Raymond Industrial Limited (0229) AI Stock Analysis

• Market Cap: HK$471.25M
• Dividend Yield: 12.9%
• Average Volume (3M): 36.04K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.17
• Revenue Growth: -12.47%
• EPS Growth: -26.29%
• Country: HK
• Employees: 2,646
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.07
• Shares Outstanding: 501,324,860
• 10 Day Avg. Volume: 31,600
• 30 Day Avg. Volume: 36,036
• PEG Ratio: -0.28
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 13.29
• 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: 69 Neutral
• Price Target: HK$1.00 ▲(7.53% Upside)

The score is primarily supported by low financial risk from a debt-free balance sheet and an attractive valuation (low P/E and high dividend yield). These strengths are tempered by weakening profitability and mixed cash conversion, while technical indicators point to soft near-term momentum.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk, providing stability and flexibility for future investments and growth opportunities.

Strong Governance Practices

Enhanced governance practices improve transparency and financial oversight, which can boost investor confidence and ensure regulatory compliance.

Stable Equity Base

A stable equity base indicates solid capitalization, supporting long-term financial health and resilience against market fluctuations.

Negative Factors

Declining Profitability

Weakened profitability can strain future earnings potential and limit the company's ability to reinvest in growth or return value to shareholders.

Decreased Cash Flow

Decreased cash flow reduces financial flexibility, potentially impacting the company's ability to fund operations and invest in new opportunities.

Revenue Decline

A decline in revenue suggests challenges in market demand or competitive pressures, which could affect long-term growth prospects.

Raymond Industrial Limited Business Overview & Revenue Model

Company Description

Raymond Industrial Limited, together with its subsidiaries, manufactures and sells electrical home appliances in Japan, the United States, the People's Republic of China, Europe, rest of Asia, Australia, Canada, South America, and Africa. It offers environmental products, batteries, health and personal care products, and kitchen products, as well as other small and medium sized electrical household appliances. The company was incorporated in 1964 and is headquartered in Sha Tin, Hong Kong.

How the Company Makes Money

Raymond Industrial Limited generates revenue through the sale of its electrical home appliances. The company manufactures these products and distributes them to various customers, including retail chains, distributors, and direct consumers. Revenue streams are primarily derived from domestic sales in Hong Kong and international markets, where the company has established a presence. Partnerships with retailers and distributors play a significant role in enhancing the company's market reach and sales volume. Additionally, the company's focus on product development and innovation helps maintain its competitive edge, contributing to sustained revenue growth.

Raymond Industrial Limited Financial Statement Overview

Summary

Strong financial resilience is driven by a debt-free balance sheet and a large, stable equity base, reducing financial risk. Offsetting this, profitability has weakened (2024 revenue down ~7% and net margin down to ~4.2%), and cash generation is positive but softer year over year with mixed cash conversion and historical volatility.

Income Statement

Profitability is positive but weakening: revenue fell ~7.0% in 2024 after a strong 2023, and net margin declined to ~4.2% (from ~5.0% in 2023). Gross margin improved modestly (~13.9%), but operating profitability compressed versus prior years, with 2024 showing an unusually weak operating result relative to EBITDA. Overall, the business remains profitable, but earnings quality and momentum have become less consistent.

Balance Sheet

The balance sheet is a clear strength: total debt is reported at zero across all years, and equity remains large and stable (~HK$676m in 2024) relative to assets (~HK$880m). Returns on equity are reasonable (about ~6.7% in 2024, down from ~10.1% in 2023), implying solid capitalization with limited financial risk, though profitability softness is reducing returns.

Cash Flow

Cash generation is generally positive, with 2024 operating cash flow of ~HK$71.9m and free cash flow of ~HK$33.9m, but both declined year over year (free cash flow down ~13.5%). Cash conversion is mixed: free cash flow is ~47% of net income in 2024 (down from ~56% in 2023), and the company has shown volatility historically (notably negative free cash flow in 2021). Overall, cash flow is adequate but not consistently strong versus earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.08B	1.08B	1.36B	1.06B	1.43B	1.29B
Gross Profit	149.37M	149.46M	183.72M	129.99M	172.33M	190.38M
EBITDA	57.28M	55.73M	80.90M	65.92M	80.74M	110.06M
Net Income	50.90M	45.22M	67.87M	30.50M	41.96M	63.22M
Balance Sheet
Total Assets	881.53M	880.24M	891.05M	854.14M	956.88M	958.82M
Cash, Cash Equivalents and Short-Term Investments	332.53M	354.33M	367.42M	334.38M	244.80M	291.89M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	209.54M	204.48M	217.51M	208.27M	286.05M	303.60M
Stockholders Equity	671.99M	675.76M	673.54M	645.87M	670.83M	655.22M
Cash Flow
Free Cash Flow	4.57M	33.95M	51.24M	116.80M	-13.10M	64.40M
Operating Cash Flow	43.38M	71.88M	91.75M	136.91M	19.09M	79.91M
Investing Cash Flow	-23.48M	-20.52M	-23.66M	-16.55M	-31.51M	-12.62M
Financing Cash Flow	-65.44M	-70.16M	-35.10M	-29.96M	-35.42M	-29.67M

Raymond Industrial Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.93
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0229, the sentiment is Positive. The current price of 0.93 is above the 20-day moving average (MA) of 0.92, below the 50-day MA of 0.94, and above the 200-day MA of 0.88, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.03 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0229.

Raymond Industrial Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1418	73 Outperform	HK$355.25M	3.45	10.72%	7.76%	-1.05%	-2.97%
0229	69 Neutral	HK$471.25M	9.26	7.53%	12.90%	-12.47%	-26.29%
2381	69 Neutral	HK$398.00M	15.19	18.10%	6.94%	10.65%	25.96%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6822	51 Neutral	HK$287.00M	-12.73	-4.25%	9.76%	8.85%	-18.82%
2222	48 Neutral	HK$339.87M	-4.42	-2.05%	―	-4.69%	-123.25%
0684	44 Neutral	HK$189.84M	-2.23	-11.32%	31.48%	4.60%	-9.42%

Raymond Industrial Limited Corporate Events

Raymond Industrial Limited Updates Audit Committee Terms

Raymond Industrial Limited has updated the terms of reference for its Audit Committee, which was originally established in 2012 and has undergone several amendments, the latest being on November 7, 2025. The Audit Committee is empowered to access all necessary resources and personnel, including external auditors, to fulfill its responsibilities, which include overseeing the appointment and independence of auditors, and ensuring effective audit processes. This update signifies the company’s commitment to maintaining robust governance practices and enhancing the transparency and effectiveness of its financial oversight mechanisms.

Raymond Industrial Limited Updates Remuneration Committee Terms

Raymond Industrial Limited has updated the terms of reference for its Remuneration Committee, effective November 7, 2025. The committee, which includes both independent non-executive directors and executive directors, is tasked with overseeing remuneration policies and practices. This update underscores the company’s dedication to maintaining robust governance structures and ensuring transparency in its compensation processes, which could enhance stakeholder confidence and align with regulatory standards.