China Oral Industry Group Holdings Limited (8406) AI Stock Analysis

China Oral Industry Group Holdings Limited

(HKEX:8406)

Select Model

Rating:44Neutral

Price Target:HKD 0.07▼(-2.94% Downside)

Action:reiterated

Date:09/07/26

The overall score is low primarily because the company’s fundamentals show deep and worsening losses, negative margins, and significant cash burn despite a relatively modestly levered balance sheet. Technical indicators offer some support via mild positive momentum and low volatility, but these are not strong enough to offset the underlying financial weakness. Valuation remains unappealing given the negative P/E and lack of dividend, limiting the investment case to a high‑risk turnaround scenario.

Positive Factors

Recent Revenue GrowthTop-line growth indicates the company is still generating some demand and expanding revenue despite weak profitability. If management can convert this growth into positive gross margins and operating cash flow, it could provide a foundation for improving earnings over the next several quarters.

Negative Factors

Severe Profitability DeteriorationProfitability has weakened materially even as revenue grew, with gross profit turning slightly negative and net losses widening. This points to inadequate cost control or operating leverage, limiting the durability of revenue growth and making a sustained earnings recovery dependent on substantial margin improvement.

China Oral Industry Group Holdings Limited (8406) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 97.13M
Dividend Yield: ―
Average Volume (3M): 1.34M
Price to Earnings (P/E): -1.3
Beta (1Y): 0.38
Revenue Growth: -36.15%
EPS Growth: -246.97%
Country: Hong Kong
Employees: 418
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Leisure

China Oral Industry Group Holdings Limited Business Overview & Revenue Model

Company Description

China Oral Industry Group Holdings Limited operates as an investment holding company, primarily engaged in the design, manufacture, and worldwide distribution of inflatable products and their accompanying accessories. Its diverse product range includ...

China Oral Industry Group Holdings Limited Financial Statement Overview

Summary

Financial performance is very weak: revenues are volatile, profitability is consistently negative with the largest loss in the latest TTM, margins have deteriorated to slightly negative gross profit, and operating and free cash flows have turned sharply negative, indicating substantial and rising cash burn. The low leverage and positive equity provide some balance-sheet cushion but do not offset the ongoing value destruction.

Income Statement

18Very Negative

Balance Sheet

43Neutral

Cash Flow

22Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	168.73M	167.65M	230.96M	166.92M	212.52M	294.92M
Gross Profit	-277.30K	14.13M	37.25M	27.04M	17.57M	59.86M
EBITDA	-52.62M	-26.32M	-9.62M	-12.55M	-27.38M	13.14M
Net Income	-63.11M	-42.72M	-16.44M	-18.63M	-34.85M	-2.13M
Balance Sheet
Total Assets	164.45M	166.31M	202.46M	183.78M	190.85M	202.91M
Cash, Cash Equivalents and Short-Term Investments	16.55M	39.95M	67.05M	76.32M	60.28M	25.59M
Total Debt	25.39M	17.58M	4.68M	14.57M	15.79M	19.99M
Total Liabilities	64.09M	69.56M	95.32M	79.11M	67.70M	84.20M
Stockholders Equity	100.36M	96.75M	107.14M	104.67M	123.15M	118.71M
Cash Flow
Free Cash Flow	-82.43M	-51.05M	-5.77M	29.35M	14.90M	-21.03M
Operating Cash Flow	-76.68M	-47.26M	-5.72M	31.32M	28.15M	-19.15M
Investing Cash Flow	-11.17M	4.32M	8.79M	1.08M	-56.86M	-842.00K
Financing Cash Flow	-5.29M	23.57M	868.00K	-6.00M	31.63M	-5.45M

China Oral Industry Group Holdings Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price0.07

Price Trends

50DMA0.08Negative

100DMA0.08Negative

200DMA0.07Positive

Market Momentum

MACD-0.00Positive

RSI37.73Neutral

STOCH39.21Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8406, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of -0.00 indicates Positive momentum. The RSI at 37.73 is Neutral, neither overbought nor oversold. The STOCH value of 39.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8406.

China Oral Industry Group Holdings Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:8406 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:1086	70Outperform	HKD 2.32B	6.08	6.09%	18.05%	0.34%	40.53%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HK:0635	55Neutral	HKD 1.02B	-4.13	-5.52%	9.09%	-18.78%	42.15%
HK:3830	47Neutral	HKD 175.00M	-28.23	-36.67%	―	1.90%	11.43%
HK:8406	44Neutral	HKD 139.37M	-1.33	-64.04%	―	-36.15%	-246.97%
HK:0180	40Underperform	HKD 215.78M	-0.91	-14.23%	―	4.04%	-16.43%
HK:1348	37Underperform	HKD 188.70M	-7.53	-123.07%	―	―	―

* Consumer Cyclical Sector Average

Performance Comparison

HK:8406 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:8406	China Oral Industry Group Holdings Limited	0.07	-0.04	-35.24%
HK:1086	Goodbaby International Holdings	1.39	0.47	52.20%
HK:0635	Playmates Holdings	0.49	0.01	2.06%
HK:0180	Kader Holdings Co. Ltd.	0.23	0.02	8.10%
HK:1348	Quali-Smart Holdings Ltd.	0.13	-0.00	-1.54%
HK:3830	Kiddieland International Ltd.	0.17	0.12	212.50%

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 07, 2026

China Oral Industry Group Holdings Limited AI Stock Analysis