Fairwood Holdings (0052) AI Stock Analysis

• Market Cap: HK$562.26M
• Dividend Yield: 4.58%
• Average Volume (3M): 37.06K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.28
• 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$4.50 ▼(-4.26% Downside)
• Action: Reiterated Date: 09/20/25
• Date: Action: Reiterated 09/20/25

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 generation

Fairwood exhibits durable operating cash generation: OCF remains strong versus net income and free cash flow to net income is healthy. Consistent cash conversion supports dividend payments, funds reinvestment and working capital needs, providing financial resilience across 2–6 months.

Shareholder distributions

A sustained, attractive dividend yield indicates disciplined cash returns and a management preference for returning excess cash. Supported by the company’s cash flow profile, this policy can anchor investor expectations and reflect steady payout capacity over the medium term.

Established quick-service model

Fairwood’s core quick-service restaurant model and Hong Kong chain presence provide recurring, transaction-based revenue and scale benefits. Multiple channels (in-store, takeaway, delivery) diversify sales mix and help sustain customer traffic and unit-level economics over coming months.

Negative Factors

Declining revenue trend

A continuing revenue decline signals pressure on top-line momentum from competition, traffic or pricing limits. If sales contraction persists, it erodes margin levers and limits the company’s ability to invest in store upgrades or marketing, weighing on medium-term growth prospects.

High leverage

A debt-to-equity ratio around 1.45 indicates significant leverage for a consumer-facing operator. Elevated debt raises interest and refinancing risk, reduces financial flexibility for new openings or capex, and increases vulnerability to cost shocks like rent or wage inflation over the next several months.

Margin pressure

Declining gross and net margins point to intensifying cost pressures (ingredients, labor, rent) or promotional mix shifts. Sustained margin compression limits free cash flow expansion and weakens returns on capital, making it harder to absorb higher operating costs or fund growth initiatives.

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 makes money mainly by selling food and beverages to customers through its restaurant network under the Fairwood brand. Its core revenue stream is in-store dining transactions, where customers pay per item or set meal; revenue is recognized from the provision of prepared meals and drinks. A secondary revenue stream comes from off-premise consumption, including takeaway orders and delivery orders placed through delivery platforms and/or ordering channels where applicable; in these cases, Fairwood earns the menu price revenue while typically paying platform/service fees that reduce net proceeds. The company’s earnings are driven by restaurant-level sales volume (customer traffic), average spend per customer (menu mix, pricing, and promotions), and its ability to manage cost of food ingredients, labor, rent, and utilities. If applicable data on additional revenue lines (e.g., franchising, catering, packaged/retail food sales, or other business segments) is not available from the provided context, null.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2020	Mar 2019
Income Statement
Total Revenue	3.06B	3.10B	3.02B	2.88B	3.03B	2.97B
Gross Profit	243.81M	237.21M	256.76M	222.56M	277.37M	384.20M
EBITDA	595.14M	595.29M	562.02M	579.59M	644.24M	331.05M
Net Income	33.23M	35.54M	44.88M	42.64M	60.87M	179.95M
Balance Sheet
Total Assets	2.16B	2.11B	2.30B	2.34B	2.71B	1.28B
Cash, Cash Equivalents and Short-Term Investments	552.07M	545.65M	646.76M	557.10M	514.19M	531.80M
Total Debt	948.22M	943.55M	1.13B	1.19B	1.46B	143.00K
Total Liabilities	1.51B	1.45B	1.62B	1.62B	1.99B	498.13M
Stockholders Equity	644.39M	652.03M	680.63M	714.24M	720.81M	777.68M
Cash Flow
Free Cash Flow	448.55M	415.27M	610.41M	484.99M	516.10M	176.32M
Operating Cash Flow	593.88M	586.45M	709.44M	561.47M	644.12M	291.28M
Investing Cash Flow	-183.80M	-275.90M	-156.78M	-50.89M	-116.55M	-71.65M
Financing Cash Flow	-492.12M	-510.24M	-520.71M	-569.73M	-535.40M	-167.65M

Fairwood Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 4.7 is above the 20-day moving average (MA) of 4.46, above the 50-day MA of 4.53, and below the 200-day MA of 4.99, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 35.49 is Neutral, neither overbought nor oversold. The STOCH value of 32.49 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$1.15B	5.43	10.47%	5.56%	4.16%	59.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0052	55 Neutral	HK$562.26M	12.97	5.13%	4.58%	-2.18%	11.28%
1978	51 Neutral	HK$276.00M	-113.78	-2.65%	24.14%	-5.71%	-144.00%
1314	50 Neutral	HK$217.82M	12.23	2.32%	21.88%	1.02%	-71.48%
0538	47 Neutral	HK$1.00B	8.83	0.39%	7.11%	0.26%	-73.09%