Kwong Man Kee Group Ltd (8023) AI Stock Analysis

• Market Cap: HK$191.18M
• Dividend Yield: 1.75%
• Average Volume (3M): 11.80K
• Price to Earnings (P/E): 23.4
• Beta (1Y): -0.44
• Revenue Growth: 14.72%
• EPS Growth: -26.49%
• Country: HK
• Employees: 56
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.01
• Shares Outstanding: 597,444,000
• 10 Day Avg. Volume: 22,200
• 30 Day Avg. Volume: 11,800
• PEG Ratio: -0.63
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 709.14
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: HK$0.29 ▲(5.00% Upside)

Kwong Man Kee Group Ltd's overall stock score is primarily influenced by its mixed financial performance, with positive revenue growth but declining profitability and weak cash flow. Technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates strong demand for its products and effective market strategies, supporting long-term business stability.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability, providing flexibility to invest in growth opportunities and weather economic downturns.

Market Position

Focusing on quality and safety standards strengthens the company's market position, building consumer trust and potentially increasing market share over time.

Negative Factors

Profitability Decline

Declining profitability margins suggest challenges in cost management, which could hinder long-term financial performance if not addressed.

Cash Flow Issues

Weak cash flow generation limits the company's ability to reinvest in growth and manage debt, posing risks to financial health and operational flexibility.

Profitability Challenges

Decreased operational efficiency can impact long-term profitability, requiring strategic adjustments to improve cost management and margin sustainability.

Kwong Man Kee Group Ltd Business Overview & Revenue Model

Company Description

Kwong Man Kee Group Ltd (8023) is a Hong Kong-based company primarily engaged in the manufacturing and distribution of food products, with a particular focus on the production of processed seafood and meat products. The company operates in the food and beverage sector, catering to both retail and wholesale markets. Kwong Man Kee Group is known for its commitment to quality and safety in food production, offering a range of products that include frozen seafood, ready-to-eat meals, and other processed food items.

How the Company Makes Money

Kwong Man Kee Group Ltd generates revenue primarily through the sale of its food products across various channels, including supermarkets, food service operators, and export markets. The company operates a revenue model centered on product sales, leveraging bulk orders from restaurants and retailers to secure consistent income. Key revenue streams include direct sales of processed seafood and meat products, which are often marketed under the company’s brand as well as private labels for other retailers. Additionally, the company may benefit from strategic partnerships with distributors and retailers, enhancing its market reach and distribution capacity. Seasonal demand fluctuations in the food industry and changing consumer preferences also play a role in shaping its earnings potential.

Kwong Man Kee Group Ltd Financial Statement Overview

Summary

Kwong Man Kee Group Ltd shows positive revenue growth but declining profitability margins, indicating challenges in cost management. The balance sheet is strong with low leverage, but cash flow issues are concerning, suggesting potential risks if not addressed.

Income Statement

Kwong Man Kee Group Ltd has shown a positive revenue growth rate of 10.53% in the latest year, indicating a recovery from previous declines. However, the gross profit margin has decreased from 36.13% to 30.98%, and the net profit margin has also declined from 9.39% to 4.91%. This suggests pressure on profitability despite revenue growth. The EBIT and EBITDA margins have similarly decreased, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The company's balance sheet is relatively strong, with a low debt-to-equity ratio of 0.0715, indicating conservative leverage. Return on equity has decreased to 6.43%, reflecting lower profitability. The equity ratio remains healthy, suggesting a stable financial position with adequate equity backing the assets.

Cash Flow

Cash flow performance is concerning, with a significant decline in free cash flow growth of -102.38%. The operating cash flow to net income ratio is low at 0.024, indicating potential issues in converting income into cash. The free cash flow to net income ratio is moderate at 0.251, but overall cash generation appears weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	151.03M	166.94M	147.56M	170.61M	110.42M	118.87M
Gross Profit	52.10M	51.72M	53.31M	53.85M	35.74M	41.78M
EBITDA	19.55M	16.40M	22.46M	27.27M	12.06M	21.97M
Net Income	11.05M	8.19M	13.86M	19.12M	7.46M	15.57M
Balance Sheet
Total Assets	197.31M	179.90M	181.26M	174.30M	149.80M	129.92M
Cash, Cash Equivalents and Short-Term Investments	40.95M	33.45M	50.55M	38.47M	23.87M	34.55M
Total Debt	16.50M	9.11M	15.53M	13.96M	15.94M	9.98M
Total Liabilities	64.35M	50.09M	54.81M	55.62M	47.99M	29.52M
Stockholders Equity	131.05M	127.35M	125.08M	118.25M	102.10M	100.64M
Cash Flow
Free Cash Flow	-12.40M	294.87K	18.71M	23.86M	-4.15M	16.65M
Operating Cash Flow	-11.58M	1.18M	20.00M	24.20M	148.11K	17.57M
Investing Cash Flow	-726.89K	-349.60K	-768.00K	-6.48M	-9.71M	-906.53K
Financing Cash Flow	-2.11M	-13.68M	-7.45M	-7.22M	-1.09M	-1.70M

Kwong Man Kee Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 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:8023, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.31, below the 50-day MA of 0.31, and below the 200-day MA of 0.31, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 64.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8023.

Kwong Man Kee Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8601	78 Outperform	HK$216.00M	7.34	18.71%	5.36%	4.57%	8.55%
2663	64 Neutral	HK$164.29M	4.55	8.56%	26.42%	-32.31%	-51.89%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1582	61 Neutral	HK$167.50M	3.97	6.32%	10.00%	27.42%	-32.34%
0368	61 Neutral	HK$332.00M	17.58	9.06%	4.02%	6.27%	―
8023	56 Neutral	HK$191.18M	23.36	6.14%	1.75%	14.72%	-26.49%
1865	49 Neutral	HK$195.24M	-0.63	-16.00%	―	9.19%	84.15%