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Herald Holdings Limited (HK:0114)
:0114
Hong Kong Market

Herald Holdings Limited (0114) AI Stock Analysis

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HK

Herald Holdings Limited

(0114)

Rating:48Neutral
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 (0114) vs. iShares MSCI Hong Kong ETF (EWH)

Herald Holdings Limited Business Overview & Revenue Model

Company DescriptionHerald Holdings Limited (0114) is an investment holding company that operates primarily in the sectors of toy manufacturing, timepiece production, and optical product manufacturing. The company is involved in designing, producing, and distributing a wide range of products including toys, watches, clocks, and optical instruments. Herald Holdings Limited serves various markets and caters to both domestic and international clients, leveraging its expertise in product innovation and quality manufacturing.
How the Company Makes MoneyHerald 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
45
Neutral
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
60
Neutral
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
55
Neutral
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.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue696.72M711.34M1.26B1.18B927.77M946.24M
Gross Profit171.94M160.28M299.77M119.99M194.06M200.00M
EBITDA19.84M17.41M167.41M-33.71M19.91M29.21M
Net Income4.59M-14.38M82.33M-61.15M20.56M18.97M
Balance Sheet
Total Assets883.58M812.45M903.50M972.46M948.35M876.23M
Cash, Cash Equivalents and Short-Term Investments360.34M306.58M250.76M175.20M260.48M264.80M
Total Debt4.14M11.76M29.35M66.29M11.05M13.74M
Total Liabilities271.09M219.46M247.80M341.62M229.76M196.37M
Stockholders Equity599.03M580.37M642.41M617.07M706.82M672.44M
Cash Flow
Free Cash Flow79.90M111.02M146.22M-93.67M11.96M45.82M
Operating Cash Flow81.18M112.54M150.24M-77.51M23.42M49.70M
Investing Cash Flow4.00M1.52M22.52M-10.75M-7.61M32.42M
Financing Cash Flow-52.15M-53.59M-89.16M8.96M-45.06M-73.98M

Herald Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.55
Price Trends
50DMA
0.50
Positive
100DMA
0.49
Positive
200DMA
0.46
Positive
Market Momentum
MACD
0.02
Negative
RSI
70.33
Negative
STOCH
37.14
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 above the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.50, and above the 200-day MA of 0.46, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 70.33 is Negative, neither overbought nor oversold. The STOCH value of 37.14 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$1.66B8.2911.32%0.79%-7.42%-17.86%
69
Neutral
HK$3.43B11.513.20%9.09%14.45%15.04%
57
Neutral
HK$397.42M-3.04%13.33%-21.53%-131.69%
56
Neutral
$3.37B4.05-1.30%6.64%0.16%-63.79%
48
Neutral
HK$332.47M10.115.68%21.82%-19.10%-90.12%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0114
Herald Holdings Limited
0.55
0.20
57.14%
HK:0732
Truly International Holdings
1.10
0.20
22.36%
HK:1170
Kingmaker Footwear Holdings
0.61
-0.03
-4.69%
HK:0398
Oriental Watch Holdings
3.38
0.30
9.74%

Herald Holdings Limited Corporate Events

Herald Holdings Secures RMB20.89 Million in Land Relocation Deal
Apr 28, 2025

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
Mar 10, 2025

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.

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 23, 2025