KangLi International Holdings Limited (6890) AI Stock Analysis

• Market Cap: HK$227.34M
• Dividend Yield: N/A
• Average Volume (3M): 57.87K
• Price to Earnings (P/E): 5.1
• Beta (1Y): -0.02
• Revenue Growth: -20.52%
• EPS Growth: -68.47%
• Country: HK
• Employees: 566
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Steel
• EPS (TTM): 0.02
• Shares Outstanding: 606,252,000
• 10 Day Avg. Volume: 136,400
• 30 Day Avg. Volume: 57,866
• 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: HK$0.50
• Price Target Upside: 31.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: HK$0.50 ▲(31.58% Upside)

KangLi International Holdings Limited's stock score is primarily driven by its strong financial performance and attractive valuation, suggesting potential undervaluation. However, bearish technical indicators and a lack of dividend yield present risks. The company's ability to manage leverage and operational costs will be critical for future performance.

KangLi International Holdings Limited Business Overview & Revenue Model

Company Description

KangLi International Holdings Limited, together with its subsidiaries, manufactures and sells galvanized steel products in the People's Republic of China, South Korea, Thailand, and internationally. It operates in three segments: Hard Steel Coil, Unpainted Galvanised Steel Products, and Painted Galvanised Steel Products. The Hard Steel Coil segment provides cold-rolled hard steel coils. The Unpainted Galvanised Steel Products segment offers hot-dipped galvanized/zinc-coated steel coils and sheets. The Painted Galvanised Steel Products segment provides hot-dipped color-coated galvanized steel coils and sheets. It sells its products to midstream steel product processors; and home appliance manufacturers for use in the production of refrigerators, washing machines, and ovens. KangLi International Holdings Limited was founded in 2003 and is headquartered in Changzhou, China.

How the Company Makes Money

KangLi International Holdings Limited generates revenue mainly through the sale of its galvanized and cold rolled steel products. The company's key revenue streams include sales to industrial customers in the construction, home appliance, and automotive sectors. These products are crucial for manufacturing durable goods, and the company benefits from established relationships with various manufacturers and distributors. Additionally, the company may leverage strategic partnerships and agreements with suppliers and customers to enhance its market position and ensure a steady demand for its steel products. Fluctuations in steel prices, production costs, and demand from end-use industries are significant factors influencing the company's earnings.

KangLi International Holdings Limited Financial Statement Overview

Summary

KangLi International Holdings Limited demonstrates robust financial health with strengths across income, balance sheet, and cash flow metrics. Revenue and profit growth highlight effective strategies, while cash flow improvements reinforce financial stability. However, attention to leverage and cost management will be crucial to sustain and enhance performance in the competitive steel industry.

Income Statement

KangLi International Holdings Limited has shown consistent revenue growth over the years, with a notable increase from 2022 to 2023. The gross profit margin has improved, reflecting better cost management, and the net profit margin has also shown positive growth. While EBIT and EBITDA margins are healthy, the company must continue to manage operational costs to sustain profitability. Overall, the income statement indicates strong financial performance with room for further improvement.

Balance Sheet

The balance sheet shows a solid equity base with a favorable equity ratio, indicating financial stability. However, the debt-to-equity ratio suggests a moderate level of leverage, which could pose risks if not managed carefully. The return on equity has improved, demonstrating efficient use of shareholder funds. Overall, the balance sheet is stable, but maintaining lower leverage would strengthen financial health.

Cash Flow

Cash flow analysis reveals strong free cash flow generation, with significant growth from previous periods. The operating cash flow has improved, indicating better cash management and operational efficiency. The free cash flow to net income ratio suggests effective conversion of profits into cash. Overall, the cash flow statement shows a positive trajectory, supporting the company's financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.94B	1.93B	1.49B	2.04B	1.61B
Gross Profit	213.72M	180.29M	35.66M	234.20M	176.47M
EBITDA	155.17M	140.35M	10.83M	199.94M	153.97M
Net Income	92.70M	77.45M	-31.25M	98.10M	72.41M
Balance Sheet
Total Assets	1.70B	1.78B	1.65B	1.91B	1.89B
Cash, Cash Equivalents and Short-Term Investments	239.10M	168.99M	213.32M	216.06M	243.54M
Total Debt	378.42M	531.21M	458.62M	533.68M	556.03M
Total Liabilities	822.09M	996.09M	941.60M	1.15B	1.21B
Stockholders Equity	875.06M	782.28M	704.57M	761.22M	682.15M
Cash Flow
Free Cash Flow	232.21M	-59.64M	120.14M	39.26M	-110.71M
Operating Cash Flow	247.47M	-33.57M	143.77M	121.52M	-86.89M
Investing Cash Flow	-13.14M	-44.48M	-22.28M	-80.46M	-21.25M
Financing Cash Flow	-171.72M	19.20M	-121.97M	-62.52M	138.77M

KangLi International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6890, the sentiment is Negative. The current price of 0.38 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.43, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 38.75 is Neutral, neither overbought nor oversold. The STOCH value of 45.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6890.

KangLi International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6890	64 Neutral	HK$227.34M	5.14	4.73%	―	-20.52%	-68.47%
Sector *	61 Neutral	$10.31B	6.18	0.76%	2.94%	3.30%	-36.34%
8NW	―	€101.63M	90.00	-0.96%	―	―	―
CW7	―	€180.26M	33.06	1.79%	―	―	―
GUJB	―	€89.23M	5.00	5.38%	―	―	―
1938	74 Outperform	HK$409.51M	1.78	18.42%	―	8.99%	11.60%
2738	45 Neutral	HK$177.00M	4.66	-19.49%	―	-12.06%	-204.44%

KangLi International Holdings Limited Corporate Events

KangLi International Holdings to Review Interim Results and Dividend

KangLi International Holdings Limited has announced that its board of directors will hold a meeting on August 22, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the possibility of declaring an interim dividend, which could impact the company’s financial strategy and shareholder returns.

KangLi International Issues Profit Warning Amid Declining Sales

KangLi International Holdings Limited has issued a profit warning, indicating a significant expected decrease in net profit for the first half of 2025, with projections not exceeding RMB12 million compared to RMB62.2 million in the same period of 2024. This downturn is attributed to a decline in sales volume and selling prices, alongside a reduced gross profit margin due to increased production costs. The company’s financial results for the period are still being finalized and may be subject to adjustments.

KangLi International Holdings Limited AGM Resolutions Passed with Strong Support

KangLi International Holdings Limited, a company incorporated in the Cayman Islands with limited liability and listed on the Hong Kong Stock Exchange, held its Annual General Meeting (AGM) on June 13, 2025. At this meeting, all proposed resolutions, including the adoption of financial statements, re-election of directors, and granting of mandates for share issuance and repurchase, were passed with overwhelming shareholder support. This outcome reflects strong shareholder confidence in the company’s governance and strategic direction.