TipRanks
Go Ultimate55% OFF

Herbs Generation Group Holdings Limited Class H (2593) AI Stock Analysis

HK:2593

Herbs Generation Group Holdings Limited Class H

(HKEX:2593)

Select Model
Rating:50Neutral
Price Target:HKD 1.00â–¼(-1.96% Downside)
Action:reiterated
Date:08/19/26

The score is held down primarily by the 2025 financial reversal (loss-making results and sharply weaker cash generation), despite a relatively resilient balance sheet. Technicals are broadly neutral with price near short-term averages but below longer-term moving averages. Valuation support comes mainly from the high dividend yield, tempered by loss-making performance and negative free cash flow.

Positive Factors
Low LeverageManageable leverage and a sizable equity base provide resilience while the company addresses weaker profitability. Lower debt exposure can reduce financing pressure, preserve borrowing capacity, and give management greater flexibility to fund operations or respond to business volatility.
Negative Factors
Revenue and Profit ReversalThe simultaneous revenue decline and swing into a sizable loss represent a material deterioration in operating performance. This weakens earnings visibility, reduces internally generated funding, and raises the risk that restoring prior profitability will require sustained improvement rather than a quick rebound.

Herbs Generation Group Holdings Limited Class H (2593) vs. iShares MSCI Hong Kong ETF (EWH)

-30%-20%-10%0%10%20%HK:2593-14.29%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 136.00M
Dividend Yield
14.71%
Average Volume (3M)
87.39K
Price to Earnings (P/E)
-4.6
Beta (1Y)
0.25
Revenue Growth
-9.95%
EPS Growth
-834.42%
Country
Hong Kong
Employees
239
Sector
General
Sector Strength
55
Industry
Household & Personal Products

Herbs Generation Group Holdings Limited Class H Business Overview & Revenue Model

Company Description

Herbs Generation Group Holdings Ltd. specializes in the formulation, distribution, and promotion of health supplements, cosmetic items, and skincare solutions. Its extensive portfolio encompasses brands like Herbs, ZINO, Classic, Umeya, Energie, Rega...

Herbs Generation Group Holdings Limited Class H Financial Statement Overview

Summary

Financial performance is weak due to a sharp 2025 deterioration: revenue fell ~7%, margins compressed, and the company swung from a ~5.3% net margin (2024) to a ~-10.1% loss. Cash flow also collapsed with near-breakeven operating cash flow and negative free cash flow (~-3.2M) versus strong positive FCF in 2021–2024. The balance sheet is a relative strength (low debt-to-equity ~0.15), but it does not offset the earnings and cash-generation reversal.

Income Statement

42Neutral

Balance Sheet

73Positive

Cash Flow

28Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue330.88M227.87M245.49M251.22M208.03M188.64M
Gross Profit205.51M134.87M161.06M170.35M149.59M135.80M
EBITDA-3.92M-6.79M40.81M63.35M45.89M36.49M
Net Income-28.78M-23.01M12.96M39.50M27.97M23.18M
Balance Sheet
Total Assets179.26M194.13M242.00M141.05M124.11M114.07M
Cash, Cash Equivalents and Short-Term Investments69.12M78.22M119.22M22.48M12.93M4.20M
Total Debt21.41M22.23M32.22M28.98M28.24M33.82M
Total Liabilities38.80M49.96M54.82M50.42M54.02M62.46M
Stockholders Equity140.46M144.17M187.18M90.63M70.09M51.62M
Cash Flow
Free Cash Flow-2.25M-3.16M31.96M32.67M30.52M20.72M
Operating Cash Flow826.00K154.00K37.43M37.38M32.72M24.90M
Investing Cash Flow-2.52M-3.32M-5.13M-4.51M2.74M-3.44M
Financing Cash Flow-9.84M-37.83M64.43M-23.32M-26.02M-21.43M

Herbs Generation Group Holdings Limited Class H Technical Analysis

Technical Analysis SentimentPositive
Last Price1.02

Price Trends

50DMA0.99Positive
100DMA0.98Positive
200DMA1.03Negative

Market Momentum

MACD0.00Positive
RSI50.20Neutral
STOCH44.76Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2593, the sentiment is Positive. The current price of 1.02 is below the 20-day moving average (MA) of 1.04, above the 50-day MA of 0.99, and below the 200-day MA of 1.03, indicating a neutral trend. The MACD of 0.00 indicates Positive momentum. The RSI at 50.20 is Neutral, neither overbought nor oversold. The STOCH value of 44.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2593.

Herbs Generation Group Holdings Limited Class H Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

HK:2593 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:2145HK:214571OutperformHKD 9.03B11.1825.77%6.20%23.19%-22.44%
HK:1044HK:104468NeutralHKD 24.47B8.4610.98%7.60%2.19%10.78%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
HK:2593HK:259350NeutralHKD 136.00M-4.64-20.22%14.71%-9.95%-834.42%
HK:0157HK:015746NeutralHKD 880.92M-15.33-12.81%―13.43%7.72%
HK:6993HK:699333UnderperformHKD 13.52B-148.17-1.21%6.58%-2.44%81.73%

* General Sector Average

Performance Comparison

-75%-50%-25%0%25%HK:2593HK:1044HK:0157HK:2145HK:6993HK:1318Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:2593 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:2593Herbs Generation Group Holdings Limited Class H1.02-0.17-14.29%
HK:1044Hengan International Group Co 21.08-4.88-18.80%
HK:0157Natural Beauty Bio-Technology 0.44-0.10-18.52%
HK:2145Shanghai Chicmax Cosmetics Co., Ltd. Class H22.66-60.79-72.85%
HK:6993Blue Moon Group Holdings Ltd.2.43-0.36-13.03%
HK:1318Mao Geping Cosmetics Co., Ltd. Class H49.14-34.01-40.90%

Herbs Generation Group Holdings Limited Class H Corporate Events

Herbs Generation Group Revamps Company Secretary and Representative Roles

Oct 7, 2026

Herbs Generation Group Holdings Limited announced a change in key corporate roles, with the resignation of company secretary and authorised representative Ms. Tsang Hing Suen, effective 7 October 2026. The board noted that she has no disagreement wit...

Herbs Generation Narrows Interim Loss Despite Revenue Decline

Aug 25, 2026

Herbs Generation Group Holdings Limited, incorporated in the Cayman Islands and listed in Hong Kong, operates in the herbal and health products sector. The group focuses on selling herbal-based consumer products, generating high-margin revenues prima...

Herbs Generation Schedules Board Meeting on 2026 Interim Results and Dividend

Aug 13, 2026

Herbs Generation Group Holdings Limited has scheduled a board meeting for 25 August 2026 to review and approve the unaudited interim results for the six months ended 30 June 2026. The board will also consider whether to recommend the payment of an in...

Herbs Generation flags sharply narrower loss on reduced marketing spend

Aug 12, 2026

Herbs Generation Group Holdings Limited has issued a profit alert indicating a significant reduction in net loss for the six months ended 30 June 2026, with expected losses narrowing to HK$3.5 million to HK$4.5 million from HK$7.5 million a year earl...

Herbs Generation Details Board and Committee Structure

Aug 2, 2026

Herbs Generation Group Holdings Limited has outlined its current Board composition, confirming a mix of executive, non-executive and independent non-executive directors. The company reinforces a governance structure aligned with Hong Kong listing pra...

Herbs Generation Executive Director Resigns to Focus on Subsidiary Operations

Jul 31, 2026

Herbs Generation Group Holdings Limited has announced the resignation of executive director Ms. Young Yuen Pik, effective 1 August 2026. She is stepping down from the board to concentrate on managing and operating the group’s business at the su...

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 19, 2026