King Fook Holdings Limited (0280) AI Stock Analysis

• Market Cap: HK$454.65M
• Dividend Yield: 6%
• Average Volume (3M): 677.97K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.24
• Revenue Growth: 14.52%
• EPS Growth: 15.74%
• Country: HK
• Employees: 139
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.04
• Shares Outstanding: 909,308,500
• 10 Day Avg. Volume: 967,900
• 30 Day Avg. Volume: 677,966
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$0.50 ▲(0.00% Upside)

King Fook Holdings Limited's strong financial performance and attractive valuation are key strengths, contributing significantly to the overall score. The company's robust revenue growth, profitability, and low leverage position it well in the luxury goods industry. While technical analysis presents a mixed picture, the stock's low P/E ratio and high dividend yield offer compelling value and income potential. The absence of recent earnings call data and corporate events does not detract from the positive outlook.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a positive trajectory in sales, reflecting strong market demand and effective business strategies in the luxury goods sector.

Balance Sheet Health

A low debt-to-equity ratio suggests prudent financial leverage, providing the company with financial stability and flexibility to invest in growth opportunities.

Cash Flow Generation

Strong cash flow generation enhances the company's ability to fund operations, invest in growth, and return capital to shareholders, supporting long-term financial health.

Negative Factors

Margin Pressure

Declining margins may indicate rising costs or pricing pressures, which could impact profitability if not addressed through efficiency improvements or pricing strategies.

Limited Reinvestment Capacity

While strong cash conversion is positive, limited reinvestment capacity may restrict the company's ability to capitalize on new growth opportunities or enhance operational capabilities.

Operational Efficiency

Enhancing operational efficiency is crucial for sustaining profitability, especially in a competitive luxury goods market where cost management can significantly impact margins.

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 retail and wholesale of jewelry and watches. The company's revenue model relies on the sale of gold, platinum, and diamond jewelry, alongside luxury timepieces from renowned brands. Key revenue streams include direct sales from retail outlets, online sales through e-commerce platforms, and wholesale transactions with other retailers. Additionally, the company may benefit from strategic partnerships with luxury watch brands, which enhance its product offerings and attract a more affluent customer base. Seasonal promotions, new product launches, and a focus on customer service also contribute to driving sales and increasing overall profitability.

King Fook Holdings Limited Financial Statement Overview

Summary

King Fook Holdings Limited exhibits strong financial health across its income statement, balance sheet, and cash flow statement. The company demonstrates robust revenue growth and profitability, supported by a stable balance sheet with low leverage. Cash flow generation is strong, although there is potential for further optimization. Overall, the company is well-positioned in the luxury goods industry with a solid financial foundation and growth trajectory.

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	885.99M	885.99M	775.57M	894.70M	819.15M	640.63M
Gross Profit	272.27M	274.64M	240.78M	263.72M	231.16M	181.99M
EBITDA	98.41M	120.18M	121.58M	142.53M	114.20M	83.10M
Net Income	88.29M	88.29M	85.20M	79.47M	60.05M	28.61M
Balance Sheet
Total Assets	1.01B	1.01B	917.32M	854.18M	863.29M	821.41M
Cash, Cash Equivalents and Short-Term Investments	453.68M	453.68M	424.68M	372.38M	398.77M	297.56M
Total Debt	135.83M	135.83M	101.38M	40.78M	115.09M	125.42M
Total Liabilities	188.38M	188.38M	162.03M	87.21M	155.60M	160.77M
Stockholders Equity	818.23M	818.23M	755.22M	766.90M	707.59M	660.54M
Cash Flow
Free Cash Flow	132.89M	133.48M	144.43M	88.47M	160.88M	155.27M
Operating Cash Flow	137.68M	138.27M	153.93M	97.66M	171.32M	160.34M
Investing Cash Flow	-19.84M	-19.84M	-131.63M	63.77M	-66.34M	-91.68M
Financing Cash Flow	-72.36M	-72.95M	-92.08M	-114.75M	-59.72M	-53.78M

King Fook Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 0.5 is below the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.53, and above the 200-day MA of 0.43, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 39.84 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 Negative 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
0590	77 Outperform	$14.27B	11.11	9.54%	4.43%	10.89%	2.02%
0280	73 Outperform	HK$454.65M	5.00	11.34%	6.00%	14.52%	15.74%
0887	69 Neutral	HK$1.76B	6.45	5.10%	4.05%	6.60%	-14.32%
1929	64 Neutral	HK$126.47B	21.57	23.74%	4.21%	-9.49%	32.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0116	61 Neutral	HK$8.45B	7.16	9.13%	4.60%	-10.41%	67.25%
0256	48 Neutral	HK$1.00B	-3.30	-7.92%	―	-18.07%	-1041.89%

King Fook Holdings Limited Corporate Events

King Fook Holdings Reports Increased Revenue and Profit for Interim 2025

King Fook Holdings Limited reported its unaudited interim results for the six months ending September 30, 2025, showing a revenue increase to HK$416,269,000 compared to the previous year. Despite facing a fair value loss on gold loans, the company achieved a profit of HK$39,720,000, indicating strong operational performance and resilience in a competitive market.

King Fook Holdings Declares Interim Dividend

King Fook Holdings Limited has announced an interim cash dividend of HKD 0.004 per share for the six months ending September 30, 2025, with a payment date set for December 11, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, potentially impacting its market positioning by reinforcing investor confidence.

King Fook Holdings to Review Interim Results and Dividend Declaration

King Fook Holdings Limited has announced that its board of directors will hold a meeting on November 14, 2025, to review and approve the interim financial results for the six months ending September 30, 2025. The meeting will also consider the declaration of an interim dividend, which could impact shareholder returns and the company’s financial strategy.