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Alco Holdings (HK:0328)
:0328
Hong Kong Market

Alco Holdings (0328) AI Stock Analysis

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HK:0328

Alco Holdings

(0328)

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Neutral 47 (OpenAI - 5.2)
Rating:47Neutral
Price Target:
HK$3.00
▲(3.45% Upside)
The score is held down primarily by very weak financial performance (declining revenue, large losses, negative equity, and negative operating/free cash flow), which outweighs the moderately constructive technical momentum. Valuation is also unfavorable due to loss-making earnings (negative P/E) and no stated dividend yield.
Positive Factors
Stable B2B manufacturing model
A B2B manufacturing/export model supplying international retailers and brands offers durable revenue visibility from bulk orders and contractual relationships. Over 2–6 months this supports predictable production planning, steadier order flows, and mitigates retail-channel volatility versus spot retail sales.
Strategic partnerships and economies of scale
Long-standing partnerships with global brands provide preferential access to orders and allow the company to spread fixed manufacturing costs. Economies of scale can sustainably improve unit economics and bargaining power with suppliers, supporting margin recovery if volumes stabilize.
Diversified income via real estate investments
Owning and leasing properties creates a non-cyclical income stream that diversifies earnings away from apparel cycles. Rental cash flow and underlying property assets can provide downside protection and liquidity options over the medium term, bolstering overall business resilience.
Negative Factors
Steep revenue decline and weak margins
Sustained revenue contraction combined with very low gross margins indicates structural pricing pressure or cost inefficiencies in core operations. These factors erode competitive position and make profitable scale difficult, posing a multi-month risk to recovery without structural change.
Negative equity and solvency concerns
Negative shareholders' equity reflects accumulated losses and impairs financial flexibility. This condition restricts access to traditional financing, raises creditor scrutiny, and increases the risk of covenant breaches or restructuring—material solvency issues that persist absent recapitalization.
Negative operating and free cash flow
Persistent negative operating cash flow shows the business fails to convert operations into cash, necessitating external funding. Given the weak balance sheet and negative equity, reliance on outside financing is risky and limits the company's ability to invest in turnaround initiatives over the medium term.

Alco Holdings (0328) vs. iShares MSCI Hong Kong ETF (EWH)

Alco Holdings Business Overview & Revenue Model

Company DescriptionAlco Holdings Limited, an investment holding company, designs, manufactures, and sells consumer electronic products in North America, Asia, Europe, and internationally. It operates in two segments, AV Products and Notebook Products. The company offers audio, video, and tablet products. It also provides commercial notebook and personal computers. In addition, the company is involved in the property holding, property investment, and software development activities; and trade of AV and notebook products. Alco Holdings Limited was founded in 1968 and is headquartered in Sha Tin, Hong Kong.
How the Company Makes MoneyAlco Holdings generates revenue primarily through the manufacturing and export of garments, which constitutes a significant portion of its income. The company operates on a business-to-business model, supplying products to various international retailers and brands, thus benefiting from bulk orders and long-term contracts. Additionally, Alco Holdings has income streams from its real estate investments, where it leases properties and earns rental income. Strategic partnerships with global clothing brands and retailers further enhance its revenue, allowing the company to leverage economies of scale and optimize production costs.

Alco Holdings Financial Statement Overview

Summary
Alco Holdings faces significant financial challenges across all verticals. The income statement shows declining revenues and persistent losses, the balance sheet highlights financial instability with negative equity, and the cash flow statement indicates liquidity issues. The company needs to address these critical areas to improve its financial health and sustainability.
Income Statement
Alco Holdings has experienced significant revenue decline over the years, with a negative revenue growth rate of -11.66% in the latest period. The company has consistently reported negative net profit margins, with the most recent being -64.71%. This indicates substantial losses relative to revenue. The gross profit margin is also low at 5.16%, reflecting challenges in cost management or pricing strategy. Overall, the income statement reflects a struggling financial performance with declining revenues and persistent losses.
Balance Sheet
The balance sheet reveals a concerning financial structure with negative stockholders' equity, resulting in an undefined debt-to-equity ratio. The return on equity is positive due to the negative equity, but this is misleading as it reflects significant losses. The equity ratio is negative, indicating that liabilities exceed assets, which is a critical financial risk. Overall, the balance sheet highlights financial instability and high leverage, posing significant risks to the company's solvency.
Cash Flow
Cash flow analysis shows negative operating and free cash flows, indicating that the company is not generating sufficient cash from its operations. The free cash flow growth rate is positive at 45.34%, but this is due to a smaller negative cash flow compared to the previous period. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. Overall, the cash flow statement reflects liquidity challenges and operational inefficiencies.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue99.31M99.31M148.42M89.32M542.41M1.28B
Gross Profit5.12M5.12M8.86M-10.95M-111.81M-72.46M
EBITDA-51.78M-48.11M13.26M-78.38M-313.55M-324.61M
Net Income-64.27M-64.27M600.69M-502.19M-594.36M-360.46M
Balance Sheet
Total Assets179.49M179.49M182.41M283.29M833.78M1.36B
Cash, Cash Equivalents and Short-Term Investments10.06M10.06M23.86M2.39M10.20M98.15M
Total Debt97.58M97.58M85.58M156.31M750.98M621.38M
Total Liabilities244.19M244.19M269.94M1.08B1.11B1.03B
Stockholders Equity-64.04M-64.04M-72.58M-788.65M-272.27M330.82M
Cash Flow
Free Cash Flow-98.49M-98.49M-69.47M-1.14M-169.45M-265.79M
Operating Cash Flow-96.56M-96.56M-69.47M-157.00K-138.98M-234.83M
Investing Cash Flow-2.05M-2.05M3.65M10.97M-29.25M6.02M
Financing Cash Flow78.63M78.63M96.07M-17.11M82.93M219.06M

Alco Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.90
Price Trends
50DMA
2.72
Positive
100DMA
3.75
Negative
200DMA
2.60
Positive
Market Momentum
MACD
0.05
Negative
RSI
63.06
Neutral
STOCH
70.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0328, the sentiment is Positive. The current price of 2.9 is above the 20-day moving average (MA) of 2.70, above the 50-day MA of 2.72, and above the 200-day MA of 2.60, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 63.06 is Neutral, neither overbought nor oversold. The STOCH value of 70.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0328.

Alco Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
HK$301.88M9.314.09%7.62%6.84%-0.96%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
58
Neutral
HK$1.51B
54
Neutral
HK$276.80M-4.96-11.41%8.70%-16.95%-461.16%
47
Neutral
HK$185.58M-1.63-0.76%93.44%
45
Neutral
HK$598.10M-0.99-16.40%4.61%0.48%-86.42%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0328
Alco Holdings
3.15
1.61
104.55%
HK:0099
Wong's International Holdings
1.25
0.11
9.65%
HK:0167
IDT International Limited
3.50
1.82
108.33%
HK:0927
Fujikon Industrial Holdings Limited
0.65
0.03
4.00%
HK:0176
Superactive Group Company Limited
0.01
>-0.01
-31.58%
HK:0912
Suga International Holdings Limited
1.06
-0.13
-10.92%

Alco Holdings Corporate Events

Alco Shareholders Unanimously Approve Disposal Deal at Special General Meeting
Dec 31, 2025

Alco Holdings Limited has announced that shareholders approved, by poll, an ordinary resolution at a special general meeting on 31 December 2025 to proceed with a disposal under a sale and purchase agreement between a vendor and a purchaser, with all votes cast in favour and none against. The unanimous approval, with all 57,278,430 issued shares entitled to vote and no shareholders required to abstain, clears the way for the company to complete the disposal transaction, potentially reshaping its asset base and business portfolio, and underscores strong shareholder support for the board’s strategic direction and governance process.

The most recent analyst rating on (HK:0328) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Alco Holdings stock, see the HK:0328 Stock Forecast page.

Alco Holdings to Sell Sha Tin Property for HK$90 Million
Dec 10, 2025

Alco Holdings Limited has announced a special general meeting to approve the sale of certain property assets located in Metropole Square, Sha Tin, to The Hang Seng University of Hong Kong for HK$90 million. This transaction is part of the company’s strategic asset management and could potentially impact its financial standing and stakeholder interests.

The most recent analyst rating on (HK:0328) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Alco Holdings stock, see the HK:0328 Stock Forecast page.

Alco Holdings Delays Circular Dispatch for Major Transaction
Dec 9, 2025

Alco Holdings Limited has announced a delay in the dispatch of a circular related to a major transaction involving a disposal. The circular, which includes details of the disposal, financial information, and a property valuation report, was initially expected to be sent to shareholders by December 9, 2025, but will now be postponed to on or before December 10, 2025, due to the need for additional preparation time.

The most recent analyst rating on (HK:0328) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Alco Holdings stock, see the HK:0328 Stock Forecast page.

Alco Holdings Delays Circular Dispatch for Major Transaction
Dec 5, 2025

Alco Holdings Limited has announced a delay in the dispatch of a circular related to a major transaction involving the disposal of certain assets. Initially expected by December 5, 2025, the circular will now be dispatched by December 9, 2025, due to the need for additional time to finalize information. This delay may impact the timeline for shareholder review and approval processes, potentially affecting the company’s operational plans and stakeholder expectations.

The most recent analyst rating on (HK:0328) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Alco Holdings stock, see the HK:0328 Stock Forecast page.

Alco Holdings Reports Improved Interim Financial Results Amid Revenue Growth
Nov 30, 2025

Alco Holdings Limited reported its interim results for the six months ending September 30, 2025, showing a revenue increase to HK$62 million from HK$50 million in the previous year. Despite the revenue growth, the company recorded a loss of HK$19 million, an improvement from a HK$24 million loss in the same period last year. The results indicate a challenging operating environment, but the reduction in losses suggests potential operational improvements.

The most recent analyst rating on (HK:0328) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Alco Holdings stock, see the HK:0328 Stock Forecast page.

Alco Holdings Delays Circular Dispatch for Major Transaction
Nov 30, 2025

Alco Holdings Limited has announced a delay in the dispatch of a circular related to a major transaction involving the disposal of certain assets. The circular, which includes financial details and an independent property valuation, was initially expected to be sent to shareholders by November 30, 2025, but will now be postponed to on or before December 5, 2025. This delay is due to the additional time required to finalize certain information. The postponement may impact the company’s timeline for completing the transaction and could influence shareholder decisions.

The most recent analyst rating on (HK:0328) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Alco Holdings stock, see the HK:0328 Stock Forecast page.

Alco Holdings Announces Leadership Change Following Executive’s Passing
Nov 25, 2025

Alco Holdings Limited announced the passing of its executive director and authorised representative, Mr. Ho Chak Yu, on November 25, 2025. The board expressed deep appreciation for Mr. Ho’s leadership and contributions to the company. In light of this, Mr. Chu Hoi Kan, an independent non-executive director, has been appointed as the new authorised representative, ensuring continuity in the company’s governance and operations.

The most recent analyst rating on (HK:0328) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Alco Holdings stock, see the HK:0328 Stock Forecast page.

Alco Holdings Announces Resignation of Key Directors
Nov 25, 2025

Alco Holdings Limited announced the resignation of three directors, Mr. Bian Wenbin, Mr. Xu Liao, and Mr. Liu Liheng, effective from November 25, 2025, as they wish to focus on other work commitments. The company expressed gratitude for their contributions and confirmed there are no disagreements or issues that need to be addressed with shareholders or the Stock Exchange.

The most recent analyst rating on (HK:0328) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Alco Holdings stock, see the HK:0328 Stock Forecast page.

Alco Holdings Announces Board Composition and Roles
Nov 25, 2025

Alco Holdings Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This update, effective as of November 25, 2025, includes details on the executive, non-executive, and independent non-executive directors, as well as their involvement in the company’s audit, remuneration, and nomination committees. This announcement is significant for stakeholders as it reflects the company’s governance structure and strategic leadership, potentially impacting its operational and market strategies.

The most recent analyst rating on (HK:0328) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Alco Holdings stock, see the HK:0328 Stock Forecast page.

Alco Holdings Completes Successful Rights Issue, Raising HK$143.938 Million
Nov 21, 2025

Alco Holdings Limited, a company incorporated in Bermuda, announced the results of its Rights Issue, offering four Rights Shares for every one Adjusted Share at a subscription price of HK$3.24 per Rights Share. The Rights Issue was fully subscribed, raising approximately HK$148.465 million in gross proceeds, with net proceeds of HK$143.938 million. The company plans to use these funds to repay bank borrowings and creditors, with the expectation of full utilization by March 2026. This successful capital raising effort is expected to strengthen Alco Holdings’ financial position and support its ongoing operations.

The most recent analyst rating on (HK:0328) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Alco Holdings stock, see the HK:0328 Stock Forecast page.

Alco Holdings Announces Major Property Disposal in Hong Kong
Nov 18, 2025

Alco Holdings, through its subsidiary WINDOM LIMITED, has entered into a major transaction involving the sale of a property located in Sha Tin, Hong Kong, for HK$90,000,000. This disposal is classified as a major transaction under the Hong Kong Stock Exchange Listing Rules, requiring shareholder approval. The transaction is expected to impact the company’s financial standing and market position, with a special general meeting (SGM) scheduled for shareholder approval. The property, acquired in 2017, includes office premises and parking spaces, and the sale is structured with a deposit and balance payment upon completion.

The most recent analyst rating on (HK:0328) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Alco Holdings stock, see the HK:0328 Stock Forecast page.

Alco Holdings’ Rights Issue Undersubscribed; Plans for Unsubscribed Shares Announced
Oct 31, 2025

Alco Holdings Limited announced the results of its Rights Issue, which offered 45,822,744 Rights Shares at HK$3.24 per share. The Rights Issue was significantly undersubscribed, with only 16.36% of the shares accepted, leaving 38,326,202 shares unsubscribed. The company plans to place these unsubscribed shares with independent Placees through a Placing Agreement. The outcome of this arrangement will impact the company’s financial position and shareholder value, as any premium gained will be distributed to certain shareholders. Shareholders and investors are advised to exercise caution due to the conditional nature of the Rights Issue and Placing.

The most recent analyst rating on (HK:0328) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Alco Holdings stock, see the HK:0328 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 08, 2026