.62%	14.85%	2.82%	-22.62%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3999	49 Neutral	HK$619.88M	―	-0.32%	―	-2.20%	-120.05%
1262	41 Neutral	HK$412.81M	―	-23.87%	―	4.72%	79.88%
2226	41 Neutral	HK$300.95M	-0.54	―	―	-0.28%	1.40%

Honworld Group Ltd. Corporate Events

Honworld Group Reports Flat Revenue and Increased Losses in Interim Results

Honworld Group Limited reported its interim financial results for the six months ended June 30, 2025, revealing that revenue remained flat at RMB144.4 million compared to the same period in 2024. However, the company experienced a 10.7% decrease in gross profit to RMB42.1 million and a 1.6% increase in losses attributable to ordinary equity holders, amounting to RMB251.7 million. The board has decided not to recommend the payment of interim dividends for this period, reflecting ongoing financial challenges.

The most recent analyst rating on (HK:2226) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Honworld Group Ltd. stock, see the HK:2226 Stock Forecast page.

Honworld Group Ltd. Schedules Board Meeting to Review Interim Results

Honworld Group Ltd. has announced a board meeting scheduled for August 28, 2025, to discuss and approve the interim results for the first half of the year, potential interim dividend payments, and other business matters. This meeting is significant as it will provide insights into the company’s financial performance and strategic decisions, impacting stakeholders and potentially influencing market perceptions.