Cheerwin Group Limited (6601) AI Stock Analysis

• Market Cap: €4.03B
• Dividend Yield: 4.75%
• Average Volume (3M): 5.22M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.65
• Revenue Growth: 9.45%
• EPS Growth: 12.30%
• Country: HK
• Employees: 1,202
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Household & Personal Products
• EPS (TTM): 0.02
• Shares Outstanding: 1,333,333,500
• 10 Day Avg. Volume: 7,288,050
• 30 Day Avg. Volume: 5,223,390
• PEG Ratio: -0.98
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.20
• 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

• Rating: 77 Outperform
• Price Target: ―

Cheerwin Group Limited has a strong revenue base and solid equity position, which enhances its financial stability. The stock displays positive momentum, though it may face a price correction due to overbought indicators. While the valuation is reasonable, the cash flow decline needs addressing to maintain operational flexibility. The combination of these factors results in a moderately strong stock score.

Cheerwin Group Limited Business Overview & Revenue Model

Company Description

Cheerwin Group Limited, together with its subsidiaries, engages in the manufacture and trading of household insecticides and repellents, household cleaning, air care, personal care, pet care, and other products in China. It provides hand sanitizers, soaps, and Florida water; auto accessories; and marketing services. The company offers its products under the Vewin, Superb, Naughty Mouth, Babeking, Cyrin, Rikiso, Naughty Buddy, and Dux brand names. Cheerwin Group Limited was founded in 2006 and is headquartered in Guangzhou, China. Cheerwin Group Limited is a subsidiary of Cheerwin Global Limited.

How the Company Makes Money

Cheerwin Group Limited generates revenue primarily through the sale of its consumer goods across various retail channels, including supermarkets, e-commerce platforms, and direct sales. The company leverages its strong brand portfolio and extensive distribution network to reach a broad customer base, ensuring product availability and visibility. Key revenue streams include personal care products, which capture a significant share of the market due to high consumer demand. Additionally, Cheerwin Group engages in strategic partnerships and collaborations to enhance market penetration and expand its product offerings, further contributing to its financial performance.

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
	EBIT
187.93M	133.19M	60.85M	117.76M	310.93M
	EBITDA
183.84M	254.24M	119.44M	148.31M	325.85M
	Net Income Common Stockholders
203.38M	175.02M	66.10M	92.09M	223.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.87B	2.77B	2.72B	2.67B	884.77M
	Total Assets
3.80B	3.84B	3.57B	3.42B	1.61B
	Total Debt
49.48M	28.02M	16.61M	14.91M	306.88M
	Net Debt
-841.94M	-862.95M	-886.89M	-1.94B	-577.89M
	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
0.00	311.60M	54.96M	-241.35M	350.83M
	Operating Cash Flow
0.00	326.92M	66.76M	-191.90M	382.73M
	Investing Cash Flow
0.00	-43.93M	-1.29B	-199.92M	-18.83M
	Financing Cash Flow
0.00	-93.63M	-105.53M	2.08B	9.94M

Cheerwin Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 3.03 is above the 20-day moving average (MA) of 2.78, above the 50-day MA of 2.45, and above the 200-day MA of 2.06, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 67.76 is Neutral, neither overbought nor oversold. The STOCH value of 61.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6601.

Cheerwin Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6601	77 Outperform	€4.03B	18.26	6.78%	4.75%	9.45%	12.30%
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
LNNGF		$5.23B	12.31	11.92%	5.28%	―	―
HEGIF		$3.24B	8.46	11.12%	8.17%	―	―
SZHIF		$10.51B	12.14	18.17%	4.30%	―	―
WRFRF		$7.87B	64.63	0.47%	0.81%	―	―
YZOFF		$2.67B	11.70	6.68%	4.72%	―	―

Cheerwin Group Limited Corporate Events

Cheerwin Group Limited Announces 2025 Annual General Meeting Agenda

Cheerwin Group Limited has announced its upcoming annual general meeting scheduled for June 19, 2025, in Guangzhou, China. Key agenda items include the adoption of the 2024 financial statements, declaration of a final dividend, re-election of directors, and re-appointment of Deloitte Touche Tohmatsu as auditors. The meeting will also consider authorizing the board to issue additional shares, potentially impacting the company’s capital structure and shareholder value.

Cheerwin Group Reports Strong 2024 Financial Results with Increased Revenue and Profit

Cheerwin Group Limited announced its annual results for the year ended 31 December 2024, reporting a 12.7% increase in revenue to RMB1,820.1 million and a 13.0% rise in net profit to RMB195.2 million. The company attributed its growth to effective cost management, enhanced brand influence, and strategic channel development, particularly in e-commerce. The board declared a final dividend, bringing the total dividend payout ratio to approximately 80.0%.

Cheerwin Group Limited Announces Final Dividend for 2024

Cheerwin Group Limited has announced a final ordinary cash dividend of RMB 0.0682 per share for the financial year ending December 31, 2024. The dividend, payable in Hong Kong dollars at a rate of HKD 0.0739 per share, will be distributed on July 8, 2025, following shareholder approval on June 19, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may positively impact its market perception.

Cheerwin Group Schedules Board Meeting for Annual Results and Dividend Decision

Cheerwin Group Limited has announced that its Board of Directors will meet on March 25, 2025, to approve the audited annual results for the year ending December 31, 2024, and to consider the payment of a final dividend. This meeting is significant as it will determine the financial outcomes for the past year and potentially impact shareholder returns.