Fairwood Holdings (0052) AI Stock Analysis

• Market Cap: HK$643.88M
• Dividend Yield: 4.45%
• Average Volume (3M): 37.06K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.30
• Revenue Growth: -2.18%
• EPS Growth: 11.28%
• Country: HK
• Employees: 5,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.10
• Shares Outstanding: 129,552,780
• 10 Day Avg. Volume: 47,250
• 30 Day Avg. Volume: 37,064
• PEG Ratio: 1.82
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 1.99
• 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: 55 Neutral
• Price Target: HK$5.50 ▲(11.34% Upside)

Fairwood Holdings' strong cash flow generation and attractive dividend yield are positive factors. However, challenges with declining revenue and high leverage weigh on the overall score. Technical indicators suggest neutral momentum, supporting a moderate outlook.

Positive Factors

Cash Flow Generation

Fairwood Holdings' ability to generate strong operating cash flow relative to net income ensures it can meet obligations and invest in growth.

Brand Presence

A strong brand presence in its core market provides Fairwood Holdings with a competitive advantage, aiding customer retention and market share expansion.

Operational Efficiency

Maintaining a stable EBITDA margin despite revenue challenges suggests operational efficiency, crucial for long-term profitability.

Negative Factors

Revenue Decline

Declining revenue indicates difficulties in market expansion or customer retention, potentially impacting future growth and profitability.

High Leverage

High leverage can limit financial flexibility and increase risk, especially if revenue and profitability pressures persist.

Profitability Margins

Decreasing profitability margins suggest rising costs or pricing pressures, which could erode long-term financial health.

Fairwood Holdings Business Overview & Revenue Model

Company Description

Fairwood Holdings Limited, an investment holding company, engages in the operation of fast-food restaurants. The company operates through two segments, Hong Kong Restaurants and Mainland China Restaurants. As of March 31, 2022, it operated 157 stores in Hong Kong, which included 145 fast food restaurants and 12 specialty restaurants under the ASAP, Taiwan Bowl, The Leaf Kitchen, and Kenting Tea House names; and 20 stores in Mainland China. The company is also involved in the property investment and leasing; and trademark and restaurants license holding activities. Fairwood Holdings Limited was founded in 1972 and is headquartered in North Point, Hong Kong.

How the Company Makes Money

Fairwood Holdings generates revenue primarily through its restaurant operations, where it earns income from the sale of food and beverages at its Fairwood outlets. The company has developed a strong brand presence in the fast-food market, attracting a loyal customer base. Key revenue streams include dine-in sales, takeaway orders, and delivery services. Additionally, Fairwood Holdings may benefit from strategic partnerships with food suppliers and delivery platforms that enhance its distribution capabilities. The company's investment in property also provides a supplementary income source through rental income and potential capital appreciation of its real estate holdings.

Fairwood Holdings Financial Statement Overview

Summary

Fairwood Holdings is facing challenges with declining revenue and profitability margins. The balance sheet shows high leverage, but strong cash flow generation indicates financial stability.

Income Statement

Fairwood Holdings has faced challenges in maintaining revenue growth, with a recent decline of 1.03% in revenue. The gross profit margin and net profit margin have also decreased over the years, indicating pressure on profitability. However, the company has managed to maintain a stable EBITDA margin, which suggests some operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.45, indicating significant leverage. Return on equity has decreased, reflecting challenges in generating returns for shareholders. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Fairwood Holdings has experienced a decline in free cash flow growth, but the operating cash flow remains strong relative to net income. The free cash flow to net income ratio is healthy, indicating good cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2023	Dec 2022	Dec 2020
Income Statement
Total Revenue	3.13B	3.10B	3.02B	3.14B	2.88B	3.03B
Gross Profit	240.59M	237.21M	256.76M	270.59M	222.56M	277.37M
EBITDA	369.24M	595.29M	562.02M	598.94M	579.59M	644.24M
Net Income	29.86M	35.54M	44.88M	50.66M	42.64M	60.87M
Balance Sheet
Total Assets	2.25B	2.11B	2.30B	2.25B	2.34B	2.71B
Cash, Cash Equivalents and Short-Term Investments	595.79M	545.65M	646.76M	640.98M	557.10M	514.19M
Total Debt	977.05M	943.55M	1.13B	1.04B	1.19B	1.46B
Total Liabilities	1.61B	1.45B	1.62B	1.59B	1.62B	1.99B
Stockholders Equity	637.30M	652.03M	680.63M	660.40M	714.24M	720.81M
Cash Flow
Free Cash Flow	456.69M	415.27M	610.41M	530.54M	484.99M	516.10M
Operating Cash Flow	645.02M	586.45M	709.44M	650.11M	561.47M	644.12M
Investing Cash Flow	-231.28M	-275.90M	-156.78M	-160.84M	-50.89M	-116.55M
Financing Cash Flow	-547.20M	-510.24M	-520.71M	-537.27M	-569.73M	-535.40M

Fairwood Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0052, the sentiment is Negative. The current price of 4.94 is below the 20-day moving average (MA) of 5.02, below the 50-day MA of 5.13, and below the 200-day MA of 5.24, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 34.24 is Neutral, neither overbought nor oversold. The STOCH value of 34.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0052.

Fairwood Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6811	68 Neutral	HK$1.07B	11.74	10.47%	5.50%	4.16%	59.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0052	55 Neutral	HK$643.88M	18.12	5.42%	4.45%	-2.18%	11.28%
1978	51 Neutral	HK$312.00M	-50.65	-2.62%	24.47%	-5.71%	-144.00%
1314	50 Neutral	HK$249.53M	19.67	2.28%	21.47%	1.02%	-71.48%
0538	47 Neutral	HK$993.30M	83.49	0.38%	7.03%	0.26%	-73.09%

Fairwood Holdings Corporate Events

Fairwood Holdings Approves Share Options Grant to Vice Chairman

Fairwood Holdings Limited announced the results of a Special General Meeting held on September 5, 2025, where a resolution to grant 1,040,000 share options to Mr. Lo Fai Shing Francis was passed. The resolution received over 83% approval from independent shareholders, with Mr. Lo and his associates abstaining from the vote due to their significant shareholding. This decision reflects the company’s commitment to aligning management incentives with shareholder interests, potentially impacting its governance and operational strategies.

The most recent analyst rating on (HK:0052) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Fairwood Holdings stock, see the HK:0052 Stock Forecast page.

Fairwood Holdings Announces Successful AGM Resolutions

Fairwood Holdings Limited announced that all proposed resolutions at its Annual General Meeting held on September 5, 2025, were passed by shareholders. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and granting the board mandates to issue and buy back shares. This outcome reflects shareholder confidence and supports the company’s strategic initiatives, potentially impacting its market position and stakeholder interests positively.

The most recent analyst rating on (HK:0052) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Fairwood Holdings stock, see the HK:0052 Stock Forecast page.

Fairwood Holdings to Discuss Share Options Grant at Special General Meeting

Fairwood Holdings Limited has announced a Special General Meeting to be held on September 5, 2025, to discuss the approval of granting 1,040,000 share options to Mr. Lo Fai Shing Francis under the company’s share option scheme. This move is part of Fairwood’s strategic initiatives to align the interests of its executives with shareholders, potentially impacting the company’s governance and executive compensation structure.

Fairwood Holdings Announces Annual General Meeting and Key Resolutions

Fairwood Holdings Limited has announced its Annual General Meeting to be held on September 5, 2025, in Hong Kong. The meeting will cover several key agenda items, including the adoption of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. Additionally, a resolution will be discussed regarding the authorization of the company’s directors to allot and issue shares within specified limits, potentially impacting the company’s capital structure and shareholder value.