Fairwood Holdings (0052) AI Stock Analysis

• Market Cap: HK$598.53M
• Dividend Yield: 4.58%
• Average Volume (3M): 37.06K
• Price to Earnings (P/E): 18.0
• 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$5.00 ▲(6.38% 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 Generation

Fairwood's durable operating cash generation and healthy free cash flow-to-net-income ratio provide internal funding for recurring dividends, maintenance capex and debt service. Strong cash conversion supports financial stability and optionality across economic cycles over the next several quarters.

Diversified Revenue Streams

Beyond restaurant sales, property investment and rental income create a structural revenue cushion that reduces dependency on same-store sales. This diversification smooths cash flows, supports the balance sheet and offers long-term upside from real estate appreciation versus pure-play peers.

Operational Efficiency (EBITDA Stability)

A stable EBITDA margin despite top-line pressure indicates durable unit-level economics and persistent cost control across the restaurant network. This operational resilience helps preserve cash flow and profitability potential over medium-term horizons even if revenue growth is muted.

Negative Factors

Declining Revenue Trend

Recurring revenue declines and a negative revenue-growth trend reduce scale benefits and limit margin expansion. Persistent top-line weakness can erode competitive positioning in a low-margin foodservice industry and constrain reinvestment, dividends and debt reduction over months.

High Financial Leverage

Significant leverage increases interest costs and reduces financial flexibility, making Fairwood more sensitive to revenue volatility. High debt levels limit capacity for strategic investments or opportunistic acquisitions and raise refinancing and liquidity risks over a multi-quarter horizon.

Pressure on Profitability Margins

Ongoing gross and net margin compression signals cost pressure or constrained pricing power in the restaurant segment. Sustained margin deterioration undermines return on capital, limits capacity to absorb rising costs, and threatens dividend and reinvestment sustainability if not addressed.

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	3.10B	3.10B	3.02B	3.14B	2.88B	3.03B
Gross Profit	237.21M	237.21M	256.76M	270.59M	222.56M	277.37M
EBITDA	373.01M	595.29M	562.02M	598.94M	579.59M	644.24M
Net Income	35.54M	35.54M	44.88M	50.66M	42.64M	60.87M
Balance Sheet
Total Assets	2.11B	2.11B	2.30B	2.25B	2.34B	2.71B
Cash, Cash Equivalents and Short-Term Investments	545.65M	545.65M	646.76M	640.98M	557.10M	514.19M
Total Debt	943.55M	943.55M	1.13B	1.04B	1.19B	1.46B
Total Liabilities	1.45B	1.45B	1.62B	1.59B	1.62B	1.99B
Stockholders Equity	652.03M	652.03M	680.63M	660.40M	714.24M	720.81M
Cash Flow
Free Cash Flow	415.27M	415.27M	610.41M	530.54M	484.99M	516.10M
Operating Cash Flow	586.45M	586.45M	709.44M	650.11M	561.47M	644.12M
Investing Cash Flow	-275.90M	-275.90M	-156.78M	-160.84M	-50.89M	-116.55M
Financing Cash Flow	-510.24M	-510.24M	-520.71M	-537.27M	-569.73M	-535.40M

Fairwood Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 below the 20-day moving average (MA) of 4.75, below the 50-day MA of 4.89, and below the 200-day MA of 5.10, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 21.69 is Positive, neither overbought nor oversold. The STOCH value of 3.98 is Positive, 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%	5.56%	4.16%	59.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0052	55 Neutral	HK$598.53M	18.01	5.42%	4.58%	-2.18%	11.28%
1978	51 Neutral	HK$292.00M	-46.75	-2.62%	24.14%	-5.71%	-144.00%
1314	50 Neutral	HK$217.82M	19.51	2.28%	21.88%	1.02%	-71.48%
0538	47 Neutral	HK$993.30M	83.49	0.38%	7.11%	0.26%	-73.09%

Fairwood Holdings Corporate Events

Fairwood Holdings Announces Interim Dividend for 2025

Fairwood Holdings Limited, a company listed on the Hong Kong Stock Exchange, announced an interim cash dividend of HKD 0.05 per share for the six months ending September 30, 2025. The dividend will be paid on December 31, 2025, with the record date set for December 16, 2025. This announcement reflects Fairwood Holdings’ ongoing commitment to returning value to its shareholders, potentially enhancing its market position by maintaining investor confidence.

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 Reports Stable Financials Amid Revenue Dip

Fairwood Holdings Limited reported a slight decrease in revenue by 2.3% to HK$1,517.5 million for the six months ending September 2025, compared to the same period in 2024. Despite the decline in revenue, the company achieved a higher gross profit margin of 8.1% and maintained a strong financial position with significant cash reserves and a low gearing ratio. The Board declared an interim dividend of HK5.0 cents per share, reflecting a stable outlook despite the challenges.

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 Review Interim Results and Dividend Proposal

Fairwood Holdings Limited has scheduled a board meeting on November 27, 2025, to discuss and approve the interim results for the six months ending September 30, 2025. The meeting will also consider the recommendation for the payment of an interim dividend, highlighting the company’s ongoing financial strategies and potential shareholder returns.

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.