King Fook Holdings Limited (0280) AI Stock Analysis

• Market Cap: HK$418.28M
• Dividend Yield: 6.59%
• Average Volume (3M): 663.86K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.29
• Revenue Growth: 14.24%
• EPS Growth: 3.63%
• Country: HK
• Employees: 139
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Luxury Goods
• EPS (TTM): 0.06
• Shares Outstanding: 909,308,500
• 10 Day Avg. Volume: 639,700
• 30 Day Avg. Volume: 663,862
• PEG Ratio: 1.01
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 2.42
• 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: 8.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: HK$0.50 ▲(8.70% Upside)

King Fook Holdings Limited scores highly due to its strong financial performance and attractive valuation. The technical analysis supports a positive outlook with bullish momentum. The absence of earnings call data and corporate events does not detract from the overall positive assessment.

King Fook Holdings Limited Business Overview & Revenue Model

Company Description

King Fook Holdings Limited, an investment holding company, engages in the retail and wholesale of gold ornaments, jewelry, watches, gifts, and diamond products primarily in Hong Kong. It is involved in investment holding and trading activities; and bullion trading. The company was founded in 1949 and is based in Central, Hong Kong. King Fook Holdings Limited is a subsidiary of Yeung Chi Shing Estates Limited.

How the Company Makes Money

King Fook Holdings generates revenue primarily through the sale of its jewelry and watches, both in retail outlets and through wholesale distribution channels. The company benefits from a diverse customer base that includes both individual consumers and corporate clients. Key revenue streams include direct sales from its retail stores, online sales through its e-commerce platform, and bulk sales to other retailers and businesses. Additionally, the company may engage in partnerships with luxury brands to sell exclusive collections, further driving sales. Factors contributing to its earnings include market demand for luxury goods, effective inventory management, and strategic marketing initiatives that enhance brand visibility.

King Fook Holdings Limited Financial Statement Overview

Summary

King Fook Holdings Limited exhibits strong financial health with robust revenue growth and profitability. The balance sheet is stable with low leverage, and cash flow generation is strong, though there is room for optimization.

Income Statement

King Fook Holdings Limited has shown a strong revenue growth rate of 10.89% in the latest year, indicating a positive trajectory in sales. The gross profit margin of approximately 31% and net profit margin of nearly 10% reflect solid profitability, although there is a slight decline in EBIT and EBITDA margins compared to the previous year. Overall, the company demonstrates robust revenue growth and profitability, but there is room for improvement in operational efficiency.

Balance Sheet

The balance sheet of King Fook Holdings Limited is stable with a low debt-to-equity ratio of 0.17, indicating prudent financial leverage. The return on equity stands at 10.79%, showcasing effective utilization of equity to generate profits. The equity ratio is strong, reflecting a solid financial position with a significant portion of assets financed by equity. Overall, the company maintains a healthy balance sheet with low leverage and strong equity utilization.

Cash Flow

The cash flow statement reveals a significant free cash flow growth rate of 26.47%, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 0.85, indicating a good conversion of income into cash. However, the free cash flow to net income ratio of 0.97 suggests that nearly all net income is being converted into free cash flow, which is positive but leaves limited room for reinvestment. Overall, the company shows strong cash flow generation with potential for further optimization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	798.96M	885.99M	775.57M	894.70M	819.15M	640.63M
Gross Profit	253.61M	274.64M	240.78M	263.72M	231.16M	181.99M
EBITDA	74.91M	120.18M	121.58M	142.53M	114.20M	83.10M
Net Income	78.51M	88.29M	85.20M	79.47M	60.05M	28.61M
Balance Sheet
Total Assets	957.96M	1.01B	917.32M	854.18M	863.29M	821.41M
Cash, Cash Equivalents and Short-Term Investments	414.03M	453.68M	424.68M	372.38M	398.77M	297.56M
Total Debt	117.73M	135.83M	101.38M	40.78M	115.09M	125.42M
Total Liabilities	186.55M	188.38M	162.03M	87.21M	155.60M	160.77M
Stockholders Equity	771.34M	818.23M	755.22M	766.90M	707.59M	660.54M
Cash Flow
Free Cash Flow	105.55M	133.48M	144.43M	88.47M	160.88M	155.27M
Operating Cash Flow	119.57M	138.27M	153.93M	97.66M	171.32M	160.34M
Investing Cash Flow	-137.44M	-19.84M	-131.63M	63.77M	-66.34M	-91.68M
Financing Cash Flow	-143.29M	-72.95M	-92.08M	-114.75M	-59.72M	-53.78M

King Fook Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.46
• 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:0280, the sentiment is Positive. The current price of 0.46 is above the 20-day moving average (MA) of 0.45, above the 50-day MA of 0.43, and above the 200-day MA of 0.37, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.86 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0280.

King Fook Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0280	80 Outperform	HK$418.28M	4.74	11.22%	6.59%	14.24%	3.63%
Sector *	67 Neutral	S$3.24B	10.89	14.90%	4.56%	7.79%	-10.29%
CEBTF	―	$205.67M	65.56	-6.53%	―	―	―
CHOWF	―	$757.58M	7.86	6.25%	10.78%	―	―
CJEWF	―	$17.77B	23.82	22.73%	3.64%	―	―
EPRJF	―	$329.04M	8.65	4.99%	1.36%	―	―
LKFLF	―	$1.76B	13.60	8.44%	4.70%	―	―

King Fook Holdings Limited Corporate Events

King Fook Holdings Secures Tenancy Agreements for Key Operations

King Fook Holdings Limited has entered into two tenancy agreements and a licence for the continued use of its key retail outlet and headquarters in King Fook Building, Hong Kong. These agreements, which are considered connected transactions, are exempt from shareholder approval due to their compliance with specific listing rules. The agreements, effective from August 2025 to August 2026, involve a monthly rent of $805,900 and additional charges for telephone sets and furniture use. The company views these agreements as necessary for operational continuity amidst uncertain economic conditions, offering flexibility with a one-year term.

King Fook Holdings Announces Director Resignation

King Fook Holdings Limited announced the resignation of Mr. Cheng Kar Shing, Peter, an independent non-executive director and a member of the remuneration and nomination committees, effective 26 July 2025. Mr. Cheng is stepping down to focus on other engagements, and there are no disagreements with the board or issues that need to be communicated to shareholders. The board expressed gratitude for Mr. Cheng’s contributions.

King Fook Holdings Limited Announces Updated Director Roles

King Fook Holdings Limited has announced its updated list of directors and their respective roles within the company. The executive team, led by Chairman Mr. Tang Yat Sun, Richard, is responsible for strategic planning and business operations. The board includes a mix of executive, non-executive, and independent non-executive directors, each bringing expertise in areas such as marketing, governance, and global expansion. This announcement highlights the company’s commitment to maintaining a diverse and experienced leadership team, which is crucial for its continued growth and market competitiveness.

King Fook Holdings Announces Annual General Meeting and Key Resolutions

King Fook Holdings Limited has announced its annual general meeting to be held on September 4, 2025, where key resolutions will be discussed, including the adoption of financial statements, declaration of a final dividend, election of directors, and appointment of auditors. The meeting will also address resolutions related to the issuance of additional shares, which could impact the company’s capital structure and shareholder value.

King Fook Holdings Appoints New Remuneration Committee Member

King Fook Holdings Limited has announced the appointment of Mr. Sin Nga Yan, Benedict, as a new member of its remuneration committee, effective from July 1, 2025. This strategic appointment is expected to enhance the governance structure of the company, potentially impacting its operational efficiency and stakeholder confidence.

King Fook Holdings Limited Announces Board Roles and Strategic Focus

King Fook Holdings Limited has announced the roles and functions of its board of directors, highlighting the strategic planning and operational oversight responsibilities of its executive and non-executive members. This announcement underscores the company’s commitment to robust governance and strategic growth, with implications for enhanced market positioning and stakeholder confidence.

King Fook Holdings Updates Nomination Committee Terms

King Fook Holdings Limited has outlined the terms of reference for its Nomination Committee, which are aligned with the Corporate Governance Code and the Listing Rules of the Hong Kong Stock Exchange. Effective from July 1, 2025, the committee will be responsible for reviewing the board’s structure, size, and composition, identifying qualified board members, assessing the independence of directors, and making recommendations on director appointments and succession planning. This move is aimed at enhancing the company’s governance and aligning its board composition with its corporate strategy.

King Fook Holdings Reports Stable Financial Performance for FY2025

King Fook Holdings Limited reported its financial results for the year ending March 31, 2025, showing a revenue increase to HK$885,991,000 from HK$775,573,000 the previous year. Despite facing challenges such as impairment losses and fair value losses on gold loans, the company achieved a profit of HK$88,266,000, up from HK$85,191,000. The results indicate a stable financial performance with a slight increase in earnings per share, reflecting the company’s resilience in the luxury goods market.

King Fook Holdings Declares Final Dividend for FY2025

King Fook Holdings Limited has announced a final ordinary cash dividend of HKD 0.026 per share for the financial year ending March 31, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may influence investor sentiment positively, as the payment date is set for October 3, 2025.

King Fook Holdings to Review Annual Results and Dividend

King Fook Holdings Limited has announced that its board of directors will meet on June 27, 2025, to review and approve the company’s annual results for the fiscal year ending March 31, 2025. The board will also consider the payment of a final dividend. This meeting is a significant event for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.

King Fook Holdings Secures New Tenancy for Hong Kong Retail Outlet

King Fook Holdings Limited, through its subsidiary King Fook Jewellery Group Limited, has entered into a new tenancy agreement for a retail outlet in Central, Hong Kong, with a two-year term starting September 2025. This transaction, deemed a discloseable one under the Listing Rules, involves a total rent of $9,888,000 and is part of the company’s strategy to maintain its retail presence for watches and accessories. The agreement was negotiated at arm’s length and is considered fair and reasonable by the company’s directors, aligning with market rent rates and benefiting shareholders.