Herald Holdings Limited (0114) AI Stock Analysis

• Market Cap: HK$362.69M
• Dividend Yield: 10.34%
• Average Volume (3M): 135.98K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.02
• Revenue Growth: -1.07%
• EPS Growth: N/A
• Country: HK
• Employees: 2,282
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Leisure
• EPS (TTM): <0.01
• Shares Outstanding: 604,490,700
• 10 Day Avg. Volume: 44,500
• 30 Day Avg. Volume: 135,983
• 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: HK$0.50
• Price Target Upside: -16.67% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: HK$0.50 ▼(-16.67% Downside)

Herald Holdings Limited's stock is supported by strong technical indicators and attractive valuation, with a high dividend yield and fair P/E ratio. Financial performance shows recovery with improved profitability and a strong balance sheet, though cash flow management needs improvement. The absence of earnings call and corporate events data does not impact the overall score.

Herald Holdings Limited Business Overview & Revenue Model

Company Description

Herald Holdings Limited (0114) is an investment holding company based in Hong Kong, actively engaged in various sectors including logistics, trading, and manufacturing. The company focuses on providing high-quality products and services across diverse industries, leveraging its extensive network and experience in the market. Herald Holdings specializes in the sourcing and distribution of consumer goods, as well as offering logistics solutions that enhance operational efficiency for its clients.

How the Company Makes Money

Herald Holdings Limited generates revenue primarily through its trading operations, where it sources and supplies a range of consumer goods to various retail and wholesale customers. The company also earns income from its logistics services, which include warehousing, transportation, and supply chain management solutions for businesses. Additionally, partnerships with manufacturers and other suppliers enhance its product offerings and distribution capabilities, contributing to its overall earnings. The company's revenue model is supported by long-term contracts with clients, seasonal demand fluctuations, and its ability to adapt to market trends, ensuring a consistent revenue stream.

Herald Holdings Limited Financial Statement Overview

Summary

Herald Holdings Limited shows a recovery trajectory with improved profitability and a strong balance sheet. The income statement indicates positive trends in margins and revenue stabilization, while the balance sheet reflects low leverage and financial stability. However, cash flow management presents challenges, with 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	696.72M	703.70M	711.34M	1.26B	1.18B	927.77M
Gross Profit	171.94M	204.51M	160.28M	299.77M	119.99M	194.06M
EBITDA	19.84M	55.16M	17.41M	167.41M	-33.71M	19.91M
Net Income	4.59M	32.88M	-14.38M	82.33M	-61.15M	20.56M
Balance Sheet
Total Assets	883.58M	826.82M	812.45M	903.50M	972.46M	948.35M
Cash, Cash Equivalents and Short-Term Investments	350.96M	358.16M	306.58M	250.76M	175.20M	260.48M
Total Debt	4.14M	3.79M	11.76M	29.35M	66.29M	11.05M
Total Liabilities	271.09M	236.78M	219.46M	247.80M	341.62M	229.76M
Stockholders Equity	599.03M	577.03M	580.37M	642.41M	617.07M	706.82M
Cash Flow
Free Cash Flow	79.90M	71.29M	111.02M	146.22M	-93.67M	11.96M
Operating Cash Flow	81.18M	74.56M	112.54M	150.24M	-77.51M	23.42M
Investing Cash Flow	4.00M	2.64M	1.52M	22.52M	-10.75M	-7.61M
Financing Cash Flow	-52.15M	-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: Negative
• 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 above the 20-day moving average (MA) of 0.57, above the 50-day MA of 0.55, and above the 200-day MA of 0.49, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 64.67 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 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	73 Outperform	HK$362.69M	11.03	5.68%	10.34%	-1.07%	―
0869	73 Outperform	$696.20M	5.29	11.10%	12.27%	-16.05%	-41.16%
Sector *	56 Neutral	HK$25.46B	5.06	-2.69%	5.60%	-0.43%	-53.15%
6918	49 Neutral	HK$113.67M	―	-19.60%	―	64.02%	42.01%
3830	48 Neutral	HK$71.00M	―	-31.72%	―	-8.50%	4.11%
1005	45 Neutral	HK$340.29M	―	-43.56%	5.56%	-36.06%	-190.94%
0180	41 Neutral	HK$221.49M	―	-9.27%	―	-7.74%	-150.19%

Herald Holdings Limited Corporate Events

Herald Holdings Limited Announces 2025 AGM and Key Resolutions

Herald Holdings Limited has announced its Annual General Meeting to be held on September 18, 2025, in Hong Kong. Key agenda items include the consideration of audited financial statements, re-election of directors, re-appointment of KPMG as auditors, and the declaration of a final dividend of HK3 cents per share. Additionally, the company seeks approval for the directors to exercise powers to purchase shares and to allot and issue additional shares, which could impact the company’s market operations and shareholder value.

Herald Holdings Limited Reports Turnaround with HK$33.3 Million Profit in 2025

Herald Holdings Limited reported its annual results for the year ending March 31, 2025, showing a significant turnaround with a profit of HK$33.3 million compared to a loss in the previous year. The company’s revenue slightly decreased to HK$703.7 million, but it achieved a higher gross profit due to reduced cost of sales. This positive financial performance indicates improved operational efficiency and could enhance the company’s industry positioning, benefiting stakeholders.

Herald Holdings Limited Announces Final Dividend for FY2025

Herald Holdings Limited has announced a final ordinary cash dividend of HKD 0.03 per share for the financial year ending 31 March 2025. The dividend will be paid on 14 October 2025, with the ex-dividend date set for 29 September 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

Herald Holdings Updates Nomination Committee Terms

Herald Holdings Limited has revised the terms of reference for its Nomination Committee, which is responsible for overseeing the structure, size, and composition of the Board. The Committee’s duties include recommending board changes to align with corporate strategy, assessing director independence, and ensuring board diversity. This revision aims to enhance the governance and strategic alignment of the company’s leadership, potentially impacting its market positioning and stakeholder confidence.

Herald Holdings to Review Fiscal Year Results and Dividend

Herald Holdings Limited has announced that its Board of Directors will convene on June 30, 2025, to review and approve the company’s final results for the fiscal year ending March 31, 2025. The meeting will also consider the declaration of a final dividend, which could impact shareholder returns and reflect the company’s financial health.

Herald Holdings Limited Issues Positive Profit Alert Amid Industry Challenges

Herald Holdings Limited has announced a positive profit alert, expecting a net profit of HK$25 million to HK$35 million for the year ending March 31, 2025, compared to a net loss of HK$14.4 million the previous year. This improvement is attributed to gains on trading securities and cost-saving measures. However, the company remains cautious about future performance due to geopolitical tensions and increased industry competition.