Herald Holdings Limited (0114) AI Stock Analysis

• Market Cap: HK$338.51M
• Dividend Yield: 10.91%
• Average Volume (3M): 192.82K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.03
• Revenue Growth: -19.10%
• EPS Growth: -90.12%
• Country: HK
• Employees: 2,282
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Leisure
• EPS (TTM): <0.01
• Shares Outstanding: 604,490,700
• 10 Day Avg. Volume: 249,700
• 30 Day Avg. Volume: 192,816
• PEG Ratio: 0.54
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.09
• 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: 48 Neutral
• Price Target: ―

Herald Holdings Limited faces challenges with declining revenue and profitability, offset by a strong balance sheet and effective cash flow management. The technical indicators point to a bearish trend, while the valuation suggests potential overvaluation despite a high dividend yield. The overall score reflects these mixed signals, highlighting financial and market risks.

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 several key streams, primarily from the sale of its manufactured products such as toys, timepieces, and optical items. The company operates manufacturing facilities where it produces these goods, which are then sold to retailers, wholesalers, and direct consumers. Revenue is also earned through strategic partnerships and collaborations with other brands and distributors, enhancing its market reach. Additionally, the company's involvement in diverse sectors allows it to leverage cross-market opportunities and optimize its supply chain to reduce costs and maximize profitability.

Herald Holdings Limited Financial Statement Overview

Summary

Herald Holdings Limited shows signs of financial strain, with declining revenue and profitability pressures. Despite these challenges, the balance sheet is strong with low leverage and a solid equity base. Cash flow management is effective, although there's a need to address revenue growth and profitability to improve overall financial health.

Income Statement

Herald Holdings Limited has experienced a significant decline in revenue, with a substantial decrease from 2023 to 2024. The gross profit margin dropped, and the company reported a net loss, indicating profitability issues. The EBIT margin turned negative, showing operational challenges, although the EBITDA margin remained positive, suggesting some level of operational cash flow generation.

Balance Sheet

The company maintains a strong equity position with a high equity ratio indicating financial stability. The debt-to-equity ratio is low, suggesting minimal leverage risk. However, the return on equity is negative due to net losses, which is a concern for overall profitability and return to shareholders.

Cash Flow

Free cash flow has decreased significantly, but the company remains free cash flow positive in 2024. The operating cash flow to net income ratio is strong due to positive operating cash flow despite net losses, indicating good cash conversion from operations. However, the free cash flow growth rate has declined.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	696.72M	711.34M	1.26B	1.18B	927.77M	946.24M
Gross Profit	171.94M	160.28M	299.77M	119.99M	194.06M	200.00M
EBITDA	19.84M	17.41M	167.41M	-33.71M	19.91M	29.21M
Net Income	4.59M	-14.38M	82.33M	-61.15M	20.56M	18.97M
Balance Sheet
Total Assets	883.58M	812.45M	903.50M	972.46M	948.35M	876.23M
Cash, Cash Equivalents and Short-Term Investments	360.34M	306.58M	250.76M	175.20M	260.48M	264.80M
Total Debt	4.14M	11.76M	29.35M	66.29M	11.05M	13.74M
Total Liabilities	271.09M	219.46M	247.80M	341.62M	229.76M	196.37M
Stockholders Equity	599.03M	580.37M	642.41M	617.07M	706.82M	672.44M
Cash Flow
Free Cash Flow	79.90M	111.02M	146.22M	-93.67M	11.96M	45.82M
Operating Cash Flow	81.18M	112.54M	150.24M	-77.51M	23.42M	49.70M
Investing Cash Flow	4.00M	1.52M	22.52M	-10.75M	-7.61M	32.42M
Financing Cash Flow	-52.15M	-53.59M	-89.16M	8.96M	-45.06M	-73.98M

Herald Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.55
• 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 0.55 is below the 20-day moving average (MA) of 0.55, above the 50-day MA of 0.52, and above the 200-day MA of 0.48, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 53.49 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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
Sector *	63 Neutral	$17.10B	10.62	-8.48%	2.94%	1.62%	-25.72%
0114	48 Neutral	HK$338.51M	10.29	5.68%	10.91%	-19.10%	-90.12%
PMTYF	―	$81.17M	3.25	11.10%	224.50%	―	―
3830	48 Neutral	HK$67.00M	―	-18.04%	―	1.11%	36.36%
1005	45 Neutral	HK$340.29M	―	-43.56%	5.56%	-36.06%	-190.94%
0180	41 Neutral	HK$251.91M	―	-9.27%	―	-7.74%	-150.19%
6918	41 Neutral	HK$77.45M	―	-19.60%	―	64.02%	42.01%

Herald Holdings Limited Corporate Events

Herald Holdings Secures RMB20.89 Million in Land Relocation Deal

Herald Holdings Limited, through its subsidiary Herald Investments, has entered into agreements with Baihe Land Office to surrender two pieces of land in exchange for a relocation compensation of approximately RMB20.89 million (HK$22.14 million). This transaction, categorized as discloseable under the Listing Rules, involves the surrender of land assets and is expected to impact the company’s financial position by providing a significant cash inflow.

Herald Holdings Limited Announces Change in Share Registrar

Herald Holdings Limited has announced a change in its Hong Kong branch share registrar and transfer office, effective from June 2, 2025. The new registrar will be Tricor Investor Services Limited. This change requires applications for registration of share transfers to be lodged with the new registrar, and uncollected share certificates after May 30, 2025, will be available for collection from the new office starting June 2, 2025.