Alco Holdings (0328) AI Stock Analysis

• Market Cap: HK$42.96M
• Dividend Yield: N/A
• Average Volume (3M): 565.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: -0.76%
• EPS Growth: 93.44%
• Country: HK
• Employees: 46
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -0.17
• Shares Outstanding: 57,278,430
• 10 Day Avg. Volume: 293,387
• 30 Day Avg. Volume: 565,965
• PEG Ratio: <0.01
• Price to Book (P/B): -0.40
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -0.26
• 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: 40 Underperform
• Price Target: HK$0.68 ▼(-76.41% Downside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is driven down primarily by very weak financial performance (declining revenue, heavy losses, negative equity, and negative operating/free cash flow). Technicals are also bearish with price well below major moving averages and a negative MACD, though oversold RSI/Stoch modestly temper the downside. Valuation is difficult to support due to negative earnings and no dividend yield data.

Positive Factors

Business model strength (OEM/ODM + services)

Alco's OEM/ODM model combined with embedded product development and engineering services creates recurring contract work and higher switching costs. Durable client relationships and design-to-manufacture capabilities can sustain revenue streams and support margin recovery if order volumes stabilize.

Product specialization (audio focus)

A concentrated focus on audio products and related accessories builds specialized manufacturing know-how and tooling, letting Alco serve brand owners requiring quality and speed. Specialization supports repeat business, potential pricing premium for design expertise, and operational efficiencies over time.

Improving free cash flow trend

Although FCF is still negative, a materially positive free cash flow growth rate indicates a narrowing cash burn versus prior periods. If sustained, this trend can reduce liquidity strain, improve funding options and enable gradual repair of the balance sheet without immediate structural changes.

Negative Factors

Declining revenue and weak margins

Falling sales and very low gross margins show the company struggles with pricing power, cost control or adverse product mix. Persistent large net losses erode capital and make profitable scale elusive; without sustained revenue recovery, margins are unlikely to normalize.

Negative equity and solvency risk

Negative shareholders' equity signals that accumulated losses exceed assets, limiting financial flexibility. This structural weakness raises refinancing and covenant risks, can constrain supplier credit, and makes the company more vulnerable to shocks or unexpected cash needs.

Negative operating cash flow

Operating activities are not producing positive cash, forcing reliance on external funding or asset sales. Continued negative cash conversion undermines investment in manufacturing, R&D and working capital, increasing the probability of further operational disruption or enforced restructuring.

Alco Holdings Business Overview & Revenue Model

Company Description

Alco 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 Money

Alco 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

Financial statements indicate severe weakness: declining revenue (-11.66%), large and persistent losses (net margin -64.71%), very low gross margin (5.16%), negative equity (liabilities exceed assets), and negative operating/free cash flow.

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.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	99.31M	148.42M	89.32M	542.41M	1.28B
Gross Profit	5.12M	8.86M	-10.95M	-111.81M	-72.46M
EBITDA	-48.11M	13.26M	-78.38M	-313.55M	-324.61M
Net Income	-64.27M	600.69M	-502.19M	-594.36M	-360.46M
Balance Sheet
Total Assets	179.49M	182.41M	283.29M	833.78M	1.36B
Cash, Cash Equivalents and Short-Term Investments	10.06M	23.86M	2.39M	10.20M	98.15M
Total Debt	97.58M	85.58M	156.31M	750.98M	621.38M
Total Liabilities	244.19M	269.94M	1.08B	1.11B	1.03B
Stockholders Equity	-64.04M	-72.58M	-788.65M	-272.27M	330.82M
Cash Flow
Free Cash Flow	-98.49M	-69.47M	-1.14M	-169.45M	-265.79M
Operating Cash Flow	-96.56M	-69.47M	-157.00K	-138.98M	-234.83M
Investing Cash Flow	-2.05M	3.65M	10.97M	-29.25M	6.02M
Financing Cash Flow	78.63M	96.07M	-17.11M	82.93M	219.06M

Alco Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0328, the sentiment is Negative. The current price of 2.9 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 2.06, and above the 200-day MA of 2.73, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 31.80 is Neutral, neither overbought nor oversold. The STOCH value of 39.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0328.

Alco Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0912	66 Neutral	HK$296.18M	5.00	4.11%	7.62%	6.84%	-0.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0927	54 Neutral	HK$265.72M	-22.59	-11.38%	8.70%	-16.95%	-461.16%
0099	45 Neutral	HK$636.38M	-0.92	-16.40%	4.61%	0.48%	-86.42%
0167	45 Neutral	HK$4.10B	3.98	―	―	―	―
0328	40 Underperform	HK$42.96M	-10.94	―	―	-0.76%	93.44%

Alco Holdings Corporate Events

Alco Holdings Relocates Hong Kong Head Office to Tsuen Wan

Alco Holdings Limited has relocated its head office and principal place of business in Hong Kong to Unit 6, 9/F, Wing Fung Industrial Building, 40–50 Sha Tsui Road, Tsuen Wan, New Territories, effective 11 February 2026. The move, which leaves the company’s telephone and fax numbers unchanged, signals an operational shift in its Hong Kong footprint but does not alter existing communication channels or board composition, which remains led by Co-Chairmen Liao Liping and Tian Yi alongside a mix of executive and independent non-executive directors.

The most recent analyst rating on (HK:0328) stock is a Sell with a HK$0.73 price target. To see the full list of analyst forecasts on Alco Holdings stock, see the HK:0328 Stock Forecast page.

Alco Shareholders Unanimously Approve Disposal Deal at Special General Meeting

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

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.