Pak Fah Yeow International Limited (0239) AI Stock Analysis

• Market Cap: HK$788.45M
• Dividend Yield: 15.02%
• Average Volume (3M): 41.32K
• Price to Earnings (P/E): 10.0
• Beta (1Y): -0.06
• Revenue Growth: -8.64%
• EPS Growth: -25.13%
• Country: HK
• Employees: 106
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.25
• Shares Outstanding: 311,640,000
• 10 Day Avg. Volume: 9,750
• 30 Day Avg. Volume: 41,316
• PEG Ratio: -0.51
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.88
• 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: 70 Outperform
• Price Target: HK$2.50 ▲(0.81%Upside)

The stock's strong valuation, indicated by a low P/E ratio and high dividend yield, is the most significant factor driving the overall score. While the financial performance shows strong profitability and a robust balance sheet, declining revenue and net profit margins present challenges. Technical analysis indicates neutral market conditions with slight positive momentum.

Pak Fah Yeow International Limited Business Overview & Revenue Model

Company Description

Pak Fah Yeow International Limited (0239) is a Hong Kong-based company primarily engaged in the manufacturing and distribution of healthcare products. The company is best known for its flagship product, White Flower Embrocation, a medicated oil used for relief of pain and various ailments. Pak Fah Yeow operates in the healthcare sector, focusing on traditional medicated oils and related products.

How the Company Makes Money

Pak Fah Yeow International Limited generates revenue through the production and sale of its healthcare products, primarily the White Flower Embrocation. The company sells its products domestically in Hong Kong and internationally across various markets, including Southeast Asia, North America, and Europe. Revenue streams are derived from direct sales to consumers through retail channels, as well as distribution agreements with wholesalers and retailers. The company may also engage in marketing partnerships or sponsorships to increase brand visibility and product reach. With a strong brand legacy and recognition, Pak Fah Yeow leverages its traditional formulation to maintain a loyal customer base and sustain its revenue.

Pak Fah Yeow International Limited Financial Statement Overview

Summary

The company has strong profitability margins and a robust balance sheet with minimal leverage. However, declining revenue and net profit margin, along with incomplete cash flow data for 2024, indicate potential operational and liquidity challenges.

Income Statement

The company demonstrated a mixed financial performance. While the EBIT margin was strong at 41.42% and EBITDA margin at 56.19% in 2024, the net profit margin declined to 33.11% from 40.50% in 2023. Revenue in 2024 showed a negative growth rate of -8.43% compared to 2023, indicating challenges in maintaining revenue growth.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.01, indicating minimal leverage. The equity ratio stands at a healthy 86.77%, reflecting strong asset backing. However, the return on equity decreased to 10.75% in 2024 from 13.73% in 2023, showing a decline in profitability on equity.

Cash Flow

Cash flow analysis is limited due to missing data for 2024. In 2023, the operating cash flow to net income ratio was 1.41, indicating efficient conversion of profits into cash flow. Free cash flow growth was not calculable for 2024 due to unavailable data, presenting a challenge in assessing cash flow trends.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	236.91M	259.31M	147.20M	139.82M	109.34M
Gross Profit	203.20M	167.59M	74.06M	68.71M	41.48M
EBITDA	105.73M	136.81M	53.71M	52.20M	-25.22M
Net Income	78.63M	105.04M	29.95M	38.19M	-38.36M
Balance Sheet
Total Assets	843.35M	907.47M	823.14M	837.75M	795.40M
Cash, Cash Equivalents and Short-Term Investments	290.02M	277.61M	180.34M	178.28M	131.48M
Total Debt	4.20M	4.74M	5.50M	16.21M	17.86M
Total Liabilities	111.45M	142.28M	115.91M	130.03M	122.20M
Stockholders Equity	731.91M	765.18M	707.23M	707.72M	673.19M
Cash Flow
Free Cash Flow	78.02M	144.84M	39.76M	69.54M	7.62M
Operating Cash Flow	78.96M	147.90M	39.92M	70.36M	8.26M
Investing Cash Flow	-3.19M	16.65M	-6.67M	-565.00K	-637.00K
Financing Cash Flow	-67.54M	-48.96M	-33.91M	-22.41M	-29.07M

Pak Fah Yeow International Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.48
• 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:0239, the sentiment is Positive. The current price of 2.48 is above the 20-day moving average (MA) of 2.46, above the 50-day MA of 2.39, and above the 200-day MA of 2.40, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.39 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:0239.

Pak Fah Yeow International Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8049	81 Outperform	HK$1.17B	5.83		2.93%	2.82%	21.63%
0239	70 Outperform	HK$788.45M	10.03	10.50%	15.02%	-8.64%	-25.13%
3737	70 Outperform	HK$745.36M	7.21	8.81%	5.68%	5.79%	-43.49%
Sector *	60 Neutral	HK$15.31B	5.72	-7.43%	4.61%	11.60%	-21.06%
0897	55 Neutral	HK$388.16M	54.76	0.55%	8.70%	-66.75%	-83.83%
1652	49 Neutral	HK$286.74M	―	-40.39%	―	-43.73%	-434.56%
1498	47 Neutral	HK$197.47M	―	-26.80%	―	-6.09%	66.59%

Pak Fah Yeow International Limited Corporate Events

Pak Fah Yeow International Limited Updates Nomination Committee Terms

Pak Fah Yeow International Limited has revised the terms of reference for its Nomination Committee, effective from July 1, 2025. This update emphasizes the importance of diversity and independence within the committee, requiring a majority of members to be independent non-executive directors and ensuring gender diversity. The committee is tasked with meeting at least annually to oversee the nomination process, thereby potentially enhancing the company’s governance structure and stakeholder confidence.

Pak Fah Yeow International Limited Announces Successful AGM Resolutions

Pak Fah Yeow International Limited announced the successful passage of all resolutions at its annual general meeting held on June 16, 2025. Key resolutions included the approval of financial statements, declaration of final and special dividends, re-election of directors, and granting of mandates for share repurchase and issuance, reflecting strong shareholder support and strategic direction for the company.

Pak Fah Yeow International Limited Announces AGM and Share Repurchase Plan

Pak Fah Yeow International Limited has announced its upcoming annual general meeting scheduled for June 16, 2025, in Hong Kong. Key agenda items include the consideration of financial statements for the year ending December 2024, the declaration of a final and special dividend, re-election of directors, and the re-appointment of auditors. Additionally, the company seeks approval for a share repurchase program, allowing the repurchase of up to 10% of its issued shares, which could impact its market positioning and shareholder value.