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Cheerwin Group Limited (HK:6601)
:6601

Cheerwin Group Limited (6601) AI Stock Analysis

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HK

Cheerwin Group Limited

(Frankfurt:6601)

Rating:74Outperform
Price Target:
HK$3.00
▲(11.52%Upside)
The overall stock score is driven primarily by strong financial performance with significant revenue growth and low financial risk, despite the challenges in cash flow management. Technical indicators support a positive price trend, and the valuation appears reasonable with a high dividend yield. The absence of earnings call and corporate event data means these factors did not contribute to the score.

Cheerwin Group Limited (6601) vs. iShares MSCI Hong Kong ETF (EWH)

Cheerwin Group Limited Business Overview & Revenue Model

Company DescriptionCheerwin Group Limited (6601) is a leading consumer goods company based in China, specializing in the production and distribution of personal care, home care, and pet care products. The company operates through a diverse portfolio of well-known brands that cater to the daily needs of households, offering a wide range of products including cleaning agents, air fresheners, personal hygiene products, and pet grooming items.
How the Company Makes MoneyCheerwin 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
78
Positive
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
82
Very Positive
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
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.82B1.62B1.44B1.77B1.70B
Gross Profit894.34M718.26M599.81M787.43M742.58M
EBITDA183.84M254.24M119.44M148.31M325.85M
Net Income203.38M175.02M66.10M92.09M223.78M
Balance Sheet
Total Assets3.80B3.84B3.57B3.42B1.61B
Cash, Cash Equivalents and Short-Term Investments2.87B2.77B2.72B2.67B884.77M
Total Debt49.48M28.02M16.61M14.91M306.88M
Total Liabilities812.47M898.67M753.16M687.39M1.36B
Stockholders Equity2.99B2.93B2.81B2.73B247.68M
Cash Flow
Free Cash Flow-5.30M311.60M54.96M-241.35M350.83M
Operating Cash Flow9.35M326.92M66.76M-191.90M382.73M
Investing Cash Flow-190.25M-43.93M-1.29B-199.92M-18.83M
Financing Cash Flow-185.63M-93.63M-105.53M2.08B9.94M

Cheerwin Group Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.69
Price Trends
50DMA
2.58
Positive
100DMA
2.32
Positive
200DMA
2.08
Positive
Market Momentum
MACD
0.02
Positive
RSI
50.15
Neutral
STOCH
54.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6601, the sentiment is Neutral. The current price of 2.69 is below the 20-day moving average (MA) of 2.75, above the 50-day MA of 2.58, and above the 200-day MA of 2.08, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 54.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6601.

Cheerwin Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$33.63B38.3037.28%0.99%59.83%68.29%
74
Outperform
€3.59B16.266.78%5.49%9.45%12.30%
72
Outperform
$26.84B10.5711.12%6.56%-6.53%-18.43%
63
Neutral
HK$403.28M7.2512.01%25.55%14.47%
60
Neutral
HK$17.46B11.050.20%5.36%2.68%-48.29%
60
Neutral
HK$696.65M10.868.96%30.72%-35.61%
54
Neutral
HK$23.80B-7.87%2.96%16.82%-348.71%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6601
Cheerwin Group Limited
2.69
1.11
70.04%
HK:6993
Blue Moon Group Holdings Ltd.
4.06
2.17
114.81%
HK:3332
Nanjing Sinolife United Co., Ltd. Class H
0.43
-0.32
-42.67%
HK:2145
Shanghai Chicmax Cosmetics Co., Ltd. Class H
81.50
42.27
107.75%
HK:2023
China Ludao Technology Co. Ltd.
0.82
-0.06
-6.82%
HK:1044
Hengan International Group Co
23.10
0.27
1.19%

Cheerwin Group Limited Corporate Events

Cheerwin Group Limited Successfully Concludes AGM with All Resolutions Passed
Jun 19, 2025

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.

Cheerwin Group Limited Announces 2025 Annual General Meeting Agenda
Apr 29, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 28, 2025