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): -0.10
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.50 ▼(-5.66% 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.

Positive Factors

Brand Reputation

Honworld's strong brand reputation in premium Chinese cooking wine supports long-term customer loyalty and market presence, crucial for sustained revenue.

Product Quality

Emphasizing product quality and authenticity helps Honworld differentiate in the competitive condiment market, potentially driving customer preference and repeat purchases.

Distribution Network

An extensive distribution network enhances market reach, supporting stable revenue streams and enabling efficient product delivery to diverse customer segments.

Negative Factors

Financial Instability

Ongoing financial instability and operating losses threaten Honworld's ability to invest in growth opportunities, potentially impacting long-term competitiveness and market position.

Negative Equity

Negative equity indicates financial distress, limiting Honworld's ability to secure financing and posing risks to its operational sustainability and strategic initiatives.

Cash Flow Challenges

Negative cash flow from operations raises liquidity concerns, potentially forcing reliance on external funding and hindering the company's ability to manage day-to-day operations effectively.

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

Honworld Group Ltd. is experiencing severe 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	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: Positive
• Last Price: 0.53
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 0.53 is above the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.51, and below the 200-day MA of 0.60, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 64.83 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2226.

Honworld Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1285	72 Outperform	HK$485.55M	10.06	4.62%	12.71%	2.82%	-22.62%
1767	71 Outperform	HK$285.00M	10.80	5.48%	0.73%	5.43%	-25.42%
1837	68 Neutral	HK$2.41B	10.83	13.72%	3.60%	11.89%	27.80%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3999	54 Neutral	€630.04M	76.54	0.34%	―	1.59%	-56.45%
2226	41 Neutral	HK$300.95M	-0.54	―	―	-0.28%	1.40%
1262	38 Underperform	HK$360.39M	―	-23.87%	―	4.72%	79.88%

Honworld Group Ltd. Corporate Events

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.

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.