China Oral Industry Group Holdings Limited (8406) AI Stock Analysis

• Market Cap: HK$82.08M
• Dividend Yield: N/A
• Average Volume (3M): 2.95M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: 9.29%
• EPS Growth: 18.01%
• Country: HK
• Employees: 608
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): N/A
• Shares Outstanding: 1,368,000,000
• 10 Day Avg. Volume: 4,261,000
• 30 Day Avg. Volume: 2,946,333
• PEG Ratio: 0.27
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.48
• P/FCF Ratio: -19.06
• 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: 46 Neutral
• Price Target: HK$0.06 ▼(-14.29% Downside)

The score is held down primarily by deteriorating profitability and volatile cash flow, alongside a clear technical downtrend (price below major moving averages and negative MACD). Low leverage provides some balance-sheet support, but valuation signals are impaired by losses and the absence of a dividend.

Positive Factors

Low Leverage

A very low debt-to-equity ratio provides durable financial flexibility, lowering bankruptcy risk and preserving capacity to fund R&D, marketing, or M&A from internal resources. This conservative capital structure supports resilience across economic cycles and strategic optionality.

Recent Revenue Growth

Positive revenue growth indicates sustained demand or recovery in core oral-care products. Over a multi-month horizon, top-line expansion can support operating leverage, better utilization of manufacturing, and investment in brand-building, aiding long-term market position if margins stabilize.

Diversified Distribution & R&D

A multi-channel distribution network plus an R&D focus provides structural advantages: broader market reach, reduced single-channel risk, and product pipeline potential. These capabilities support sustainable market share gains and resilience as consumer purchase habits evolve toward omnichannel retailing.

Negative Factors

Margin Compression

A steep, multi-year decline in gross margin signals structural cost pressures or weakened pricing power. Persisting margin erosion undermines the company's ability to convert revenue into sustainable profits, constrains reinvestment and margin recovery efforts, and raises medium-term profitability risk.

Sustained Negative Profitability

Ongoing negative net and operating margins indicate the business is not generating sufficient returns to cover operating costs. Over months to years this erodes equity, depresses ROE, limits ability to reward shareholders, and increases reliance on external funding for growth or restructuring.

Volatile Cash Flow

Intermittent negative operating and free cash flow create persistent liquidity and execution risks. Volatile cash generation can force reliance on external financing, restrict capex and R&D spending, and impede long-term initiatives required to restore margins and competitive positioning.

China Oral Industry Group Holdings Limited Business Overview & Revenue Model

Company Description

China Oral Industry Group Holdings Limited, an investment holding company, designs, manufactures, and markets inflatable products and related accessories in the People's Republic of China, Europe, Australia, Oceania, North America, rest of Asia, Central and South America, and Africa. The company offers inflatable playgrounds with air blowers; other inflatable products; and related accessories, as well as PVC coating, PVC laminated oxford, and plastic products under the Happyhop, Happyhop Pro, and Action Air brands. It is also involved in the subcontracting works, including sewing, printing, and packaging. The company was formerly known as China Oral Industry Group Holdings Limited. China Oral Industry Group Holdings Limited was founded in 2003 and is headquartered in Zhongshan, the People's Republic of China.

How the Company Makes Money

China Oral Industry Group Holdings Limited generates revenue primarily through the sale of its oral care products, which are distributed across various retail channels including supermarkets, pharmacies, and online platforms. The company's revenue model is built on a combination of direct sales and partnerships with distributors to increase market penetration. Key revenue streams include the sale of branded toothpaste and mouthwash, which are widely recognized for their quality and effectiveness. Additionally, the company may engage in co-branding or licensing agreements with other firms to expand its product offerings and reach. Factors contributing to its earnings include market demand for oral health products, brand loyalty, and the effectiveness of its marketing strategies in promoting new and existing products.

China Oral Industry Group Holdings Limited Financial Statement Overview

Summary

Income statement weakness (revenue decline, shrinking gross margin, negative net/EBITDA margins) is partly offset by a conservatively levered balance sheet (low debt-to-equity). Cash flow remains volatile with periods of negative operating/free cash flow, elevating stability risk.

Income Statement

The company has shown a decline in revenue over recent years. The gross profit margin has decreased from 28.7% in 2020 to 16.1% in 2024, indicating rising costs or pricing pressures. The net profit margin has turned negative, with a net loss in recent periods. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The company's debt-to-equity ratio is low at 0.04, indicating conservative leverage. However, the equity ratio has decreased slightly over time, suggesting a decline in asset efficiency. ROE has been negative due to consecutive net losses, pointing to inefficiencies in generating returns on equity.

Cash Flow

The firm experienced volatility in operating cash flow, with periods of negative cash flow, impacting liquidity. Free cash flow has fluctuated significantly, with recent years showing declines. The free cash flow to net income ratio is not meaningful due to negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	215.56M	230.96M	166.92M	212.52M	294.92M	260.74M
Gross Profit	32.97M	37.25M	27.04M	17.57M	59.86M	74.91M
EBITDA	-9.56M	-7.77M	-12.55M	-27.38M	8.95M	35.12M
Net Income	-13.25M	-16.44M	-18.63M	-34.85M	-2.13M	23.56M
Balance Sheet
Total Assets	194.11M	202.46M	183.78M	190.85M	202.91M	180.80M
Cash, Cash Equivalents and Short-Term Investments	74.77M	67.05M	76.32M	60.28M	25.59M	52.11M
Total Debt	2.93M	4.68M	14.57M	15.79M	19.99M	22.09M
Total Liabilities	54.51M	95.32M	79.11M	67.70M	84.20M	58.89M
Stockholders Equity	139.60M	107.14M	104.67M	123.15M	118.71M	121.91M
Cash Flow
Free Cash Flow	-29.49M	-5.77M	29.35M	14.90M	-21.03M	19.31M
Operating Cash Flow	-29.44M	-5.72M	31.32M	28.15M	-19.15M	34.63M
Investing Cash Flow	4.56M	8.79M	1.08M	-56.86M	-842.00K	-15.23M
Financing Cash Flow	27.30M	868.00K	-6.00M	31.63M	-5.45M	-10.62M

China Oral Industry Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8406, the sentiment is Negative. The current price of 0.07 is above the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.07, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8406.

China Oral Industry Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3830	53 Neutral	HK$106.00M	-17.70	-32.53%	―	-6.48%	-38.10%
8545	51 Neutral	HK$44.12M	-17.62	-1.26%	―	0.47%	-195.45%
1348	49 Neutral	HK$275.68M	-14.16	-50.25%	―	-61.76%	75.15%
8406	46 Neutral	HK$82.08M	-4.47	-10.00%	―	9.29%	18.01%
6918	42 Neutral	HK$123.66M	-1.65	-19.89%	―	84.26%	44.41%
0765	40 Neutral	HK$137.31M	-6.65	-36.17%	―	-13.96%	64.58%