KWG Group Holdings Ltd. (1813) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Wing Tai Properties Ltd.

S-Enjoy Service Group Co., Ltd.

Why is KWG Group Holdings Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -19.53% and Operating profit at -30.14% over the last 5 years
The company is Net-Debt Free

Negative results in Dec 25

INTEREST(HY) At HKD 1,859.48 MM has Grown at 68.28%
PRE-TAX PROFIT(Q) At HKD -4,010.05 MM has Fallen at -332.49%
NET PROFIT(Q) At HKD -4,973.61 MM has Fallen at -530.11%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -55.16%, its profits have risen by 94.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -55.16% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is KWG Group Holdings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

KWG Group Holdings Ltd.

-100.0%

-0.80

78.41%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-19.53%

EBIT Growth (5y)

-30.14%

EBIT to Interest (avg)

-6.63

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

5.55%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.18%

ROCE (avg)

1.92%

ROE (avg)

4.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.21

EV to EBIT

50.11

EV to EBITDA

41.64

EV to Capital Employed

0.97

EV to Sales

7.64

PEG Ratio

Dividend Yield

ROCE (Latest)

1.94%

ROE (Latest)

-639.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 1,875.91 MM

RAW MATERIAL COST(Y)

Fallen by -178.89% (YoY

-17What is not working for the Company

INTEREST(HY)

At HKD 1,859.48 MM has Grown at 68.28%

PRE-TAX PROFIT(Q)

At HKD -4,010.05 MM has Fallen at -332.49%

NET PROFIT(Q)

At HKD -4,973.61 MM has Fallen at -530.11%

DEBT-EQUITY RATIO (HY)

Highest at 4,294.61 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.1 times

CASH AND EQV(HY)

Lowest at HKD 706.6 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.65 times

NET SALES(Q)

Lowest at HKD 3,250.96 MM

Here's what is working for KWG Group Holdings Ltd.

Operating Cash Flow

Highest at HKD 1,875.91 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Raw Material Cost

Fallen by -178.89% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for KWG Group Holdings Ltd.

Pre-Tax Profit

At HKD -4,010.05 MM has Fallen at -332.49%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (HKD MM)

Net Profit

At HKD -4,973.61 MM has Fallen at -530.11%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (HKD MM)

Interest

At HKD 1,859.48 MM has Grown at 68.28%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Debt-Equity Ratio

Highest at 4,294.61 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 0.1 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at HKD 3,250.96 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Net Sales

Fallen at -48.58%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Cash and Eqv

Lowest at HKD 706.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 0.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio