Numans Health Food Holdings Company Limited (2530) AI Stock Analysis

• Market Cap: HK$600.00M
• Dividend Yield: 8.95%
• Average Volume (3M): 43.20K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.49
• Revenue Growth: -41.06%
• EPS Growth: -74.96%
• Country: HK
• Employees: 44
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Packaged Foods
• EPS (TTM): N/A
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 61,600
• 30 Day Avg. Volume: 43,200
• PEG Ratio: -0.16
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 2.34
• P/FCF Ratio: 7.87
• 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: 67 Neutral
• Price Target: HK$0.62 ▲(4.75% Upside)

The score is driven primarily by solid financial stability and profitability metrics (notably low leverage and strong margins), tempered by meaningful revenue and margin deterioration and weakening free cash flow. Technically, the stock screens weak versus major moving averages, while valuation is helped by a high dividend yield and a moderate P/E.

Positive Factors

Very low leverage and strong equity base

A near-zero debt-to-equity ratio and a 91% equity ratio create a durable capital structure that reduces refinancing and interest-rate risks. This financial flexibility supports stable operations, capacity to fund organic growth or capex, and resilience across economic cycles over the next months.

Very high gross and robust operating margins

Consistently >75% gross margins and healthy EBIT/EBITDA margins indicate structural production efficiency and pricing power. High margins provide lasting buffer to absorb demand shocks, support reinvestment in product quality/marketing, and sustain profitability through medium-term headwinds.

Positive operating cash flow and available free cash

Operating cash flow covering net income (1.11x) and positive free cash flow demonstrate the company's ability to convert earnings into spendable cash. This cash generation supports working capital, dividends or selective reinvestment without reliance on external financing over the coming months.

Negative Factors

Sharp recent revenue contraction

A roughly one-third drop in revenue materially weakens the business' scale economics and market footprint. Persisting top-line decline can erode negotiating leverage, reduce fixed-cost absorption, and constrain investment, posing a sustained headwind to growth and margins.

Declining net profit margin

A 10 percentage-point fall in net margin signals deteriorating bottom-line efficiency—either cost pressure or pricing weakness. Lower margins reduce retained earnings and ROE, limiting the firm's capacity to reinvest, fund dividends, or rebuild growth without structural fixes.

Worsening free cash flow trend

Although free cash remained positive, a clear decline in FCF reduces headroom for capex, product development, or shareholder returns. A deteriorating cash-generation trend increases vulnerability to revenue shocks and may force tougher tradeoffs between growth investments and payouts.

Numans Health Food Holdings Company Limited Business Overview & Revenue Model

Company Description

Numans Health Food Holdings Company Limited engages in the marketing, sales, and distribution of finished nutritional products under the Nemans brand name in the People's Republic of China. It offers algal oil docosahexaenoic acid for development of the brain and eyes, as well as the immune system of infants and children, as well as relieving the symptoms of forgetfulness and anxiety of mothers during pregnancy and of postpartum depression after childbirth; probiotics products, including solid drinks and lactic acid bacteria powders for adults and infants to improve digestion and boosting immunity; Vitamin products; multi-nutrient products for pregnant women, infants, and children; algal calcium products; and milk powder products for infants, children, and adults. It distributes its products through online and offline channels. The company was founded in 2002 and is headquartered in Shanghai, China. Numans Health Food Holdings Company Limited is a subsidiary of Far-East Fortune Management (China) Co., Ltd.

How the Company Makes Money

Numans Health Food Holdings generates revenue primarily through the sale of its health food products across various channels, including retail, online marketplaces, and direct-to-consumer sales. Key revenue streams include the sale of dietary supplements, which are increasingly popular among health-conscious consumers, and health snacks that appeal to a wide demographic. The company also benefits from strategic partnerships with health and wellness retailers, which enhance its market reach and distribution capabilities. Additionally, Numans invests in marketing initiatives to build brand awareness and drive sales, contributing to its overall revenue growth.

Numans Health Food Holdings Company Limited Financial Statement Overview

Summary

Numans Health Food Holdings exhibits a commendable balance sheet with low leverage and strong equity positioning. However, declining revenue and net profit margins indicate challenges in growth and profitability. Cash flow management remains effective, although reduced free cash flow suggests potential cash generation issues. Overall, while the company is financially stable, addressing revenue growth and profitability is essential for future success.

Income Statement

Numans Health Food Holdings demonstrates a strong gross profit margin, consistently above 75%, indicating efficient production and cost management. However, the net profit margin has declined to 27% in 2024 from 37% in 2023, reflecting a decrease in profitability. Revenue has decreased by approximately 35% from 2023 to 2024, presenting a concern for growth trajectory. EBIT and EBITDA margins remain robust, showcasing operational efficiency despite revenue challenges.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.01, reflecting minimal leverage. The equity ratio is strong at 91%, indicating a stable capital structure primarily financed by equity. Return on equity has decreased from 38.9% in 2023 to 19.9% in 2024, signaling reduced profitability for shareholders. Overall, the balance sheet remains healthy, supported by substantial cash reserves.

Cash Flow

Operating cash flow to net income ratio stands at 1.11, indicating that operating activities generate sufficient cash to cover net income. Despite a decline in free cash flow from 2023 to 2024, the company maintains a positive free cash flow, which is crucial for funding operations without external financing. The cash flow statement reflects a competent management of cash resources, although the decline in free cash flow warrants attention.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	277.50M	426.55M	367.30M	337.61M
Gross Profit	211.06M	320.87M	273.19M	246.60M
EBITDA	103.76M	199.86M	103.60M	157.81M
Net Income	74.90M	159.34M	87.52M	119.67M
Balance Sheet
Total Assets	415.59M	470.02M	403.58M	288.81M
Cash, Cash Equivalents and Short-Term Investments	235.82M	262.56M	192.84M	152.66M
Total Debt	4.43M	5.83M	7.45M	1.23M
Total Liabilities	39.07M	59.94M	156.34M	86.29M
Stockholders Equity	376.52M	410.08M	247.24M	202.52M
Cash Flow
Free Cash Flow	82.33M	149.95M	39.42M	93.00M
Operating Cash Flow	83.46M	150.57M	44.31M	93.99M
Investing Cash Flow	2.04M	1.57M	-4.14M	-519.00K
Financing Cash Flow	-113.48M	-83.79M	-8.55M	-29.31M

Numans Health Food Holdings Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.59
• 50DMA: Negative
• 100DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2530, the sentiment is Negative. The current price of 0.59 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.60, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.32 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2530.

Numans Health Food Holdings Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2317	72 Outperform	HK$989.78M	8.29	5.08%	10.44%	-1.19%	-9.05%
1767	71 Outperform	HK$300.00M	11.36	5.48%	0.78%	5.43%	-25.42%
1837	68 Neutral	HK$2.39B	10.73	13.72%	3.74%	11.89%	27.80%
2530	67 Neutral	HK$600.00M	17.39	6.65%	8.95%	-41.06%	-74.96%
3838	63 Neutral	HK$1.09B	2.41	10.38%	5.38%	-6.58%	16.23%
0926	58 Neutral	HK$223.03M	14.91	3.67%	47.72%	7.35%	―
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%