Honworld Group Ltd. (2226) AI Stock Analysis

• Market Cap: HK$225.71M
• Dividend Yield: N/A
• Average Volume (3M): 84.43K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: HK$0.39 ▼(-22.60% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven primarily by very weak financial performance (losses, negative equity, and negative operating cash flow). Technicals also remain bearish with the stock below major moving averages and a negative MACD, while valuation signals are limited due to a negative P/E and no dividend yield data.

Positive Factors

Diversified product portfolio

Honworld’s product breadth across supplements, health foods and beverages reduces single-product risk and enables cross-selling across channels. Over the medium term this diversification supports revenue resilience and market adaptability as consumer demand shifts between categories.

Multi-channel distribution and e-commerce reach

A diversified go-to-market model—retail, distributor partnerships and e-commerce—strengthens market access and scalability. Structurally, multi-channel distribution helps sustain shelf presence and capture shifts toward online purchases, supporting steady revenue opportunities if execution holds.

Positive gross profit margin on product sales

Despite operating losses, a positive gross margin indicates the core products can generate unit-level profit. This suggests that with disciplined SG&A control or scale benefits, the company has a pathway to restore operating profitability over several quarters.

Negative Factors

Declining revenue and persistent operating losses

Sustained revenue decline and repeated negative EBIT/EBITDA signal deteriorating market position and unprofitable core operations. Over a multi-month horizon this undermines cash generation and necessitates either operational turnaround or strategic reductions to avoid further erosion.

Negative shareholders' equity and heavy leverage

Negative equity and rising debt create solvency and financing risks; they constrain access to new funding and increase refinancing or covenant pressures. Structurally, this weak capital base limits investment, makes strategic initiatives harder, and raises the probability of restructuring actions.

Negative operating cash flow and no free cash flow

Persistent negative operating cash flow forces reliance on external financing or asset sales to meet obligations. Over 2–6 months this undermines liquidity, hampers working-capital funding for sales growth, and increases default or dilution risks absent a sustained cash-flow recovery.

Honworld Group Ltd. Business Overview & Revenue Model

Company Description

Honworld Group Limited, an investment holding company, manufactures and sells cooking wine and other condiment products under the Lao Heng He brand in the People's Republic of China. The company offers soy sauce, vinegar, soybean paste, and fermented bean curd products. It also engages in the wholesale of condiment products. The company was incorporated in 2012 is headquartered in Huzhou, the People's Republic of China.

How the Company Makes Money

Honworld Group Ltd. generates revenue through multiple streams, primarily from the sales of its food and beverage products. The company benefits from a robust distribution network that allows it to reach various retail and online channels, enhancing its market presence. Key revenue streams include direct sales to retailers, partnerships with distributors, and online sales through e-commerce platforms. Additionally, Honworld Group engages in strategic partnerships with other companies to expand its product offerings and market reach, further contributing to its earnings. The focus on high-quality and innovative products helps the company maintain a competitive edge in the market, leading to sustained revenue growth.

Honworld Group Ltd. Financial Statement Overview

Summary

Financial statements indicate severe deterioration: declining revenue, persistent operating losses (negative EBIT/EBITDA and net income), negative stockholders’ equity suggesting financial distress, rising leverage, and negative operating cash flow with no free cash flow.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	275.22M	275.08M	258.78M	271.60M	252.67M	226.33M
Gross Profit	62.11M	68.91M	74.11M	74.82M	68.51M	45.60M
EBITDA	-33.59M	-32.09M	-74.66M	-74.07M	-153.91M	-59.62M
Net Income	-520.64M	-516.56M	-524.32M	-486.34M	-318.45M	-845.29M
Balance Sheet
Total Assets	1.02B	1.05B	1.11B	1.12B	1.19B	1.21B
Cash, Cash Equivalents and Short-Term Investments	5.78M	6.35M	10.12M	9.81M	31.02M	8.44M
Total Debt	3.57B	3.31B	2.81B	2.21B	1.76B	1.50B
Total Liabilities	4.13B	3.90B	3.45B	2.93B	2.51B	2.21B
Stockholders Equity	-3.10B	-2.85B	-2.33B	-1.81B	-1.32B	-1.00B
Cash Flow
Free Cash Flow	30.85M	-20.97M	-122.22M	-243.70M	-116.33M	-199.17M
Operating Cash Flow	46.37M	-830.00K	-102.22M	-226.80M	-97.81M	-196.79M
Investing Cash Flow	-15.49M	-20.13M	-22.46M	-19.02M	-12.42M	81.33M
Financing Cash Flow	-36.03M	18.62M	126.05M	228.54M	131.75M	-53.31M

Honworld Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 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 0.5 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.45, and below the 200-day MA of 0.55, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 40.25 is Neutral, neither overbought nor oversold. The STOCH value of 20.83 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
1767	71 Outperform	HK$375.00M	12.59	5.48%	0.78%	5.43%	-25.42%
1837	68 Neutral	HK$2.47B	7.35	13.72%	3.74%	11.89%	27.80%
1285	64 Neutral	HK$381.80M	7.85	4.62%	13.51%	2.82%	-22.62%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3999	54 Neutral	HK$630.04M	6.95	0.34%	―	1.59%	-56.45%
1262	44 Neutral	HK$871.48M	52.45	-21.92%	―	4.72%	79.88%
2226	39 Underperform	HK$225.71M	-0.34	―	―	-0.28%	1.40%

Honworld Group Ltd. Corporate Events

Honworld’s Public Float Falls Below Hong Kong Listing Threshold

Honworld Group Limited has disclosed that its public float has dropped to about 23.27% of its issued share capital, below the 25% minimum required for Hong Kong-listed companies, after investor Mao Huixin’s stake rose to roughly 10.09%. With more than half the company’s shares held by Wuxing City Investment HK Company Limited and additional large blocks in the hands of other core connected parties, the reduced public float puts Honworld in technical breach of listing rules, prompting the board to consider measures such as share disposals by connected persons and/or new share issuance to the public in order to restore compliance, with further updates to be announced.

The most recent analyst rating on (HK:2226) stock is a Sell with a HK$0.42 price target. To see the full list of analyst forecasts on Honworld Group Ltd. stock, see the HK:2226 Stock Forecast page.

Honworld Group Announces Executive Leadership Change

Honworld Group Limited has announced a change in its executive leadership with the resignation of Mr. Zhu Bing as Executive Director and CEO, effective November 5, 2025, due to other business commitments. Mr. Li Qinghua has been appointed as the new Executive Director and CEO, also effective November 5, 2025. Mr. Li brings extensive experience in various governmental roles and has been recognized for his contributions to public service.

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 Announces Board Restructuring

Honworld Group Limited has announced changes to its board of directors, effective from November 5, 2025. The board now includes executive directors Mr. Huang Dachun and Mr. Li Qinghua, non-executive director Ms. Wang Yanping, and independent non-executive directors Mr. Shen Zhenchang, Mr. Ng Wing Fai, and Mr. Sun Jiong. These changes may impact the company’s governance structure and strategic direction, potentially influencing its market positioning and stakeholder relations.

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.