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Honworld Group Ltd. (HK:2226)
:2226
Hong Kong Market
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Honworld Group Ltd. (2226) AI Stock Analysis

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HK:2226

Honworld Group Ltd.

(2226)

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Neutral 45 (OpenAI - Gpt-5.6Sol)
Rating:45Neutral
Price Target:
HK$0.67
▲(11.33% Upside)
Action:Reiterated
Date:08/29/26
The score is held down primarily by weak financial performance—large recurring losses, persistent cash burn, and a highly stressed balance sheet with negative equity and rising debt. Technicals provide some support due to a clear uptrend, but overbought signals temper the technical score. Valuation remains pressured because the company is loss-making (negative P/E) and no dividend yield is available.
Positive Factors
Stable Gross Margins
Maintaining gross margins in the mid-to-high 20% range indicates the company has retained some product-level economics despite weak overall profitability. This provides a foundation for any future improvement if operating costs, restructuring burdens, or other losses can be reduced.
Negative Factors
Negative Equity and Rising Debt
Deepening negative equity alongside materially higher debt signals a structurally weakened capital base and limited financial flexibility. The company has less capacity to absorb further losses or fund operations internally, while refinancing and solvency risks can remain material over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable Gross Margins
Maintaining gross margins in the mid-to-high 20% range indicates the company has retained some product-level economics despite weak overall profitability. This provides a foundation for any future improvement if operating costs, restructuring burdens, or other losses can be reduced.
Read all positive factors

Honworld Group Ltd. (2226) vs. iShares MSCI Hong Kong ETF (EWH)

Honworld Group Ltd. Business Overview & Revenue Model

Company Description
Honworld Group Limited operates as an investment holding entity, primarily involved in the production and distribution of cooking wine and various other seasoning products throughout the People's Republic of China. The company markets these items ...

Honworld Group Ltd. Financial Statement Overview

Summary
Despite relatively stable revenue and mid-to-high 20% gross margins, the company remains far from profitability with consistently negative EBIT/EBITDA and extremely large net losses versus sales. The balance sheet is highly stressed with deeply negative equity and rising debt, and cash flow shows persistent operating and free-cash-flow burn—together implying elevated solvency and refinancing risk.
Income Statement
18
Very Negative
Balance Sheet
10
Very Negative
Cash Flow
14
Very Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue271.70M275.08M258.78M271.60M252.67M
Gross Profit69.43M68.91M74.11M74.82M68.51M
EBITDA-14.76M-32.09M-74.66M-74.07M-153.91M
Net Income-513.94M-516.56M-524.32M-486.34M-318.45M
Balance Sheet
Total Assets1.02B1.05B1.11B1.12B1.19B
Cash, Cash Equivalents and Short-Term Investments22.90M6.35M10.12M9.81M31.02M
Total Debt3.79B3.31B2.81B2.21B1.76B
Total Liabilities4.37B3.90B3.45B2.93B2.51B
Stockholders Equity-3.37B-2.85B-2.33B-1.81B-1.32B
Cash Flow
Free Cash Flow-41.92M-20.97M-122.22M-243.70M-116.33M
Operating Cash Flow-29.59M-830.00K-102.22M-226.80M-97.81M
Investing Cash Flow4.87M-20.13M-22.46M-19.02M-12.42M
Financing Cash Flow39.49M18.62M126.05M228.54M131.75M

Honworld Group Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.60
Price Trends
50DMA
0.52
Positive
100DMA
0.58
Positive
200DMA
0.52
Positive
Market Momentum
MACD
0.05
Negative
RSI
64.75
Neutral
STOCH
69.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2226, the sentiment is Positive. The current price of 0.6 is above the 20-day moving average (MA) of 0.55, above the 50-day MA of 0.52, and above the 200-day MA of 0.52, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 64.75 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2226.

Honworld Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
HK$1.13B7.926.00%8.64%4.72%20.03%
68
Neutral
HK$666.08M3.7815.07%11.90%-0.15%266.09%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
58
Neutral
HK$645.28M14.871.54%6.67%4.12%
56
Neutral
HK$713.94M-8.41-3.49%18.10%5.96%-252.05%
52
Neutral
HK$746.46M-77.36-3.14%1777777.78%26.54%82.47%
45
Neutral
HK$376.19M-0.6514.43%2.55%-0.09%0.23%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2226
Honworld Group Ltd.
0.65
0.08
14.04%
HK:3999
Dachan Food (Asia) Limited
0.57
-0.05
-8.06%
HK:1262
Labixiaoxin Snacks Group Ltd.
3.12
1.14
57.58%
HK:1285
Jiashili Group Ltd
1.68
0.77
84.01%
HK:2317
Vedan International (Holdings) Ltd.
0.75
0.09
13.22%
HK:0829
Shenguan Holdings (Group) Limited
0.23
-0.07
-23.05%

Honworld Group Ltd. Corporate Events

Honworld Narrows Interim Loss Despite Revenue Dip and Ongoing Finance Strain
Aug 28, 2026
Honworld Group Limited reported interim results for the six months ended 30 June 2026 showing revenue down 4.4% year on year to RMB138.1 million, yet gross profit edged up 1.3% to RMB42.6 million as cost of sales declined. The company’s loss...
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: Aug 29, 2026