King Fook Holdings Limited (0280) AI Stock Analysis

• Market Cap: HK$409.19M
• Dividend Yield: 6.82%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.28
• Revenue Growth: -5.57%
• EPS Growth: -7.10%
• Country: HK
• Employees: 139
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Luxury Goods
• EPS (TTM): 0.06
• Shares Outstanding: 909,308,500
• 10 Day Avg. Volume: 743,242
• 30 Day Avg. Volume: 1,318,638
• PEG Ratio: -0.64
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.75
• 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: 80 Outperform
• Price Target: ―

King Fook Holdings Limited scores well due to its strong financial foundation, characterized by low leverage and robust cash flow, despite a revenue decline. Valuation metrics are highly favorable, with a low P/E ratio and high dividend yield, enhancing its attractiveness. Technical indicators show stable performance, further supporting the stock's positive outlook.

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 Limited generates revenue primarily through the sale of luxury gold ornaments, jewelry, and watches. The company's extensive retail network allows it to capture a significant market share in the luxury goods sector, appealing to both tourists and locals in Hong Kong. Additionally, the company diversifies its revenue streams through bullion trading, which involves buying and selling precious metals, and securities broking services, which leverage its expertise in financial markets to earn brokerage fees. Strategic partnerships with renowned international luxury brands further enhance its product offerings and market positioning, contributing to its overall earnings.

King Fook Holdings Limited Financial Statement Overview

Summary

King Fook Holdings Limited presents a generally strong financial position with notable profitability and cash flow metrics. While the revenue decline is a concern, the company's low leverage and efficient cash flow management provide a stable financial foundation, reducing risk and supporting its operations in the luxury goods industry.

Income Statement

The company demonstrates strong profitability with a high net profit margin of 10.98% and a robust EBIT margin of 11.18% in the last annual period. However, there is a noticeable revenue decline of 13.31% from the previous year, which poses a risk to growth trajectory.

Balance Sheet

The balance sheet is strong with a very low debt-to-equity ratio of 0.13, indicating low financial leverage. The equity ratio stands at 82.32%, reflecting a solid capital structure. Return on equity is healthy at 11.28%, suggesting efficient utilization of equity.

Cash Flow

The company shows strong cash flow management with a free cash flow to net income ratio of 1.70, indicating ample free cash flow generation. The operating cash flow to net income ratio is 1.81, further emphasizing strong cash flow relative to earnings.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	775.57M	894.70M	819.15M	640.63M	615.75M
Gross Profit	240.78M	263.72M	231.16M	181.99M	163.13M
EBITDA	121.58M	142.53M	114.20M	83.10M	82.81M
Net Income	85.20M	79.47M	60.05M	28.61M	5.69M
Balance Sheet
Total Assets	917.32M	854.18M	863.29M	821.41M	818.80M
Cash, Cash Equivalents and Short-Term Investments	424.68M	372.38M	398.77M	297.56M	196.07M
Total Debt	101.38M	40.78M	115.09M	125.42M	154.42M
Total Liabilities	162.03M	87.21M	155.60M	160.77M	183.31M
Stockholders Equity	755.22M	766.90M	707.59M	660.54M	635.39M
Cash Flow
Free Cash Flow	144.43M	88.47M	160.88M	155.27M	90.03M
Operating Cash Flow	153.93M	97.66M	171.32M	160.34M	93.44M
Investing Cash Flow	-131.63M	63.77M	-66.34M	-91.68M	-4.93M
Financing Cash Flow	-92.08M	-114.75M	-59.72M	-53.78M	-56.04M

King Fook Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 0.44 is above the 20-day moving average (MA) of 0.44, above the 50-day MA of 0.41, and above the 200-day MA of 0.36, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.34 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 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$409.19M	4.63	11.22%	6.82%	-5.57%	-7.10%
Sector *	50 Neutral	AU$2.18B	-0.36	-14.39%	10.63%	7.38%	-60.19%
CEBTF	―	$235.63M	65.56	-6.53%	―	―	―
CHOWF	―	$727.40M	6.96	6.25%	13.84%	―	―
CJEWF	―	$16.97B	22.04	22.73%	4.05%	―	―
EPRJF	―	$406.79M	12.24	4.99%	31.85%	―	―
LKFLF	―	$1.59B	11.23	8.44%	3.00%	―	―

King Fook Holdings Limited Corporate Events

King Fook Holdings Limited Announces Director Roles and Governance Structure

King Fook Holdings Limited has announced the roles and responsibilities of its directors, highlighting the strategic and operational oversight provided by both executive and non-executive members. This announcement underscores the company’s commitment to strong governance and strategic planning, with directors involved in various committees that focus on business strategy, environmental and social governance, and audit and remuneration processes.

King Fook Holdings Appoints New Nomination Committee Member

King Fook Holdings Limited has announced the appointment of Ms. Hou Tan Tan Danielle as a new member of its nomination committee, effective from April 1, 2025. This strategic appointment is expected to enhance the governance and decision-making processes within the company, potentially impacting its operational efficiency and stakeholder confidence.

King Fook Holdings Announces New Tenancy Terms

King Fook Holdings Limited has announced a supplemental disclosure regarding a tenancy agreement. The company will pay a monthly rent of $1,236,000 in advance for the tenancy, with the payment schedule set for the first day of each month. This transaction is significant as it involves considerable financial commitment and could impact the company’s operational budget and financial planning.

King Fook Holdings Secures New Tenancy for Central Hong Kong Outlet

King Fook Holdings Limited has entered into a new tenancy agreement for one of its retail outlets in Central, Hong Kong, constituting a discloseable transaction under the Listing Rules. The two-year lease, valued at approximately $29,664,000, is considered fair and beneficial for shareholders, reflecting the company’s strategic focus on maintaining its retail presence in prime locations. Another existing lease for a different property in the same building is also noted, reinforcing the company’s commitment to its high-end retail segment.