Hong Kong Ferry Holdings Co. Ltd. (0050) AI Stock Analysis

• Market Cap: HK$1.75B
• Dividend Yield: 5.22%
• Average Volume (3M): 99.44K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.19
• Revenue Growth: -0.67%
• EPS Growth: 3.24%
• Country: HK
• Employees: 295
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): 0.34
• Shares Outstanding: 356,273,900
• 10 Day Avg. Volume: 110,130
• 30 Day Avg. Volume: 99,439
• PEG Ratio: -0.70
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 3.61
• P/FCF Ratio: -1.44K
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: HK$5.00 ▲(3.73% Upside)

The overall stock score is driven by strong valuation metrics, indicating the stock is undervalued with a high dividend yield. Financial performance is solid but hampered by cash flow challenges. Technical analysis shows bearish momentum, which is a concern, but the valuation remains a significant positive factor.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Diversified Revenue Streams

Diversification into property development alongside core ferry operations reduces dependency on a single revenue source, supporting long-term stability.

High Profit Margins

Strong profit margins indicate efficient cost management and profitability, which can sustain competitive advantage and shareholder returns over time.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth can hinder the company's ability to finance operations and investments, potentially impacting long-term growth.

Decline in EBIT and EBITDA Margins

Decreasing EBIT and EBITDA margins suggest operational challenges that could affect profitability and efficiency if not addressed.

Revenue Growth Concerns

While there is some growth, the overall negative revenue trend may indicate challenges in market expansion or competitive pressures, affecting future prospects.

Hong Kong Ferry Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

Hong Kong Ferry (Holdings) Company Limited, an investment holding company, primarily engages in the property development and investment business in Hong Kong. The company operates in four segments: Property Development; Property Investment; Ferry, Shipyard and Related Operations; and Securities Investment. It develops and sells residential units, commercial arcades, and car parking spaces; invests in and leases real estate properties; and offers property management services. The company also provides dangerous goods vehicular ferry, and ship repair and maintenance services, as well as sells goods on cruise vessels. In addition, it invests in debt and equity securities; provides property finance; and engages in the trading and floating restaurant business. The company was formerly known as The Hongkong and Yaumati Ferry Company Limited and changed its name to Hong Kong Ferry (Holdings) Company Limited in 1989. Hong Kong Ferry (Holdings) Company Limited was incorporated in 1923 and is headquartered in Tsing Yi, Hong Kong.

How the Company Makes Money

Hong Kong Ferry Holdings generates revenue primarily through its ferry operations, which include passenger fares and vehicle transport fees collected from commuters traveling between Hong Kong Island and Kowloon, as well as other nearby islands. The company also earns income from its property development and management activities, leveraging its real estate assets for rental income and capital appreciation. Additionally, partnerships with local authorities and tourism agencies can enhance passenger traffic, contributing to higher revenues. The diversification of services and strategic investments in property development provide a stable financial foundation and multiple revenue streams for the company.

Hong Kong Ferry Holdings Co. Ltd. Financial Statement Overview

Summary

Hong Kong Ferry Holdings Co. Ltd. demonstrates strong revenue growth and profitability, supported by a solid balance sheet with minimal leverage. However, cash flow challenges, particularly in free cash flow generation, pose potential risks. The company should focus on improving operational efficiency and cash conversion to enhance financial stability.

Income Statement

The company shows a consistent revenue growth trend with a 2.13% increase in the latest year. Gross profit margin and net profit margin are strong at 38.80% and 38.75%, respectively, indicating efficient cost management and profitability. However, there is a notable decline in EBIT and EBITDA margins compared to previous years, suggesting potential operational challenges.

Balance Sheet

The balance sheet is robust with a very low debt-to-equity ratio of 0.11%, indicating minimal leverage and financial risk. The return on equity is modest at 2.32%, reflecting stable but not exceptional returns on shareholder investments. The equity ratio is strong, showcasing a solid capital structure.

Cash Flow

The cash flow statement reveals challenges with a significant decline in free cash flow growth, down by 98.34%. The operating cash flow to net income ratio is below 1, indicating potential issues in converting income into cash. However, the company maintains a positive operating cash flow, which is a positive aspect.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	411.32M	422.91M	374.61M	280.63M	244.20M	208.27M
Gross Profit	162.50M	164.11M	140.49M	100.86M	79.58M	59.22M
EBITDA	110.74M	153.00M	192.56M	190.85M	177.75M	62.30M
Net Income	196.14M	163.88M	190.39M	1.30B	118.25M	26.59M
Balance Sheet
Total Assets	7.64B	7.37B	7.29B	7.53B	6.27B	6.22B
Cash, Cash Equivalents and Short-Term Investments	2.08B	1.88B	1.83B	1.97B	1.68B	731.10M
Total Debt	25.74M	8.02M	9.76M	18.32M	4.17M	5.56M
Total Liabilities	505.03M	319.76M	324.63M	316.36M	264.71M	246.92M
Stockholders Equity	7.14B	7.06B	6.97B	7.22B	6.00B	5.97B
Cash Flow
Free Cash Flow	66.95M	-1.06M	20.54M	384.61M	35.25M	45.98M
Operating Cash Flow	75.37M	5.03M	24.63M	408.95M	42.97M	52.70M
Investing Cash Flow	1.31B	486.94M	373.07M	-1.25B	726.39M	-145.33M
Financing Cash Flow	-97.83M	-97.62M	-447.56M	-93.72M	-91.28M	-137.60M

Hong Kong Ferry Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0050, the sentiment is Positive. The current price of 4.82 is below the 20-day moving average (MA) of 4.85, below the 50-day MA of 4.83, and above the 200-day MA of 4.64, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 65.46 is Neutral, neither overbought nor oversold. The STOCH value of 86.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0050.

Hong Kong Ferry Holdings Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0050	69 Neutral	HK$1.75B	8.94	2.77%	5.22%	-0.67%	3.24%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0251	50 Neutral	HK$812.87M	-3.63	-5.69%	3.85%	-1.26%	54.17%