Herbs Generation Group Holdings Limited Class H (2593) AI Stock Analysis

• Market Cap: HK$158.67M
• Dividend Yield: 12.61%
• Average Volume (3M): 47.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 220
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Household & Personal Products
• EPS (TTM): 0.04
• Shares Outstanding: 133,333,600
• 10 Day Avg. Volume: 34,560
• 30 Day Avg. Volume: 47,813
• PEG Ratio: -0.42
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 11.60
• 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): -0.1
• Revenue Forecast (FY): HK$246.00M

• Rating: 56 Neutral
• Price Target: HK$1.50 ▲(23.97% Upside)

The overall stock score of 56 reflects a company with a solid financial foundation but facing challenges in market momentum and valuation. The strong financial performance is offset by bearish technical indicators and a concerning P/E ratio, although the high dividend yield provides some appeal.

Positive Factors

Strong Profitability Margins

High profitability margins suggest effective cost control and pricing power, supporting long-term financial health and competitive positioning.

Robust Cash Flow Generation

Strong cash flow generation supports operational sustainability and provides flexibility for future investments and growth opportunities.

Low Financial Leverage

Low leverage reduces financial risk and enhances the company's ability to withstand economic downturns, ensuring long-term stability.

Negative Factors

Decreased Net Profit Margin

A declining net profit margin indicates challenges in maintaining operational efficiency, which could impact future profitability and growth.

Revenue and Net Income Challenges

Struggles in revenue and net income growth may hinder the company's ability to expand and compete effectively in the market.

Reduced Return on Equity

A decrease in return on equity suggests less efficient use of equity capital, potentially affecting investor confidence and future capital raising.

Herbs Generation Group Holdings Limited Class H Business Overview & Revenue Model

Company Description

Herbs Generation Group Holdings Ltd. engages in the development, sale and marketing of health supplements, cosmetics, and skincare products. Its brands include Herbs, ZINO, Classic, Umeya, Energie, Regal Green, Men’s Infinity and Herbs Pet. The company was founded on March 22, 2024 and is headquartered in Hong Kong.

How the Company Makes Money

The company generates revenue through multiple streams, including the sale of herbal raw materials to manufacturers of traditional Chinese medicine and health supplements, direct-to-consumer sales of packaged herbal products, and partnerships with health and wellness brands. Key revenue streams include bulk sales of dried herbs and extracts, retail sales through e-commerce platforms and physical outlets, and potential licensing agreements with other companies in the health sector. Additionally, the company's focus on quality control and sustainable practices enhances its market position, contributing to customer loyalty and repeat purchases.

Herbs Generation Group Holdings Limited Class H Financial Statement Overview

Summary

Herbs Generation Group Holdings Limited Class H exhibits strong financial performance with high gross profit margins and robust cash flow generation. Despite challenges in revenue and net profit margins, the company maintains a low-risk balance sheet with minimal leverage.

Income Statement

The company has demonstrated stable revenue generation with a slight decline in the latest year. The gross profit margin remains strong at approximately 74%, indicating efficient cost management. However, net profit margin has decreased significantly from the previous year, influenced by a reduction in EBIT and EBITDA margins, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with a debt-to-equity ratio of 0.17, showcasing low financial leverage. The equity ratio is high at 77%, indicating a strong capital structure. Return on equity has decreased, highlighting reduced profitability from equity investments.

Cash Flow

The company exhibits robust cash flow generation capabilities with consistent free cash flow. The operating cash flow to net income ratio is strong, suggesting effective cash conversion. Free cash flow growth is stable, reinforcing the company's ability to sustain operations and invest in future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	244.97M	245.49M	251.22M	208.03M	188.64M
Gross Profit	155.19M	161.06M	170.35M	149.59M	135.80M
EBITDA	22.22M	40.81M	63.35M	45.89M	36.49M
Net Income	-2.05M	12.96M	39.50M	27.97M	23.18M
Balance Sheet
Total Assets	209.06M	242.00M	141.05M	124.11M	114.07M
Cash, Cash Equivalents and Short-Term Investments	89.75M	119.22M	22.48M	12.93M	4.20M
Total Debt	26.73M	32.22M	28.98M	28.24M	33.82M
Total Liabilities	49.41M	54.82M	50.42M	54.02M	62.46M
Stockholders Equity	159.65M	187.18M	90.63M	70.09M	51.62M
Cash Flow
Free Cash Flow	10.54M	31.96M	32.67M	30.52M	20.72M
Operating Cash Flow	13.09M	37.43M	37.38M	32.72M	24.90M
Investing Cash Flow	-3.57M	-5.13M	-4.51M	2.74M	-3.44M
Financing Cash Flow	53.69M	64.43M	-23.32M	-26.02M	-21.43M

Herbs Generation Group Holdings Limited Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.21
• 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:2593, the sentiment is Negative. The current price of 1.21 is above the 20-day moving average (MA) of 1.19, below the 50-day MA of 1.22, and below the 200-day MA of 1.55, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2593.

Herbs Generation Group Holdings Limited Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6868	61 Neutral	HK$2.88B	22.63	6.81%	3.75%	-16.51%	-35.38%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
2593	56 Neutral	HK$158.67M	―	-1.80%	12.61%	―	―
2700	51 Neutral	HK$376.14M	-132.56	-7.37%	―	11.32%	62.61%
0643	46 Neutral	HK$229.46M	-4.47	-36.27%	―	-13.88%	-210.33%
1115	44 Neutral	HK$3.04B	-3.69	-20.18%	―	-9.19%	-67.34%
0186	41 Neutral	HK$878.76M	-22.54	-12.13%	―	-85.44%	-172.45%

Herbs Generation Group Holdings Limited Class H Corporate Events

Herbs Generation Group Announces Leadership Changes

Herbs Generation Group Holdings Limited has announced a change in its company secretary and authorized representative roles. Ms. Chan Oi Ling has resigned from her positions, and Mr. Tsang Hing Suen, the current Chief Financial Officer, has been appointed to these roles effective November 7, 2025. Mr. Tsang brings over 17 years of experience in accounting and auditing, enhancing the company’s leadership team. The board expressed gratitude to Ms. Chan for her contributions and welcomed Mr. Tsang to his new role.