BaWang International (Group) Holding Limited (1338) AI Stock Analysis

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BaWang International (Group) Holding Limited

(HKEX:1338)

Select Model

Rating:55.1Neutral

Price Target:HKD 0.03▼(-2.94% Downside)

Action:reiterated

Date:09/17/26

The overall score reflects a cautious balance between a solidly deleveraged balance sheet and meaningful risks from weak profitability and volatile, deteriorating cash generation, which weigh heavily on the outlook. Secondary factors show flat-to-soft technical momentum and a merely moderate valuation, reinforcing a neutral-to-guarded view rather than a strong buy or sell signal.

Positive Factors

Stable revenue and gross marginSteady revenue growth alongside a gross margin near 50% indicates continuing customer demand and resilient product economics. This combination gives BaWang a durable base for maintaining competitiveness and supports the potential for improved operating leverage if profitability stabilizes.

Negative Factors

Sharp profitability deteriorationThe sustained decline in net margin shows that stable revenue has not translated into durable earnings. With operating profit nearly breakeven in 2025, BaWang has less buffer to absorb cost pressure and less internally generated profit to fund growth or strengthen shareholder returns.

BaWang International (Group) Holding Limited (1338) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 101.20M
Dividend Yield: ―
Average Volume (3M): 1.58M
Price to Earnings (P/E): 12.1
Beta (1Y): 0.48
Revenue Growth: 6.15%
EPS Growth: 200.00%
Country: Hong Kong
Employees: 262
Sector: Consumer Defensive
Sector Strength: 62
Industry: Household & Personal Products

BaWang International (Group) Holding Limited Business Overview & Revenue Model

Company Description

BaWang International (Group) Holding Limited, operating with its subsidiaries, specializes in the development, production, sale, and distribution of products based on traditional Chinese herbs. The company's reach extends across the People's Republic...

BaWang International (Group) Holding Limited Financial Statement Overview

Summary

Strong deleveraging and growing equity underpin balance sheet resilience, but weakening net profit margins and highly volatile, collapsing free cash flow leave overall financial performance only moderately attractive.

Income Statement

55Neutral

Balance Sheet

75Positive

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	270.88M	273.09M	252.95M	237.65M	246.34M	273.60M
Gross Profit	146.26M	138.85M	128.78M	119.72M	92.52M	99.03M
EBITDA	16.49M	18.51M	22.71M	31.50M	15.19M	25.01M
Net Income	7.73M	3.88M	6.55M	13.63M	-19.32M	-9.08M
Balance Sheet
Total Assets	244.41M	226.53M	235.43M	230.33M	244.23M	295.58M
Cash, Cash Equivalents and Short-Term Investments	111.00M	115.60M	120.32M	88.27M	74.40M	63.27M
Total Debt	32.87M	4.42M	15.89M	25.10M	33.28M	53.45M
Total Liabilities	93.67M	76.97M	89.97M	90.83M	118.21M	149.72M
Stockholders Equity	150.74M	149.56M	145.47M	139.50M	126.02M	145.85M
Cash Flow
Free Cash Flow	21.07M	2.21M	12.19M	1.78M	22.15M	-65.00K
Operating Cash Flow	26.98M	19.12M	31.15M	4.05M	24.11M	1.60M
Investing Cash Flow	-7.04M	-60.71M	11.67M	19.35M	-177.00K	-50.52M
Financing Cash Flow	-5.24M	-7.06M	-10.16M	-9.07M	-11.28M	-11.44M

BaWang International (Group) Holding Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price0.03

Price Trends

50DMA0.03Negative

100DMA0.03Negative

200DMA0.03Negative

Market Momentum

MACD-0.00Positive

RSI46.56Neutral

STOCH-16.67Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1338, the sentiment is Negative. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.03, indicating a bearish trend. The MACD of -0.00 indicates Positive momentum. The RSI at 46.56 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:1338.

BaWang International (Group) Holding Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

HK:1338 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:2145	71Outperform	HKD 9.31B	11.32	25.77%	6.14%	23.19%	-22.44%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HK:1338	55Neutral	HKD 101.20M	12.05	5.15%	―	6.15%	200.00%
HK:0157	45Neutral	HKD 920.97M	-16.03	-12.81%	―	13.43%	7.72%
HK:2593	39Underperform	HKD 145.33M	-4.87	-20.22%	13.76%	-9.95%	-834.42%
HK:6993	33Underperform	HKD 15.49B	-170.12	-1.21%	6.45%	-2.44%	81.73%

* Consumer Defensive Sector Average

Performance Comparison

HK:1338 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:1338	BaWang International (Group) Holding Limited	0.03	-0.01	-15.00%
HK:0157	Natural Beauty Bio-Technology	0.46	-0.05	-9.80%
HK:2145	Shanghai Chicmax Cosmetics Co., Ltd. Class H	22.88	-59.68	-72.29%
HK:6993	Blue Moon Group Holdings Ltd.	2.79	0.04	1.60%
HK:2593	Herbs Generation Group Holdings Limited Class H	1.07	-0.13	-10.83%
HK:6883	Eternal Beauty Holdings Limited	2.03	0.05	2.53%

BaWang International (Group) Holding Limited Corporate Events

BaWang International Swings to Interim Profit Despite Slight Revenue Decline

Aug 27, 2026

BaWang International (Group) Holding Limited, a Cayman Islands-incorporated consumer products group listed in Hong Kong, focuses on branded goods sales in mainland China. Its business performance is driven by Chinese retail spending patterns and its...

BaWang Signals Return to Profit on Cost Cuts and Solar Savings

Aug 18, 2026

BaWang International (Group) Holding Limited has issued a positive profit alert, indicating it expects to post a modest operating profit of about RMB 1 million to 2 million for the first half of 2026, reversing an operating loss of RMB 2.3 million in...

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: Sep 17, 2026

BaWang International (Group) Holding Limited AI Stock Analysis