Fairwood Holdings (0052) AI Stock Analysis

• Market Cap: HK$716.43M
• Dividend Yield: 6.32%
• Average Volume (3M): 115.63K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.33
• Revenue Growth: -1.18%
• EPS Growth: -29.85%
• Country: HK
• Employees: 5,600
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Restaurants
• EPS (TTM): 0.15
• Shares Outstanding: 129,552,780
• 10 Day Avg. Volume: 70,550
• 30 Day Avg. Volume: 115,631
• PEG Ratio: -0.66
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 1.75
• 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

• Rating: 58 Neutral
• Price Target: HK$5.50 ▼(-0.72% Downside)

Fairwood Holdings' overall stock score is primarily influenced by its financial performance and technical analysis. The company faces challenges with declining revenue and high leverage, but strong cash flow generation is a positive factor. Technical indicators show moderate positive momentum, while the valuation suggests the stock may be overvalued but offers an attractive dividend yield.

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, which include dine-in, takeaway, and delivery services. The company earns money by selling food and beverages directly to customers at its various locations. Additionally, Fairwood Holdings benefits from economies of scale, allowing it to manage costs effectively while maintaining competitive pricing. The company may also engage in promotional activities, collaborations, and partnerships with suppliers that enhance its product offerings and drive customer traffic. Furthermore, Fairwood Holdings may explore expansion opportunities, such as franchising or new store openings, to diversify its revenue streams and increase market share.

Fairwood Holdings Financial Statement Overview

Summary

Fairwood Holdings presents a stable financial position with consistent revenue growth and strong cash flow generation. However, high leverage and moderate profitability margins suggest potential areas for improvement. The company is well-positioned in terms of operational efficiency but must manage its debt levels to reduce financial risk.

Income Statement

Fairwood Holdings has shown consistent revenue growth with a 3.71% increase from 2023 to 2024. The gross profit margin is 8.63%, and the net profit margin is 1.62%, indicating moderate profitability. The EBIT margin of 3.14% and EBITDA margin of 19.09% show stable operational efficiency, though there is room for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio is approximately 1.58, indicating a relatively high leverage, which could pose risks in economic downturns. However, the equity ratio of 29.38% suggests a balanced proportion of equity in the asset structure. Return on equity (ROE) is 7.67%, reflecting a modest return to shareholders.

Cash Flow

Fairwood Holdings has demonstrated strong cash flow management with a free cash flow growth rate of -13.08% from 2023 to 2024. The operating cash flow to net income ratio is 12.83, and the free cash flow to net income ratio is 10.47, highlighting robust cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.13B	3.10B	3.14B	3.02B	2.88B	2.65B
Gross Profit	240.59M	237.21M	270.59M	256.76M	222.56M	327.60M
EBITDA	369.24M	595.29M	598.94M	565.98M	554.33M	721.66M
Net Income	29.86M	35.54M	50.66M	44.88M	42.64M	153.62M
Balance Sheet
Total Assets	2.25B	2.11B	2.25B	2.30B	2.34B	2.45B
Cash, Cash Equivalents and Short-Term Investments	595.79M	545.65M	640.98M	646.76M	557.10M	638.89M
Total Debt	977.05M	943.55M	1.04B	1.13B	1.19B	1.22B
Total Liabilities	1.61B	1.45B	1.59B	1.62B	1.62B	1.67B
Stockholders Equity	637.30M	652.03M	660.40M	680.63M	714.24M	777.84M
Cash Flow
Free Cash Flow	456.69M	415.27M	530.54M	610.41M	484.99M	671.03M
Operating Cash Flow	645.02M	586.45M	650.11M	709.44M	561.47M	780.90M
Investing Cash Flow	-231.28M	-275.90M	-160.84M	-156.78M	-50.89M	-111.47M
Financing Cash Flow	-547.20M	-510.24M	-537.27M	-520.71M	-569.73M	-565.42M

Fairwood Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.54
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 5.54 is below the 20-day moving average (MA) of 5.55, above the 50-day MA of 5.36, and below the 200-day MA of 5.80, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 54.20 is Neutral, neither overbought nor oversold. The STOCH value of 22.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0052.

Fairwood Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2217	74 Outperform	HK$2.11B	26.39	5.40%	4.62%	1.63%	-47.80%
6811	64 Neutral	HK$903.42M	14.90	6.54%	5.78%	2.49%	-33.12%
Sector *	61 Neutral	$16.55B	10.17	-9.03%	3.33%	1.46%	-22.85%
0538	60 Neutral	HK$927.81M	19.75	-0.69%	7.27%	-7.18%	-110.84%
0052	58 Neutral	HK$716.43M	20.16	5.42%	6.32%	-1.18%	-29.85%
1978	54 Neutral	HK$292.00M	23.14	-12.09%	24.14%	-17.29%	-136.42%
1314	50 Neutral	HK$266.07M	20.98	2.54%	17.95%	-5.04%	-67.83%

Fairwood Holdings Corporate Events

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.

Fairwood Holdings Revamps Share Option Scheme to Boost Stakeholder Engagement

Fairwood Holdings Limited announced the cancellation of 3,330,000 outstanding share options due to their high exercise price, which deterred holders from exercising them. To motivate its employees and directors, the company has granted 5,500,000 new share options at a lower exercise price, aligning with current market conditions, and ensuring better engagement and incentive alignment with its stakeholders.

Fairwood Holdings Announces Board Composition and Committee Roles

Fairwood Holdings Limited, a company incorporated in Bermuda, has announced the composition of its Board of Directors and their respective roles and functions. The Board includes a mix of non-executive, executive, and independent non-executive directors, with Dennis Lo Hoi Yeung serving as the Chairman. The announcement details the membership of the Board’s three committees: Audit, Remuneration, and Nomination, highlighting the leadership roles within these committees. This update provides insights into the governance structure of Fairwood Holdings, which may influence its strategic direction and operational oversight.

Fairwood Holdings Enhances Board Governance with New Nomination Committee

Fairwood Holdings Limited has established a Nomination Committee to oversee the structure, size, and composition of its Board of Directors. The committee is tasked with identifying qualified individuals for board positions, assessing the independence of non-executive directors, and making recommendations on director appointments and succession planning. This initiative is aimed at enhancing the company’s governance and aligning its board composition with corporate strategy, potentially impacting its operational effectiveness and stakeholder confidence.

Fairwood Holdings Reports Decline in Annual Profit and Revenue

Fairwood Holdings Limited reported a decrease in profit attributable to equity shareholders, amounting to HK$35.5 million for the year ended 31 March 2025, down from HK$50.7 million the previous year. The company’s revenue also saw a slight decline of 1.2% to HK$3,100.1 million. Despite these decreases, Fairwood maintained a healthy financial position with substantial bank deposits and cash equivalents. The company proposed a final dividend of HK17.0 cents per share, resulting in a total dividend per share for the year of HK22.0 cents, with a payout ratio of approximately 80.2%. These results indicate a challenging year for Fairwood, with implications for its financial strategy and stakeholder returns.

Fairwood Holdings Declares Final Dividend for FY2025

Fairwood Holdings Limited, a company listed on the Hong Kong Stock Exchange, has announced a final ordinary cash dividend of HKD 0.17 per share for the financial year ending March 31, 2025. The dividend, pending shareholder approval on September 5, 2025, will be paid on October 2, 2025, with the record date set for September 16, 2025. This announcement reflects Fairwood Holdings’ commitment to returning value to its shareholders and may impact its market positioning by potentially enhancing investor confidence.

Fairwood Holdings to Review Annual Results and Dividend Proposal

Fairwood Holdings Limited has announced that its board of directors will hold a meeting on June 30, 2025, to consider and approve the company’s annual results for the fiscal year ending March 31, 2025. The meeting will also address the recommendation for the payment of a final dividend. This announcement is significant as it will provide insights into the company’s financial performance and potential returns for stakeholders.

Fairwood Holdings Issues Profit Warning Amid Market Challenges

Fairwood Holdings Limited has issued a profit warning, anticipating a potential decrease of up to 30% in profit for the year ending March 2025 compared to the previous year. This decline is attributed to increased outbound spending, economic challenges, and intensified price competition in Hong Kong and Mainland China. In response, Fairwood is implementing strategies to restore growth, including revenue optimization, brand revitalization, and operational efficiency improvements. The company is focusing on digital transformation and corporate responsibility to strengthen its market position and deliver sustainable value.