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Hong Kong Food Investment Holdings Limited (HK:0060)
:0060
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Hong Kong Food Investment Holdings Limited (0060) AI Stock Analysis

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HK

Hong Kong Food Investment Holdings Limited

(0060)

Rating:43Neutral
Price Target:
The overall stock score reflects significant financial challenges, with declining revenues and persistent net losses impacting profitability. Technical analysis indicates a bearish trend, with the stock trading below key moving averages and nearing oversold conditions. Valuation metrics, including a negative P/E ratio and lack of dividend yield, further highlight the company's struggles. These factors combined suggest caution for potential investors.

Hong Kong Food Investment Holdings Limited (0060) vs. iShares MSCI Hong Kong ETF (EWH)

Hong Kong Food Investment Holdings Limited Business Overview & Revenue Model

Company DescriptionHong Kong Food Investment Holdings Limited, an investment holding company, trades in frozen meats, seafood, and vegetables. It operates through three segments: Trading, Catering, and Others. The company offers poultry, pork, beef, marine products, and other frozen food products to supermarket chains, fast food chains, Chinese restaurants, western restaurants, hotels, airlines, catering distributors, and frozen meat retailers in the wet market. It is also involved in the operation of restaurants, marketing of meat products, and communication and advertising design activities. In addition, the company provides communication and advertising design; and manufactures and trades snack foods, confectionery, beverages, frozen food, noodles, and ham and ham-related products. The company was incorporated in 1991 and is based in Kowloon Bay, Hong Kong.
How the Company Makes MoneyHong Kong Food Investment Holdings Limited generates revenue through its strategic investments and operations in the food and beverage sector. The company earns income from the production and sale of food products, leveraging its network of subsidiaries and partnerships to distribute these products to a wide range of consumers and retail channels. Additionally, the company may engage in joint ventures and partnerships that provide additional revenue streams and expand its market reach. Its earnings are also influenced by investment returns from its diversified portfolio, which may include stakes in other businesses or financial instruments in the food industry.

Hong Kong Food Investment Holdings Limited Financial Statement Overview

Summary
Hong Kong Food Investment Holdings Limited faces significant challenges with declining revenue and persistent net losses, impacting profitability. While the company's balance sheet is robust with low leverage, cash flow issues point to liquidity constraints. Strategic improvements are necessary to enhance operational efficiency and cash flow generation.
Income Statement
45
Neutral
The income statement reveals a declining revenue trend with a decrease of 8.5% from the previous year. Despite the negative EBIT and EBITDA margins, indicating operational inefficiencies, the company improved its gross profit margin slightly. The net profit margin is negative, highlighting overall profitability challenges.
Balance Sheet
60
Neutral
The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. However, the return on equity is negative due to net losses, which is a concern for investor returns. The equity ratio is high, reflecting a solid financial structure.
Cash Flow
40
Negative
Cash flow analysis indicates deteriorating free cash flow, with a shift from positive to negative, suggesting liquidity challenges. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting earnings into cash flows. The free cash flow to net income ratio is also negative, underscoring cash generation issues.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue200.74M211.84M231.56M183.13M131.12M140.05M
Gross Profit37.66M45.32M50.65M25.44M16.01M13.98M
EBITDA-14.14M-10.93M6.16M-7.72M-4.88M-14.57M
Net Income-18.37M-19.35M1.05M-17.34M-4.16M-24.11M
Balance Sheet
Total Assets592.51M611.44M653.56M685.25M684.04M657.16M
Cash, Cash Equivalents and Short-Term Investments88.89M79.54M87.89M99.21M152.09M160.50M
Total Debt26.88M43.77M46.91M63.54M41.17M39.95M
Total Liabilities49.24M66.87M69.39M80.28M59.16M52.43M
Stockholders Equity536.82M537.84M576.63M598.72M620.20M601.68M
Cash Flow
Free Cash Flow-931.00K-13.38M708.00K-66.66M-10.30M-9.72M
Operating Cash Flow312.00K-13.29M18.89M-43.99M-5.21M3.49M
Investing Cash Flow13.99M12.44M-6.17M-16.73M-1.33M-1.31M
Financing Cash Flow-15.10M-5.96M-23.32M7.37M-2.84M-23.10M

Hong Kong Food Investment Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.46
Price Trends
50DMA
0.44
Positive
100DMA
0.44
Positive
200DMA
0.46
Positive
Market Momentum
MACD
<0.01
Negative
RSI
59.42
Neutral
STOCH
61.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0060, the sentiment is Positive. The current price of 0.46 is above the 20-day moving average (MA) of 0.44, above the 50-day MA of 0.44, and above the 200-day MA of 0.46, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.42 is Neutral, neither overbought nor oversold. The STOCH value of 61.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0060.

Hong Kong Food Investment Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$387.60M8.189.10%3.95%-4.97%111.21%
74
Outperform
HK$158.00M8.8811.39%25.32%-0.45%7.28%
66
Neutral
HK$585.61M29.49-1.12%12.75%1.30%-85.43%
66
Neutral
HK$130.14M124.441.07%3.44%-43.75%
65
Neutral
$26.91B15.45-4.18%3.18%1.01%1.53%
43
Neutral
HK$118.42M-3.55%-12.19%-18.39%
40
Underperform
HK$219.23M-22.75%-4.08%-12.24%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0060
Hong Kong Food Investment Holdings Limited
0.46
-0.09
-16.36%
HK:0677
Golden Resources Development International Limited
0.34
-0.06
-15.00%
HK:1587
Shineroad International Holdings Limited
0.60
0.21
53.85%
HK:1705
B & S International Holdings Ltd.
0.40
0.06
17.65%
HK:8413
Asia Grocery Distribution Limited
0.11
-0.03
-21.43%
HK:8491
Cool Link (Holdings) Ltd.
0.56
0.25
80.65%

Hong Kong Food Investment Holdings Limited Corporate Events

Hong Kong Food Investment and Four Seas Mercantile Forge New Supply Agreement
Mar 31, 2025

Hong Kong Food Investment Holdings Limited and Four Seas Mercantile Holdings Limited have entered into a 2025 Master Supply and Services Agreement effective from April 1, 2025, to March 31, 2028. This agreement facilitates the mutual supply of frozen meat and pre-packed food products, along with food processing services, between the two companies. The transactions are classified as connected transactions due to existing shareholding relationships, but they are exempt from independent shareholders’ approval under the Hong Kong Listing Rules, indicating a streamlined process for these business operations.

Hong Kong Food Investment Holdings Relocates Principal Office
Mar 26, 2025

Hong Kong Food Investment Holdings Limited has announced a change in its principal place of business in Hong Kong to a new location in Kowloon, effective from March 26, 2025. This move might impact the company’s operational logistics and stakeholder interactions, as it signifies a strategic relocation within the region.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 29, 2025