Golden Throat Holdings Group Co Ltd (6896) AI Stock Analysis

• Market Cap: HK$2.53B
• Dividend Yield: 14.62%
• Average Volume (3M): 825.69K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.12
• Revenue Growth: -2.70%
• EPS Growth: 2.19%
• Country: HK
• Employees: 874
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.12
• Shares Outstanding: 739,302,000
• 10 Day Avg. Volume: 764,600
• 30 Day Avg. Volume: 825,693
• PEG Ratio: 0.27
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 1.90
• P/FCF Ratio: 5.51
• 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: 75 Outperform
• Price Target: HK$4.00 ▲(12.99% Upside)

Golden Throat Holdings demonstrates strong financial performance with robust revenue growth and profitability, supported by a stable balance sheet. The valuation is attractive with a low P/E ratio and high dividend yield, making it appealing for value and income investors. However, technical indicators suggest mixed market momentum, which could pose short-term challenges.

Golden Throat Holdings Group Co Ltd Business Overview & Revenue Model

Company Description

Golden Throat Holdings Group Company Limited, an investment holding company, manufactures and sells pharmaceutical, healthcare food, and other products in the People's Republic of China. It offers Golden Throat lozenges over-the-counter medicine to relive symptoms of sore and dry throat, and hoarse voice caused by acute pharyngitis. It also provides Golden Throat lozenge series products that include Dule lozenges and sugar-free Dule lozenges in various flavors, such as orange, fructus momordicae, chrysanthemum, American ginseng, and hawthorn; Yinxingye tablet, which is designed to facilitate blood circulation, remove blood stasis, and dredge energy channels; and herbal vegetable beverages for soothing voice and relieving sore throats. The company also exports its products to the United States, Canada, Russia, the European Union, Australia, Southeast Asia, the Middle East, Mexico, and Africa. Golden Throat Holdings Group Company Limited was founded in 1956 and is headquartered in Liuzhou, the People's Republic of China.

How the Company Makes Money

Golden Throat Holdings Group Co Ltd generates revenue through multiple streams, predominantly from the sale of its diverse product lines in the food and beverage sector. The company capitalizes on its strong brand recognition and distribution network to reach consumers across various channels, including retail, online platforms, and food service establishments. Key revenue streams include direct sales of bottled beverages, herbal teas, and other health-oriented products. Additionally, the company may engage in strategic partnerships with distributors and retailers to expand its market reach and enhance product visibility. Factors contributing to its earnings include effective marketing strategies, consumer trends favoring healthier beverage options, and ongoing investment in product development to meet evolving consumer preferences.

Golden Throat Holdings Group Co Ltd Financial Statement Overview

Summary

Golden Throat Holdings showcases robust financial health with strong revenue growth, high profitability margins, and a stable balance sheet. Despite concerns about the lack of operating cash flow data for 2024, the company’s historical cash generation capacity and low leverage underscore its financial resilience and potential for continued growth.

Income Statement

Golden Throat Holdings has demonstrated strong revenue growth, with a 23.3% increase from 2023 to 2024, and maintained robust profitability with a gross profit margin of 75.5% and a net profit margin of 26.9% for 2024. The company's EBIT and EBITDA margins are also solid at 32.8% and 38.5%, respectively, indicating efficient operations and strong earnings before interest and taxes.

Balance Sheet

The company exhibits a healthy balance sheet with a low debt-to-equity ratio of 0.29, highlighting conservative leverage. Additionally, the return on equity is impressive at 21.7%, reflecting efficient use of shareholder funds. The equity ratio of 65.1% further indicates a strong equity base relative to total assets, suggesting financial stability.

Cash Flow

Although the free cash flow in 2024 is not available, the company previously generated positive free cash flow in 2023, which grew by 90.3% from 2022 to 2023. However, the absence of operating cash flow in 2024 is a concern, as it limits the ability to assess current cash generation efficiency relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.19B	961.38M	992.01M	820.54M	646.94M
Gross Profit	894.18M	697.72M	720.92M	577.74M	475.64M
EBITDA	456.65M	410.75M	424.93M	281.80M	233.31M
Net Income	318.63M	250.16M	281.22M	187.64M	154.05M
Balance Sheet
Total Assets	2.25B	2.30B	2.30B	1.95B	1.69B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.07B	925.51M	802.84M	705.54M
Total Debt	426.92M	412.34M	272.59M	235.00M	152.45M
Total Liabilities	784.87M	748.34M	760.18M	588.04M	464.75M
Stockholders Equity	1.47B	1.55B	1.54B	1.37B	1.22B
Cash Flow
Free Cash Flow	408.65M	221.30M	255.30M	116.23M	83.80M
Operating Cash Flow	475.87M	238.84M	271.15M	164.89M	167.75M
Investing Cash Flow	-41.60M	-59.67M	36.59M	-145.11M	-81.26M
Financing Cash Flow	-335.18M	-79.38M	-142.01M	-10.21M	49.36M

Golden Throat Holdings Group Co Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6896, the sentiment is Negative. The current price of 3.54 is above the 20-day moving average (MA) of 3.51, above the 50-day MA of 3.51, and below the 200-day MA of 3.78, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.69 is Neutral, neither overbought nor oversold. The STOCH value of 6.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6896.

Golden Throat Holdings Group Co Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6896	―	HK$2.53B	8.85	21.47%	14.62%	-2.70%	2.19%
2161	―	HK$2.44B	12.33	19.22%	7.11%	20.65%	63.21%
2877	―	HK$6.47B	7.25	10.85%	6.01%	-20.64%	-25.39%
2348	―	HK$1.79B	9.39	5.34%	5.25%	2.89%	-68.83%
3737	―	HK$525.14M	23.57	1.87%	8.06%	-1.99%	-81.52%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1498	―	HK$169.82M	―	-33.22%	―	-17.32%	55.74%

Golden Throat Holdings Group Co Ltd Corporate Events

Golden Throat Holdings Reports Significant Revenue Decline in H1 2025

Golden Throat Holdings Group Co Ltd reported a significant decline in its financial performance for the first half of 2025, with revenue dropping by 39.1% to RMB319.2 million and gross profit decreasing by 37.1% to RMB246.3 million compared to the same period in 2024. The company also saw a 37.6% reduction in profit attributable to equity holders, amounting to RMB83.7 million, and decided not to declare an interim dividend, reflecting challenges in its operational and market environment.

The most recent analyst rating on (HK:6896) stock is a Buy with a HK$4.00 price target. To see the full list of analyst forecasts on Golden Throat Holdings Group Co Ltd stock, see the HK:6896 Stock Forecast page.

Golden Throat Announces Board Meeting to Review Interim Results

Golden Throat Holdings Group Co Ltd has announced a board meeting scheduled for August 28, 2025, to review and approve the interim results for the first half of 2025 and discuss the potential declaration and payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and investor relations.

Golden Throat Holdings Issues Profit Warning Amid Industry Changes

Golden Throat Holdings Group Co Ltd has issued a profit warning, anticipating a 37% decrease in profit for the first half of 2025 compared to the same period in 2024. This decline is attributed to changes in the industry landscape and adjustments in the company’s marketing strategy, which led to reduced purchases from distributor customers and consequently decreased sales and profits.