KangLi International Holdings Limited (6890) AI Stock Analysis

• Market Cap: HK$221.28M
• Dividend Yield: N/A
• Average Volume (3M): 30.80K
• Price to Earnings (P/E): 5.0
• Beta (1Y): -0.06
• Revenue Growth: -20.52%
• EPS Growth: -68.47%
• Country: HK
• Employees: 566
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.02
• Shares Outstanding: 606,252,000
• 10 Day Avg. Volume: 59,400
• 30 Day Avg. Volume: 30,800
• PEG Ratio: 0.16
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 0.99
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$0.39 ▲(1.84% Upside)

KangLi International Holdings Limited shows strong financial performance with robust revenue and profit growth, supported by effective cash flow management. The stock's undervaluation, as indicated by a low P/E ratio, presents an attractive investment opportunity. However, technical indicators suggest bearish momentum, which could pose short-term risks. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Cash Generation Ability

Strong free cash flow generation indicates effective cash management and operational efficiency, providing financial flexibility for future investments.

Balance Sheet Health

A solid equity base and favorable equity ratio reflect financial stability, ensuring the company can withstand economic fluctuations and invest in growth opportunities.

Profit Margin Improvement

Improved profit margins demonstrate effective cost management, enhancing profitability and providing a buffer against market volatility.

Negative Factors

Revenue Decline

A significant decline in revenue growth indicates potential challenges in market demand or competitive pressures, which could impact long-term profitability.

Earnings Decline

A sharp decline in EPS growth suggests reduced profitability, possibly due to increased costs or declining sales, affecting investor confidence and future earnings potential.

Leverage Concerns

Moderate leverage levels could strain financial resources, limiting the company's ability to invest in growth and increasing vulnerability to interest rate changes.

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 through the sale of its consumer products across different markets. The company's primary revenue streams include direct sales of its manufactured goods to retailers and distributors, as well as e-commerce platforms. Additionally, the company may benefit from strategic partnerships with suppliers and retail chains that enhance its market reach and distribution capabilities. The ongoing demand for home and personal care products, along with the company's efforts to innovate and expand its product lines, contribute significantly to its earnings. Furthermore, KangLi may also explore opportunities in emerging markets, which can provide additional revenue growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.67B	1.94B	1.93B	1.49B	2.04B	1.61B
Gross Profit	150.97M	213.72M	180.29M	35.66M	234.20M	176.47M
EBITDA	81.88M	155.17M	140.35M	10.83M	199.94M	153.97M
Net Income	40.85M	92.70M	77.45M	-31.25M	98.10M	72.41M
Balance Sheet
Total Assets	1.72B	1.70B	1.78B	1.65B	1.91B	1.89B
Cash, Cash Equivalents and Short-Term Investments	177.16M	239.10M	168.99M	213.32M	216.06M	243.54M
Total Debt	448.15M	378.42M	531.21M	458.62M	533.68M	556.03M
Total Liabilities	834.74M	822.09M	996.09M	941.60M	1.15B	1.21B
Stockholders Equity	885.08M	875.06M	782.28M	704.57M	761.22M	682.15M
Cash Flow
Free Cash Flow	81.88M	232.21M	-59.64M	120.14M	39.26M	-110.71M
Operating Cash Flow	100.13M	247.47M	-33.57M	143.77M	121.52M	-86.89M
Investing Cash Flow	-15.43M	-13.14M	-44.48M	-22.28M	-80.46M	-21.25M
Financing Cash Flow	-97.64M	-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: Positive
• 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 above the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.36, and below the 200-day MA of 0.39, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.28 is Neutral, neither overbought nor oversold. The STOCH value of 30.20 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
1203	71 Outperform	HK$735.15M	4.62	6.32%	5.81%	16.92%	146.69%
6890	68 Neutral	HK$221.28M	5.01	4.73%	―	-20.52%	-68.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1938	61 Neutral	HK$267.95M	0.98	19.13%	―	-13.26%	63.38%
0103	51 Neutral	HK$1.61B	76.14	1.06%	2.77%	-8.90%	-79.06%
1231	46 Neutral	HK$1.36B	-85.00	-7.12%	―	-49.95%	-310.53%
2738	45 Neutral	HK$174.00M	-0.26	-296.26%	―	-49.77%	-1095.34%