Honworld Group Ltd. (2226) AI Stock Analysis

• Market Cap: HK$387.76M
• Dividend Yield: N/A
• Average Volume (3M): 124.00K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.07
• Revenue Growth: 4.26%
• EPS Growth: 3.24%
• Country: HK
• Employees: 509
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Packaged Foods
• EPS (TTM): -0.97
• Shares Outstanding: 578,750,000
• 10 Day Avg. Volume: 60,850
• 30 Day Avg. Volume: 124,000
• PEG Ratio: -0.33
• Price to Book (P/B): -0.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.14
• 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: 46 Neutral
• Price Target: HK$0.50 ▼(-24.24%Downside)

Honworld Group Ltd.'s overall score is significantly impacted by its poor financial performance, including negative profitability and cash flow issues. While technical indicators are relatively neutral, the lack of profitability negatively influences the valuation score. The absence of earnings call and corporate event data means these components were excluded from the evaluation.

Honworld Group Ltd. Business Overview & Revenue Model

Company Description

Honworld Group Ltd. (2226) is a leading Chinese company specializing in the production and distribution of condiment products, with a particular focus on the manufacturing of soy sauce. The company operates within the food production sector, offering a diverse range of condiments to cater to both domestic and international markets. Honworld Group Ltd. is recognized for its high-quality products, which are manufactured using traditional fermentation methods combined with modern technology.

How the Company Makes Money

Honworld Group Ltd. generates revenue primarily through the sale of its condiment products, especially soy sauce. The company's revenue model is centered around producing and distributing a wide variety of high-quality condiments, which are sold to retailers, wholesalers, and directly to consumers. Key revenue streams include domestic sales within China and exports to international markets. The company may also engage in strategic partnerships or collaborations with other food production companies to enhance its distribution network and market reach. Factors contributing to its earnings include its strong brand reputation, established distribution channels, and the growing demand for premium condiment products both in China and abroad.

Honworld Group Ltd. Financial Statement Overview

Summary

Honworld Group Ltd. is facing substantial financial difficulties, as indicated by 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. Immediate strategic changes and financial restructuring seem necessary to address these critical issues.

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	-108.45M
Net Income	-516.56M	-524.32M	-495.32M	-466.56M	-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: Neutral
• Last Price: 0.66
• 50DMA: Negative
• 100DMA: Positive
• 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:2226, the sentiment is Neutral. The current price of 0.66 is below the 20-day moving average (MA) of 0.69, below the 50-day MA of 0.67, and above the 200-day MA of 0.65, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.19 is Neutral, neither overbought nor oversold. The STOCH value of 82.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	HK$1.69B	8.20	12.91%	5.19%	9.63%	20.08%
1767	71 Outperform	HK$335.00M	9.08	8.18%	0.68%	>-0.01%	16.04%
1285	68 Neutral	HK$427.45M	7.24	5.59%	9.80%	4.97%	-16.24%
Sector *	61 Neutral	HK$19.81B	12.02	0.81%	5.13%	2.72%	-47.45%
3999	52 Neutral	HK$619.88M	28.91	0.92%	―	-8.33%	-69.38%
1262	47 Neutral	HK$417.17M	―	-42.82%	―	10.98%	29.31%
2226	46 Neutral	HK$387.76M	―		―	4.26%	3.24%

Honworld Group Ltd. Corporate Events

Honworld Group Ltd. Enhances Governance with Revised Nomination Committee Terms

Honworld Group Ltd. has revised the terms of reference for its Nomination Committee, emphasizing the inclusion of independent non-executive directors and gender diversity. This move is aimed at strengthening the governance structure and ensuring diverse perspectives in decision-making, which could enhance the company’s industry positioning and stakeholder confidence.

Honworld Group Announces Executive Leadership Changes

Honworld Group Limited announced significant changes in its executive leadership, with Mr. Chen Wei resigning from his roles as executive director, chairman of the board, and authorized representative, effective June 3, 2025. Mr. Huang Dachun has been appointed as the new executive director, chairman of the board, and authorized representative, while Mr. Zhu Bing will take over as the chief executive officer. These changes are part of the company’s strategic efforts to ensure continued leadership and governance, with Mr. Huang bringing extensive experience from his previous roles in government and investment operations.

Honworld Group Limited Announces Board Restructuring

Honworld Group Limited has announced changes to its board of directors, effective from June 3, 2025. The board now includes Mr. Huang Dachun as Chairman, Mr. Zhu Bing as an Executive Director, Ms. Wang Yanping as a Non-executive Director, and three Independent Non-executive Directors: Mr. Shen Zhenchang, Mr. Ng Wing Fai, and Mr. Sun Jiong. These changes may impact the company’s governance and strategic direction, as the new board members will assume roles in key committees such as audit, remuneration, and nomination.

Honworld Group Appoints New Nomination Committee Member

Honworld Group Limited has announced the appointment of Ms. Wang Yanping as a member of its nomination committee, effective from May 27, 2025. This appointment reflects the company’s ongoing efforts to enhance its governance structure and strengthen its leadership team, potentially impacting its strategic direction and stakeholder relations.

Honworld Group Limited Announces New Board Structure

Honworld Group Limited has announced the composition of its board of directors, effective from May 27, 2025. The board includes Mr. Chen Wei as the Executive Director and Chairman, Ms. Wang Yanping as a Non-executive Director, and three Independent Non-executive Directors: Mr. Shen Zhenchang, Mr. Ng Wing Fai, and Mr. Sun Jiong. This announcement outlines the roles and functions of each director within the company’s three board committees, which are the Audit, Remuneration, and Nomination Committees. The new board structure is expected to enhance governance and strategic oversight at Honworld Group Limited.

Honworld Group’s AGM Resolutions Passed Unanimously

Honworld Group Limited announced that all resolutions proposed at their Annual General Meeting held on May 26, 2025, were passed unanimously. The resolutions included the adoption of financial statements, reappointment of the auditor, re-election of directors, and granting of mandates for share issuance and repurchase. This unanimous approval signifies strong shareholder support and may positively impact the company’s governance and strategic flexibility.

Honworld Group Ltd. Announces 2025 Annual General Meeting Agenda

Honworld Group Ltd. has announced its upcoming annual general meeting scheduled for May 26, 2025, in Huzhou, China. Key agenda items include the adoption of the 2024 financial statements, reappointment of the auditor, re-election of directors, and authorization for the board to manage share allotments. These resolutions aim to ensure continued corporate governance and operational flexibility, potentially impacting shareholder value and company growth.