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Kingworld Medicines Group Ltd. (1110) AI Stock Analysis

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HK:1110

Kingworld Medicines Group Ltd.

(HKEX:1110)

Select Model
Rating:51Neutral
Price Target:HKD 0.38â–²(1.87% Upside)
Action:reiterated
Date:10/15/26

The score is held back mainly by weakening financial performance (revenue decline and sharply lower margins) and bearish technical signals (below key moving averages with negative MACD). Valuation provides partial support through a high dividend yield, but the P/E is only moderate and does not fully offset the fundamental and trend pressures.

Positive Factors
Stable Gross MarginRecent gross margin staying in the mid-to-high 20% range indicates the underlying product distribution economics have remained comparatively resilient. This provides a base for recovery if sales stabilize, although it has not prevented pressure on operating profitability.
Negative Factors
Revenue DeclineRevenue weakening in consecutive years signals that sales momentum has deteriorated after strong growth during 2021–2023. Unless demand or channel volumes recover, the smaller revenue base can constrain operating leverage, investment capacity, and the company’s ability to rebuild earnings.

Kingworld Medicines Group Ltd. (1110) vs. iShares MSCI Hong Kong ETF (EWH)

-40%-30%-20%-10%0%10%20%HK:1110-29.25%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 221.18M
Dividend Yield
8.45%
Average Volume (3M)
2.01M
Price to Earnings (P/E)
16.8
Beta (1Y)
0.18
Revenue Growth
-13.82%
EPS Growth
112.24%
Country
Hong Kong
Employees
711
Sector
Healthcare
Sector Strength
51
Industry
Medical - Distribution

Kingworld Medicines Group Ltd. Business Overview & Revenue Model

Company Description

Kingworld Medicines Group Limited functions as an investment holding company primarily engaged in the distribution of imported, branded pharmaceutical and healthcare items. The company also supplies a range of medical products, health goods, and gene...

How the Company Makes Money

Kingworld Medicines Group Ltd. primarily makes money by selling pharmaceutical and healthcare products through wholesale/distribution and related sales activities. Key revenue streams typically include: (1) distribution/wholesale revenue from purchas...

Kingworld Medicines Group Ltd. Financial Statement Overview

Summary

Financial performance is stable but weakening. Revenue turned down in 2024 and fell more meaningfully in 2025, while profitability deteriorated sharply (net margin ~1.2% in 2025 vs ~3.9% in 2024). Gross margin held in the mid-to-high 20% range, but rising leverage (debt-to-equity ~0.70 in 2025 vs ~0.39 in 2021) and compressed ROE (~1.8% in 2025) add risk. Cash flow remains positive, but operating and free cash flow have been volatile, reducing confidence in durability.

Income Statement

46Neutral

Balance Sheet

58Neutral

Cash Flow

52Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue787.87M917.34M1.06B1.08B957.70M847.39M
Gross Profit240.04M247.91M270.45M280.67M277.63M263.60M
EBITDA80.78M82.70M110.77M125.48M118.07M116.00M
Net Income11.47M11.28M41.56M38.10M22.74M30.32M
Balance Sheet
Total Assets1.30B1.44B1.42B1.34B1.26B1.21B
Cash, Cash Equivalents and Short-Term Investments188.35M274.70M249.60M194.03M256.17M198.41M
Total Debt438.04M434.05M402.44M354.43M290.68M238.96M
Total Liabilities648.92M753.86M710.04M638.30M569.15M493.19M
Stockholders Equity596.45M617.97M639.79M619.03M615.58M616.90M
Cash Flow
Free Cash Flow-1.18M54.92M94.73M-63.25M93.64M22.88M
Operating Cash Flow38.39M84.56M135.82M42.28M186.55M81.20M
Investing Cash Flow-15.51M-20.11M-27.64M-120.63M-84.05M-50.84M
Financing Cash Flow-60.57M-30.82M-47.61M4.37M-51.31M-87.20M

Kingworld Medicines Group Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price0.38

Price Trends

50DMA0.39Negative
100DMA0.41Negative
200DMA0.45Negative

Market Momentum

MACD-0.00Negative
RSI47.75Neutral
STOCH62.50Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1110, the sentiment is Negative. The current price of 0.38 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.39, and below the 200-day MA of 0.45, indicating a bearish trend. The MACD of -0.00 indicates Negative momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1110.

Kingworld Medicines Group Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (51)

Financial Indicators

HK:1110 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:0239HK:023977OutperformHKD 774.43M7.7613.59%7.44%10.63%39.44%
HK:0897HK:089759NeutralHKD 401.18M100.000.34%―-8.30%-44.44%
HK:0858HK:085854NeutralHKD 147.90M-0.13-154.56%―-7.12%-523.61%
Sector *51Neutral$7.86B-0.30-43.30%2.27%22.53%-2.21%
HK:1110HK:111051NeutralHKD 227.44M16.841.89%8.45%-13.82%112.24%
HK:0455HK:045544NeutralHKD 191.35M-2.73-14.55%―12.89%-2.56%
HK:1498HK:149842NeutralHKD 123.04M-4.04-21.66%―-6.71%43.14%

* Healthcare Sector Average

Performance Comparison

-40%-20%0%HK:1110HK:0858HK:0455HK:0897HK:1498HK:0239Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1110 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1110Kingworld Medicines Group Ltd.0.38-0.16-29.25%
HK:0858Extrawell Pharmaceutical Holdings Limited0.05-0.04-44.57%
HK:0455Tianda Pharmaceuticals Ltd.0.09-0.05-34.07%
HK:0897Wai Yuen Tong Medicine Holdings Limited0.36-0.10-21.74%
HK:1498PuraPharm Corp. Ltd.0.23-0.19-45.24%
HK:0239Pak Fah Yeow International Limited2.480.2511.09%

Kingworld Medicines Group Ltd. Corporate Events

Kingworld Medicines Narrows Shareholder Loss Despite Sharp Revenue Decline

Aug 27, 2026

Kingworld Medicines Group Ltd., a pharmaceutical and healthcare products distributor in mainland China with supplementary income from investment properties and equity interests, reported mixed interim results for the six months ended 30 June 2026. Th...

Kingworld Medicines Schedules Board Meeting to Review Interim Results and Dividend

Aug 14, 2026

Kingworld Medicines Group Ltd. has announced that its board of directors will convene on 27 August 2026 in Hong Kong to review and approve the unaudited interim results for the six months ended 30 June 2026. The meeting will also consider the recomme...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 15, 2026