Cheerwin Group Limited (6601) AI Stock Analysis

• Market Cap: €3.19B
• Dividend Yield: 5.48%
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.61
• 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: 2,108,644
• 30 Day Avg. Volume: 1,916,198
• PEG Ratio: 0.72
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 1.24
• P/FCF Ratio: -425.06
• 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: €2.54
• Price Target Upside: 6.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$2.50 ▲(4.60% Upside)

The overall stock score reflects a solid financial performance with strong revenue growth and a robust equity position, though cash flow challenges need to be addressed. Valuation is favorable with a reasonable P/E ratio and high dividend yield. Technical analysis presents mixed signals, with short-term bullishness but potential bearish momentum.

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 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 shows strong revenue growth and a solid equity structure with low financial risk due to minimal debt. However, the decline in cash flow generation poses a potential risk that needs addressing to sustain operational flexibility.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.91B	1.82B	1.62B	1.44B	1.77B	1.70B
Gross Profit	975.12M	894.34M	718.26M	599.81M	787.43M	742.58M
EBITDA	169.91M	183.84M	254.24M	119.44M	107.20M	295.85M
Net Income	197.48M	203.38M	175.02M	66.10M	92.09M	223.78M
Balance Sheet
Total Assets	3.68B	3.80B	3.84B	3.57B	3.42B	1.61B
Cash, Cash Equivalents and Short-Term Investments	2.64B	2.87B	2.77B	2.72B	2.67B	884.77M
Total Debt	50.57M	49.48M	28.02M	16.61M	14.91M	306.88M
Total Liabilities	624.31M	812.47M	898.67M	753.16M	687.39M	1.36B
Stockholders Equity	3.06B	2.99B	2.93B	2.81B	2.73B	247.68M
Cash Flow
Free Cash Flow	162.84M	-5.30M	311.60M	54.96M	-241.35M	402.49M
Operating Cash Flow	169.06M	9.35M	326.92M	66.76M	-191.90M	438.33M
Investing Cash Flow	-34.55M	-190.25M	-43.93M	-1.29B	-199.92M	-142.67M
Financing Cash Flow	-167.16M	-185.63M	-93.63M	-105.53M	2.08B	124.42M

Cheerwin Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.39
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2.39 is above the 20-day moving average (MA) of 2.29, above the 50-day MA of 2.36, and above the 200-day MA of 2.26, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.85 is Neutral, neither overbought nor oversold. The STOCH value of 98.04 is Negative, 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
2145	74 Outperform	HK$39.80B	39.36	39.62%	2.26%	20.78%	18.37%
6601	74 Outperform	€3.19B	15.00	6.65%	5.48%	9.72%	-10.15%
1044	72 Outperform	$31.94B	12.93	10.69%	5.54%	-3.48%	-24.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2023	62 Neutral	HK$368.85M	6.48	10.92%	―	11.10%	-4.38%
3332	56 Neutral	HK$664.25M	21.93	3.92%	―	-0.92%	-71.88%
6993	47 Neutral	HK$17.94B	―	-6.08%	4.58%	2.79%	-170.67%

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.