Cheerwin Group Limited (6601) AI Stock Analysis

• Market Cap: €2.99B
• Dividend Yield: 5.85%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.64
• Revenue Growth: 9.72%
• EPS Growth: -10.15%
• Country: HK
• Employees: 1,202
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.14
• Shares Outstanding: 1,333,333,500
• 10 Day Avg. Volume: 1,859,050
• 30 Day Avg. Volume: 2,283,633
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €2.46
• Price Target Upside: 9.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: HK$2.50 ▲(11.61% Upside)

The overall stock score is primarily influenced by strong financial performance, particularly in revenue growth and equity structure. However, the bearish technical indicators and cash flow challenges weigh down the score. The fair valuation with a good dividend yield provides some support.

Cheerwin Group Limited Business Overview & Revenue Model

Company Description

Cheerwin Group Limited (6601) is a leading Chinese company in the fast-moving consumer goods (FMCG) sector, primarily focusing on household and personal care products. The company offers a diverse range of products, including home cleaning solutions, personal hygiene products, and pet care items. It operates under various well-recognized brands, catering to the evolving needs of consumers in China and expanding to international markets.

How the Company Makes Money

Cheerwin Group Limited generates revenue through the manufacturing and distribution of its household and personal care products. The company sells its products through multiple channels, including e-commerce platforms, supermarkets, and convenience stores, ensuring wide accessibility. A significant portion of its income is derived from its strong brand portfolio, which resonates well with consumers. Additionally, Cheerwin Group leverages strategic partnerships and alliances to enhance its market presence and distribution capabilities, contributing to its revenue growth. The company also invests in marketing and innovation to maintain its competitive edge, which helps drive sales and profitability.

Cheerwin Group Limited Financial Statement Overview

Summary

Cheerwin Group Limited demonstrates strong revenue growth and a solid equity structure, maintaining low financial risk with minimal debt. However, the decline in cash flow generation poses a potential risk that needs addressing to sustain operational flexibility. Continued focus on improving operating efficiency and cash management will be crucial for maintaining financial health.

Income Statement

The income statement shows a positive trend with revenue growing from 2023 to 2024 by approximately 12.7%. Gross and net profit margins are stable with the gross profit margin at 49.1% and net profit margin at 11.2% in 2024. However, EBIT margin decreased slightly from 8.2% in 2023 to 7.0% in 2024. These figures indicate a strong revenue base with room for efficiency improvements in operating expenses.

Balance Sheet

The balance sheet reflects a solid equity position with a high equity ratio of 78.7%. The debt-to-equity ratio remains very low at 0.02, indicating low leverage and minimal financial risk. Return on equity improved to 6.8% in 2024, showcasing effective use of shareholder funds to generate profit. Overall, the balance sheet is strong, indicating financial stability and low risk.

Cash Flow

The cash flow statement reveals challenges with operating cash flow at zero in 2024, down from 326.9 million in 2023. Free cash flow also dropped to zero, indicating a need for improvements in cash management. Despite this, the company's cash reserves remain robust, providing a buffer. The lack of positive cash flow may pose a risk if not addressed in future periods.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.82B	1.62B	1.44B	1.77B	1.70B
Gross Profit	894.34M	718.26M	599.81M	787.43M	742.58M
EBITDA	183.84M	254.24M	119.44M	148.31M	325.85M
Net Income	203.38M	175.02M	66.10M	92.09M	223.78M
Balance Sheet
Total Assets	3.80B	3.84B	3.57B	3.42B	1.61B
Cash, Cash Equivalents and Short-Term Investments	2.87B	2.77B	2.72B	2.67B	884.77M
Total Debt	49.48M	28.02M	16.61M	14.91M	306.88M
Total Liabilities	812.47M	898.67M	753.16M	687.39M	1.36B
Stockholders Equity	2.99B	2.93B	2.81B	2.73B	247.68M
Cash Flow
Free Cash Flow	-5.30M	311.60M	54.96M	-241.35M	350.83M
Operating Cash Flow	9.35M	326.92M	66.76M	-191.90M	382.73M
Investing Cash Flow	-190.25M	-43.93M	-1.29B	-199.92M	-18.83M
Financing Cash Flow	-185.63M	-93.63M	-105.53M	2.08B	9.94M

Cheerwin Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6601, the sentiment is Negative. The current price of 2.24 is below the 20-day moving average (MA) of 2.31, below the 50-day MA of 2.46, and above the 200-day MA of 2.23, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 35.92 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6601.

Cheerwin Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2145	77 Outperform	40.77B	40.32	―	1.66%	20.78%	18.37%
1044	72 Outperform	29.01B	11.74	10.99%	6.10%	-3.48%	-24.11%
6601	67 Neutral	€2.99B	14.06	6.65%	5.85%	9.72%	-10.15%
2023	62 Neutral	388.52M	6.83	11.48%	―	11.10%	-4.38%
3332	54 Neutral	607.55M	20.05	8.77%	―	-0.92%	-71.88%
6993	47 Neutral	18.93B	-33.33	-8.65%	4.33%	2.79%	-170.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Cheerwin Group Limited Corporate Events

Cheerwin Group Limited Successfully Concludes AGM with All Resolutions Passed

Cheerwin Group Limited announced the successful conclusion of its Annual General Meeting held on June 19, 2025. All proposed resolutions, including the adoption of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of Deloitte Touche Tohmatsu as auditor, were passed by a significant majority. This outcome reflects strong shareholder support and positions the company for continued operational stability and governance.