Herald Holdings Limited (0114) AI Stock Analysis

• Market Cap: HK$380.83M
• Dividend Yield: 8.96%
• Average Volume (3M): 81.67K
• Price to Earnings (P/E): 7.6
• Beta (1Y): -0.04
• Revenue Growth: 5.72%
• EPS Growth: 986.84%
• Country: HK
• Employees: 2,282
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.07
• Shares Outstanding: 604,490,700
• 10 Day Avg. Volume: 30,500
• 30 Day Avg. Volume: 81,668
• PEG Ratio: -0.03
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 4.16
• 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: 66 Neutral
• Price Target: HK$0.50 ▼(-16.67% Downside)

Herald Holdings Limited's overall stock score is driven by its strong financial performance and attractive valuation. The company's robust balance sheet and high dividend yield are significant strengths. However, technical indicators suggest caution due to overbought conditions, which could lead to short-term volatility.

Positive Factors

Balance Sheet Health

A strong balance sheet with minimal leverage indicates financial stability and low risk, providing the company with flexibility to invest in growth opportunities.

Profit Margin Improvement

Improved profit margins reflect better cost management and operational efficiency, which can enhance long-term profitability and competitiveness.

Revenue Diversification

Diversified revenue streams reduce dependency on a single market, providing resilience against sector-specific downturns and supporting stable growth.

Negative Factors

Cash Flow Concerns

Declining cash flow growth can strain the company's ability to fund operations and investments, potentially impacting long-term financial health.

Low Revenue Growth

Minimal revenue growth suggests challenges in expanding market share or product adoption, which could hinder long-term competitive positioning.

Operational Efficiency

Low operational margins indicate potential inefficiencies, limiting profitability improvements and competitive edge in the long term.

Herald Holdings Limited Business Overview & Revenue Model

Company Description

Herald Holdings Limited, together with its subsidiaries, engages in the manufacture, sale, and distribution of toys, computer products, housewares, clocks, watches, and electronic and gift products. It offers a range of toys, including action figures, electronic radio-controlled toy cars and boats, electronic games, and pre-school toys; battery-operated and electronic toys, games, radio-controlled vehicles, transformers, and model kits and gift items. The company provides computer products, including magnetic tape head, thin-film tape heads, and motor actuator assemblies, as well as smart connected devices for Internet of Things comprising smart watches, thermostats, sensory array gateways, and remote environmental sensors; and manufactures and sells watches under the Braun, Vivienne Westwood, and Lambretta brands. In addition, it is involved in the property investment and leasing activities; provision of marketing services; and debt and equity securities, and managed funds investment activities, as well as sells and distributes clocks, watches, and electronic products. Herald Holdings Limited operates in Hong Kong, North America, the United Kingdom, rest of Europe, Asia, Mainland China, and internationally. The company was incorporated in 1992 and is headquartered in Hong Kong, Hong Kong.

How the Company Makes Money

Herald Holdings Limited generates revenue through multiple key streams, including the sale of consumer products, which encompasses electronics and household items. The company benefits from its established supply chain and distribution networks to reach a broad customer base. Additionally, revenue is supplemented by retail operations, where it sells products directly to consumers. Real estate investments also contribute to earnings, particularly in terms of rental income and capital appreciation. Strategic partnerships with manufacturers and suppliers enhance product offerings and market reach, further solidifying the company’s financial performance.

Herald Holdings Limited Financial Statement Overview

Summary

Herald Holdings Limited shows a strong recovery in financial performance with improved profitability and a robust balance sheet. The income statement indicates better cost management and positive margins, while the balance sheet reflects low leverage and financial stability. However, cash flow management needs improvement due to declining free cash flow growth.

Income Statement

Herald Holdings Limited has shown a strong recovery in its income statement metrics. The gross profit margin improved significantly from 22.53% in 2024 to 29.06% in 2025, indicating better cost management. The net profit margin also turned positive, reaching 4.67% in 2025 from a negative margin in 2024. Revenue growth was slightly positive at 1.2% in 2025, showing stabilization after a decline in 2024. However, the EBIT and EBITDA margins, while positive, remain relatively low at 4.40% and 7.84% respectively, suggesting room for improvement in operational efficiency.

Balance Sheet

The balance sheet of Herald Holdings Limited is strong, with a very low debt-to-equity ratio of 0.0066 in 2025, indicating minimal leverage and financial risk. The return on equity improved to 5.70% in 2025, reflecting better profitability. The equity ratio is robust, suggesting a solid capital structure. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

Cash flow metrics show mixed results. The free cash flow to net income ratio is high at 95.61%, indicating efficient cash generation relative to net income. However, the free cash flow growth rate was negative at -10.78% in 2025, signaling a decline in cash generation. The operating cash flow to net income ratio is moderate at 35.85%, suggesting that cash flow from operations is adequate but could be improved.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	703.70M	703.70M	711.34M	1.26B	1.18B	927.77M
Gross Profit	204.51M	204.51M	160.28M	299.77M	119.99M	194.06M
EBITDA	30.70M	55.16M	17.41M	146.74M	-33.71M	33.11M
Net Income	32.88M	32.88M	-14.38M	82.33M	-61.15M	20.56M
Balance Sheet
Total Assets	826.82M	826.82M	812.45M	903.50M	972.46M	948.35M
Cash, Cash Equivalents and Short-Term Investments	358.16M	358.16M	306.58M	250.76M	175.20M	260.48M
Total Debt	3.79M	3.79M	11.76M	29.35M	66.29M	11.05M
Total Liabilities	236.78M	236.78M	219.46M	247.80M	341.62M	229.76M
Stockholders Equity	577.03M	577.03M	580.37M	642.41M	617.07M	706.82M
Cash Flow
Free Cash Flow	72.56M	71.29M	111.02M	146.22M	-93.67M	11.96M
Operating Cash Flow	75.83M	74.56M	112.54M	150.24M	-77.51M	23.42M
Investing Cash Flow	-2.08M	2.64M	1.52M	22.52M	-10.75M	-7.61M
Financing Cash Flow	-40.38M	-40.38M	-53.59M	-89.16M	8.96M	-45.06M

Herald Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0114, the sentiment is Positive. The current price of 0.6 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.62, and above the 200-day MA of 0.53, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.22 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0114.

Herald Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0114	66 Neutral	HK$380.83M	7.63	8.24%	8.96%	5.72%	986.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0869	59 Neutral	HK$477.90M	32.93	1.28%	13.73%	-44.36%	-93.64%
3830	53 Neutral	HK$106.00M	-17.70	-32.53%	―	-6.48%	-38.10%
1005	50 Neutral	HK$279.80M	-1.23	-37.46%	4.17%	-13.08%	-21.27%
0180	43 Neutral	HK$206.28M	-1.01	-10.53%	―	-7.61%	-37.66%
6918	42 Neutral	HK$123.66M	-1.65	-19.89%	―	84.26%	44.41%

Herald Holdings Limited Corporate Events

Herald Holdings Reports Increased Revenue and Profit for 2025 Interim Period

Herald Holdings Limited announced its unaudited consolidated results for the six months ending 30 September 2025, reporting a revenue increase to HK$425,046,000 from HK$392,170,000 in the same period of 2024. The company’s profit for the period rose to HK$44,258,000, up from HK$27,782,000, reflecting improved operational efficiency and increased profitability, which may positively impact its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:0114) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Herald Holdings Limited stock, see the HK:0114 Stock Forecast page.

Herald Holdings Limited Announces Interim Dividend

Herald Holdings Limited has announced an interim dividend of HKD 0.03 per share for the six months ending 30 September 2025. The dividend will be paid on 15 January 2026, with the ex-dividend date set for 30 December 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, potentially enhancing investor confidence and maintaining its competitive position in the market.

The most recent analyst rating on (HK:0114) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Herald Holdings Limited stock, see the HK:0114 Stock Forecast page.

Herald Holdings Projects Significant Profit Increase Amidst Industry Challenges

Herald Holdings Limited has announced a positive profit alert, expecting a significant increase in net profit attributable to equity shareholders for the six months ending September 30, 2025, ranging from HK$42 million to HK$47 million, compared to HK$27.2 million in the same period last year. This increase is primarily due to net realized and unrealized gains on trading securities and a one-off gain from the disposal of land in Shanghai. Despite these favorable results, the company expresses concerns about the second half of the fiscal year due to geopolitical tensions and intensified industry competition.

The most recent analyst rating on (HK:0114) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Herald Holdings Limited stock, see the HK:0114 Stock Forecast page.

Herald Holdings to Review Interim Results and Dividend

Herald Holdings Limited has announced that its Board of Directors will hold a meeting on November 27, 2025, to discuss and approve the unaudited interim results for the six months ending September 30, 2025. The meeting will also consider the payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

The most recent analyst rating on (HK:0114) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Herald Holdings Limited stock, see the HK:0114 Stock Forecast page.