Fairwood Holdings (0052) AI Stock Analysis

• Market Cap: HK$567.44M
• 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

Sustained operating cash flow and a healthy free-cash-flow-to-net-income ratio indicate durable internal funding. Over 2-6 months this supports dividend payouts, routine capex and working-capital needs, reducing reliance on external financing and improving resilience to cyclical sales swings.

Operational efficiency

A stable EBITDA margin signals consistent underlying unit economics and cost control at restaurant level. This operational steadiness helps absorb ingredient and labor cost variability, preserves cash generation, and supports reinvestment in store upkeep and service quality over the medium term.

Established quick-service model

A focused quick-service restaurant network with local brand recognition and 5,600 employees provides scale advantages in procurement, operations and brand familiarity. The model produces repeat customer transactions and diversified in-store and off-premise sales that support stable cash flows over months.

Negative Factors

Revenue decline

Persisting top-line decline compresses the operating leverage of a restaurant chain. If sales volumes or average checks continue to fall, the company faces sustained pressure on margins and cash flow, limiting capacity to invest in growth, remodel stores, or defend market share.

High leverage

A debt-to-equity ratio near 1.45 indicates material financial leverage. Elevated debt raises interest and refinancing risk, reduces strategic flexibility for capex or marketing, and makes the business more vulnerable to revenue shocks or rising rates over the medium term.

Margin pressure

Declining gross and net margins point to cost pressures or unfavorable mix that erode profitability. Margin compression reduces retained earnings and cash available for dividends or reinvestment, and forces difficult trade-offs between price, promotions and cost cuts over subsequent quarters.

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: 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 above the 20-day moving average (MA) of 4.49, above the 50-day MA of 4.56, and below the 200-day MA of 5.00, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of 15.62 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$1.17B	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$567.44M	12.97	5.13%	4.58%	-2.18%	11.28%
1978	51 Neutral	HK$272.00M	-113.78	-2.62%	24.14%	-5.71%	-144.00%
1314	50 Neutral	HK$216.44M	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%