Pak Fah Yeow International Limited (0239) AI Stock Analysis

• Market Cap: HK$744.82M
• Dividend Yield: 7.52%
• Average Volume (3M): 22.62K
• Price to Earnings (P/E): 10.5
• Beta (1Y): -0.12
• Revenue Growth: -24.96%
• EPS Growth: -26.43%
• Country: HK
• Employees: 106
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.13
• Shares Outstanding: 311,640,000
• 10 Day Avg. Volume: 26,750
• 30 Day Avg. Volume: 22,616
• PEG Ratio: -0.37
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 3.26
• P/FCF Ratio: 9.91
• 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: 74 Outperform
• Price Target: HK$2.50 ▲(5.04% Upside)

The overall stock score of 74 reflects a strong valuation with an attractive dividend yield and a stable technical outlook. However, financial performance is mixed due to declining revenue and net profit margins, and the lack of complete cash flow data limits a full assessment of liquidity.

Positive Factors

Strong Profitability Margins

High profitability margins indicate efficient operations and strong pricing power, which can support long-term financial stability and growth.

Robust Balance Sheet

A robust balance sheet with minimal leverage provides financial flexibility, reducing risk and enabling strategic investments or expansions.

Efficient Cash Conversion

Efficient conversion of profits into cash flow supports liquidity and allows the company to fund operations and growth without relying heavily on external financing.

Negative Factors

Declining Revenue

Declining revenue growth suggests challenges in market demand or competitive positioning, which could impact long-term business sustainability if not addressed.

Decreasing Net Profit Margin

A decreasing net profit margin indicates rising costs or pricing pressures, which could erode profitability if the trend continues, affecting the company's financial health.

Incomplete Cash Flow Data

Lack of complete cash flow data limits the ability to assess liquidity and cash management, posing a risk to understanding the company's financial flexibility and operational efficiency.

Pak Fah Yeow International Limited Business Overview & Revenue Model

Company Description

Pak Fah Yeow International Limited, together with its subsidiaries, manufactures, markets, and distributes healthcare products under the Hoe Hin brand name in the People's Republic of China, Hong Kong, Macau, Southeast Asia, North America, the United Kingdom, and internationally. It operates through three segments: Healthcare, Property Investments, and Treasury Investments. The company offers white flower embrocation medicated oils, strain relief products, and ointments under, as well as Fúzai 239, a floral-scented white flower embrocation. In addition, it invests in commercial, industrial, residential, and car park properties; and provides advertising agency services. The company was founded in 1927 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Pak Fah Yeow International Limited generates revenue primarily through the sale of its medicinal products, with key revenue streams coming from both domestic and international markets. The company markets its flagship medicated oil and other topical analgesics through various distribution channels, including retail pharmacies, health stores, and online platforms. Additionally, Pak Fah Yeow has established strategic partnerships with distributors and retailers in various regions to enhance its market reach. The company also benefits from brand loyalty and recognition, contributing to steady sales growth. Seasonal promotions and marketing campaigns further bolster revenue, while the expansion of its product line into new health-related categories offers potential for increased earnings.

Pak Fah Yeow International Limited Financial Statement Overview

Summary

Pak Fah Yeow International Limited shows a stable financial structure with strong profitability margins and low leverage. However, declining revenue and net profit margins indicate potential operational challenges. The absence of complete cash flow data for 2024 limits a full assessment of liquidity and cash management capabilities.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	199.54M	236.91M	259.31M	147.20M	139.82M	109.34M
Gross Profit	173.45M	203.20M	167.59M	74.06M	68.71M	41.48M
EBITDA	105.12M	105.73M	136.81M	45.90M	54.67M	-25.22M
Net Income	70.97M	78.63M	105.04M	29.95M	38.19M	-38.36M
Balance Sheet
Total Assets	852.25M	843.35M	907.47M	823.14M	837.75M	795.40M
Cash, Cash Equivalents and Short-Term Investments	365.20M	290.02M	277.61M	180.34M	178.28M	131.48M
Total Debt	4.79M	4.20M	4.74M	5.50M	16.21M	17.86M
Total Liabilities	148.07M	111.45M	142.28M	115.91M	130.03M	122.20M
Stockholders Equity	704.18M	731.91M	765.18M	707.23M	707.72M	673.19M
Cash Flow
Free Cash Flow	57.39M	78.02M	144.84M	39.76M	69.54M	7.62M
Operating Cash Flow	57.94M	78.96M	147.90M	39.92M	70.36M	8.26M
Investing Cash Flow	2.37M	-3.19M	16.65M	-6.67M	-565.00K	-637.00K
Financing Cash Flow	-66.91M	-67.54M	-48.96M	-33.91M	-22.41M	-29.07M

Pak Fah Yeow International Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0239, the sentiment is Neutral. The current price of 2.38 is below the 20-day moving average (MA) of 2.41, below the 50-day MA of 2.43, and above the 200-day MA of 2.33, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.21 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	78 Outperform	HK$1.20B	6.10	11.38%	―	10.26%	6.24%
0239	74 Outperform	HK$744.82M	10.50	9.75%	7.52%	-24.96%	-26.43%
3737	68 Neutral	HK$694.54M	28.90	1.87%	9.43%	-1.99%	-81.52%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1652	49 Neutral	HK$595.53M	-3.08	-40.38%	―	-43.46%	-96.48%
0897	46 Neutral	HK$427.54M	-28.86	-1.16%	7.50%	59.60%	-351.02%
1498	41 Neutral	HK$184.55M	-3.69	-33.22%	―	-17.32%	55.74%