Kwung's Holdings Limited (1925) AI Stock Analysis

• Market Cap: HK$441.50M
• Dividend Yield: 8.18%
• Average Volume (3M): 125.53K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.02
• Revenue Growth: 21.99%
• EPS Growth: 11.36%
• Country: HK
• Employees: 614
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.06
• Shares Outstanding: 405,042,000
• 10 Day Avg. Volume: 98,200
• 30 Day Avg. Volume: 125,533
• PEG Ratio: 0.04
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -7.33
• 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: 74 Outperform
• Price Target: HK$1.00 ▼(-8.26% Downside)

Kwung's Holdings Limited scores well due to strong financial performance and attractive valuation metrics, particularly its low P/E ratio and high dividend yield. However, technical indicators suggest caution due to potential overbought conditions, and liquidity concerns from negative free cash flow warrant attention.

Kwung's Holdings Limited Business Overview & Revenue Model

Company Description

Kwung's Holdings Limited, an investment holding company, designs, manufactures, supplies, and trades in home fragrance, decoration, and other products. It offers home fragrance candles and fragrance diffusers; and wax, metal, glass, and aromatherapy products. It also engages in the provision of inspection and testing services; wholesale and retail of household items and handicrafts; and import and export of self-employed or agent goods and technologies. The company sells its products through self-operated stores and online. It operates in France, the United Kingdom, the Netherlands, Germany, Canada, Australia, and the People's Republic of China. The company was incorporated in 2018 and is headquartered in Ningbo, the People's Republic of China. Kwung's Holdings Limited is a subsidiary of King Harmony Limited.

How the Company Makes Money

Kwung's Holdings generates revenue through multiple streams. Primarily, the company earns income from its property development projects by selling residential and commercial units, as well as from leasing properties which provide a steady rental income. Additionally, the company invests in financial services, earning returns on investments in stocks, bonds, and other financial instruments. Trading of consumer goods also contributes to revenue, where the company engages in the distribution and sales of various products. Strategic partnerships with other firms in real estate and finance further enhance its revenue potential, allowing for collaborative projects and shared resources that optimize profitability.

Kwung's Holdings Limited Financial Statement Overview

Summary

Kwung's Holdings Limited shows strong revenue and profit growth with improved margins and a solid equity position. However, negative free cash flow and low operating cash flow to net income ratio highlight potential liquidity concerns.

Income Statement

Kwung's Holdings Limited demonstrated strong revenue growth, with a 24.1% increase from 2023 to 2024. The gross profit margin improved to 22.4%, and the net profit margin increased to 11.8%, indicating enhanced profitability. EBIT and EBITDA margins also showed positive trends, reflecting efficient cost management. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.55, indicating moderate leverage. The equity ratio stands at 52.8%, showcasing a strong equity base. Return on equity improved to 22.4%, reflecting efficient use of equity to generate profits. However, the increase in total debt warrants monitoring for future leverage risks.

Cash Flow

Kwung's Holdings Limited experienced a decline in free cash flow, with a negative free cash flow of -66.5 million in 2024. The operating cash flow to net income ratio is low at 0.04, suggesting challenges in converting profits into cash. Despite this, the company has managed its financing activities effectively, maintaining liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.02B	1.00B	806.55M	718.67M	631.39M	472.18M
Gross Profit	225.88M	224.19M	162.13M	134.40M	121.13M	108.15M
EBITDA	110.10M	108.76M	101.75M	60.39M	62.29M	55.53M
Net Income	90.26M	118.60M	60.65M	52.60M	49.00M	40.85M
Balance Sheet
Total Assets	1.11B	1.00B	754.22M	662.35M	546.49M	396.11M
Cash, Cash Equivalents and Short-Term Investments	525.93M	399.90M	284.36M	349.78M	208.86M	170.74M
Total Debt	396.70M	290.64M	117.12M	135.20M	82.78M	5.93M
Total Liabilities	552.60M	472.54M	308.67M	234.81M	171.71M	70.37M
Stockholders Equity	552.66M	529.95M	444.76M	426.91M	374.21M	325.21M
Cash Flow
Free Cash Flow	-125.94M	-66.46M	-9.65M	95.77M	-46.09M	24.79M
Operating Cash Flow	-109.47M	5.00M	75.32M	114.45M	-32.94M	35.89M
Investing Cash Flow	195.11M	40.42M	30.76M	-247.78M	39.99M	-71.24M
Financing Cash Flow	47.97M	103.35M	-70.30M	48.67M	75.96M	82.72M

Kwung's Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1925, the sentiment is Negative. The current price of 1.09 is above the 20-day moving average (MA) of 1.06, above the 50-day MA of 1.08, and below the 200-day MA of 1.21, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1925.

Kwung's Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8512	77 Outperform	HK$270.96M	2.26	19.34%	―	-3.12%	1.92%
3828	77 Outperform	HK$706.97M	4.98	10.86%	9.90%	6.86%	18.44%
1925	74 Outperform	HK$441.50M	4.52	17.17%	8.18%	21.99%	11.36%
1962	64 Neutral	HK$298.84M	9.96	3.77%	10.67%	-6.67%	-29.55%
2177	63 Neutral	HK$444.60M	16.69	3.32%	18.25%	-9.26%	435.33%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2023	62 Neutral	HK$359.01M	6.40	10.92%	―	11.10%	-4.38%

Kwung's Holdings Limited Corporate Events

Kwung’s Aroma Holdings Faces Revenue Challenges Amid EU Anti-Dumping Duties

Kwung’s Aroma Holdings Limited reported a 6.7% increase in revenue for the first half of 2025, but experienced a significant drop in total comprehensive income and earnings per share by 55.7%. This decline is attributed to the European Commission’s imposition of a provisional anti-dumping duty of 70.9% on candle imports from China, which affects over 50% of the company’s sales in the European Union. The company is seeking legal advice on the matter, as this duty could significantly impact its revenue and profitability.

The most recent analyst rating on (HK:1925) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Kwung’s Holdings Limited stock, see the HK:1925 Stock Forecast page.

Kwung’s Aroma Faces EU Anti-Dumping Duty on Candle Imports

Kwung’s Aroma Holdings Limited announced that the European Commission has imposed a provisional anti-dumping duty of 70.9% on candle products imported from China, affecting the company’s subsidiaries. This duty could significantly impact the company’s revenue and profits, as more than half of its sales come from the European Union. The company is currently seeking legal advice and will provide further updates as necessary.

The most recent analyst rating on (HK:1925) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Kwung’s Holdings Limited stock, see the HK:1925 Stock Forecast page.

Kwung’s Aroma Holdings to Review Interim Financials and Dividend

Kwung’s Aroma Holdings Limited has announced a board meeting scheduled for August 29, 2025, to discuss and approve the unaudited financial results for the first half of the year ending June 30, 2025. The meeting will also consider the potential payment of a dividend, which could impact shareholder returns and reflect the company’s financial health.