KWG Living Group Holdings Limited (3913) AI Stock Analysis

• Market Cap: HK$427.46M
• Dividend Yield: N/A
• Average Volume (3M): 2.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.95
• Revenue Growth: -15.03%
• EPS Growth: -3600.73%
• Country: HK
• Employees: 15,577
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.14
• Shares Outstanding: 2,025,858,900
• 10 Day Avg. Volume: 2,570,316
• 30 Day Avg. Volume: 2,894,851
• PEG Ratio: <0.01
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -10.65
• 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: 44 Neutral
• Price Target: HK$0.21 ▼(-5.45% Downside)

The overall stock score for KWG Living Group Holdings Limited is primarily impacted by its financial performance, which shows significant challenges with declining revenue and profitability. The technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively contribute to a low overall stock score.

Positive Factors

Business Model Strength

KWG Living's diversified business model in property management and community services provides a stable revenue base, enhancing resilience against market fluctuations.

Competitive Advantages

As a leading provider in China, KWG Living benefits from significant market presence, enabling it to leverage economies of scale and maintain competitive pricing.

Balance Sheet Health

A strong equity ratio indicates a solid capital structure, providing financial stability and the ability to withstand economic downturns.

Negative Factors

Revenue Decline

A decline in revenue signals potential issues in maintaining market share or demand, which could impact long-term growth and profitability.

Cash Flow Challenges

Lack of operating cash flow suggests liquidity issues, potentially hindering the company's ability to invest in growth opportunities or manage debts.

Profitability Concerns

Decreasing net income and negative profit margins raise concerns about the company's ability to sustain profitability and fund future operations.

KWG Living Group Holdings Limited Business Overview & Revenue Model

Company Description

KWG Living Group Holdings Limited, an investment holding company, provides various residential and non-residential property management services in the People's Republic of China. The company also offers commercial operational, real estate intermediary and consultancy, advertising planning, and business services. As of December 31, 2021, it managed 801 residential properties with an aggregate gross floor area (GFA) under the management of 99.2 million square meters; and non-residential properties with an aggregate GFA under the management of 106.9 million square meters. The company was founded in 2004 and is based in Kowloon, Hong Kong.

How the Company Makes Money

KWG Living Group Holdings Limited generates revenue primarily through the sale of residential and commercial properties. The company's revenue model includes income from property development, where it constructs and sells residential units and commercial spaces. Additionally, KWG Living earns recurring income from property management services and leasing activities, where it manages properties and leases them to tenants. Key partnerships with local governments and strategic alliances with construction firms also enhance its capacity to acquire land and develop projects efficiently. Furthermore, the company's focus on integrating lifestyle services and amenities into its properties can lead to increased sale prices and rental yields, contributing positively to its overall earnings.

KWG Living Group Holdings Limited Financial Statement Overview

Summary

KWG Living Group Holdings Limited is facing notable financial challenges, with declining revenue and profitability, alongside liquidity constraints as reflected in the cash flow statement. While the balance sheet remains moderately strong due to a stable equity ratio, the declining trend in equity and net income raises concerns about future stability and growth prospects.

Income Statement

KWG Living Group Holdings Limited has faced challenges in maintaining profitability as evidenced by a decline in net income from 2023 to 2024, resulting in a negative net profit margin. The company also experienced a decrease in revenue from 2023 to 2024, indicating potential difficulties in sustaining growth. However, the gross profit margin remains relatively stable, suggesting that the company still maintains a decent level of operational efficiency.

Balance Sheet

The balance sheet of KWG Living Group Holdings Limited shows a moderate debt-to-equity ratio, indicating a balanced approach to leverage. However, there is a declining trend in stockholders' equity from 2023 to 2024, which may suggest decreased investor confidence or potential asset devaluation. The equity ratio remains strong, reflecting a solid capital structure relative to the company's total assets.

Cash Flow

KWG Living Group Holdings Limited's cash flow statement reflects significant challenges, with zero operating cash flow reported in 2024, which may indicate liquidity constraints. The company has not shown growth in free cash flow, and there is no available data on the free cash flow to net income ratio for analysis. This raises concerns about the company's ability to generate cash from its operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.31B	3.57B	3.85B	4.03B	3.26B	1.52B
Gross Profit	737.51M	882.66M	1.18B	1.24B	1.23B	638.55M
EBITDA	-34.13M	135.44M	341.52M	342.12M	900.11M	455.85M
Net Income	-898.24M	-572.28M	30.30M	3.41M	674.84M	323.08M
Balance Sheet
Total Assets	6.00B	6.18B	6.89B	6.94B	5.00B	4.23B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.15B	1.44B	1.85B	1.26B	2.97B
Total Debt	484.88M	530.04M	643.77M	566.34M	7.53M	6.73M
Total Liabilities	3.15B	3.04B	3.18B	3.52B	1.49B	1.24B
Stockholders Equity	2.56B	2.84B	3.40B	3.14B	3.47B	2.96B
Cash Flow
Free Cash Flow	154.80M	-58.05M	-391.64M	211.66M	269.76M	270.61M
Operating Cash Flow	167.30M	-30.60M	-375.77M	234.01M	274.32M	273.55M
Investing Cash Flow	-30.32M	-16.99M	-65.35M	654.62M	-2.80B	-142.42M
Financing Cash Flow	-264.58M	-249.69M	36.49M	-275.50M	841.99M	2.49B

KWG Living Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3913, the sentiment is Negative. The current price of 0.22 is above the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.23, and below the 200-day MA of 0.28, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.62 is Neutral, neither overbought nor oversold. The STOCH value of 10.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3913.

KWG Living Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3662	63 Neutral	HK$305.02M	7.16	3.28%	6.60%	-14.43%	-77.55%
0606	63 Neutral	HK$541.80M	48.28	0.38%	―	-5.91%	-94.58%
2215	58 Neutral	HK$243.24M	7.12	4.11%	―	-7.17%	-22.01%
6677	48 Neutral	HK$497.28M	-1.39	-17.20%	7.31%	-7.62%	-1151.82%
0727	45 Neutral	HK$286.16M	-42.65	-7.00%	―	-49.07%	94.90%
3913	44 Neutral	HK$427.46M	-0.45	-29.80%	―	-15.03%	-3600.73%

KWG Living Group Holdings Limited Corporate Events

KWG Living Says Guangdong Telijie Misses Performance Targets, Vendors Liable for Compensation

KWG Living Group Holdings Limited has provided an update on its 2022 acquisition of a 50% equity interest in Guangdong Telijie Environmental Engineering, which raised its stake in the company to 55% and turned Guangdong Telijie into a non-wholly owned subsidiary. Under the acquisition terms, the vendors had guaranteed specified revenue and net profit levels for 2022–2024, with a compensation mechanism if those targets were not met. Based on audited reports for 2022 and 2023 and a preliminary report for 2024, Guangdong Telijie has significantly fallen short of the guaranteed revenue and net profit targets, triggering a compensation obligation by the vendors to KWG Living, although the final amount will depend on the completion of the 2024 audited report and the ultimate accounting treatment of receivables and bad debt provisions.

The most recent analyst rating on (HK:3913) stock is a Sell with a HK$0.23 price target. To see the full list of analyst forecasts on KWG Living Group Holdings Limited stock, see the HK:3913 Stock Forecast page.

KWG Living Delays Dispatch of Circular on Connected Transactions

KWG Living Group Holdings has announced a delay in sending to shareholders a circular relating to the renewal of its continuing connected transactions, which was originally expected on or before 6 January 2026 and will now be dispatched on or before 23 January 2026. The postponement, attributed to the need for additional time to finalise information to be included in the document, affects the timetable for the circular, the notice of the extraordinary general meeting and the related proxy form, and may marginally extend the decision-making process for independent shareholders evaluating the group’s connected transaction arrangements.

The most recent analyst rating on (HK:3913) stock is a Hold with a HK$0.23 price target. To see the full list of analyst forecasts on KWG Living Group Holdings Limited stock, see the HK:3913 Stock Forecast page.

KWG Living Group Renews Key Property Management Agreements

KWG Living Group Holdings Limited has announced the renewal of several framework agreements for property management and related services, effective from January 1, 2026, to December 31, 2028. These agreements involve continuing connected transactions with KWG Holdings, which is a connected person due to shared controlling shareholders. The agreements include both partially exempt and non-exempt transactions under the Hong Kong Listing Rules, necessitating various levels of reporting and approval processes. This renewal aims to ensure the continuation of business operations beyond the expiration of previous agreements in 2025.

The most recent analyst rating on (HK:3913) stock is a Hold with a HK$0.23 price target. To see the full list of analyst forecasts on KWG Living Group Holdings Limited stock, see the HK:3913 Stock Forecast page.

KWG Living Group Addresses Regulatory Breach and Director Suitability

KWG Living Group Holdings Limited announced that its directors, Mr. Kong Jianmin and Mr. Kong Jiannan, were involved in a regulatory breach related to ineffective internal controls and communication failures with the Hong Kong Stock Exchange. Despite these issues, the company maintains that there is no evidence of dishonesty or fraud, and both directors are deemed suitable to continue in their roles after completing mandatory training on compliance and governance.

The most recent analyst rating on (HK:3913) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on KWG Living Group Holdings Limited stock, see the HK:3913 Stock Forecast page.