Alco Holdings (0328) AI Stock Analysis

• Market Cap: HK$66.44M
• Dividend Yield: N/A
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -33.09%
• EPS Growth: -107.58%
• Country: HK
• Employees: 46
• Sector: Technology
• Sector Strength: 86
• Industry: Consumer Electronics
• EPS (TTM): -0.37
• Shares Outstanding: 114,556,860
• 10 Day Avg. Volume: 4,662,367
• 30 Day Avg. Volume: 2,154,910
• 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: HK$0.50
• Price Target Upside: -15.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: HK$0.50 ▼(-15.25% Downside)

Alco Holdings' overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, persistent losses, and liquidity issues. While there is some short-term bullish momentum in technical analysis, the long-term outlook remains bearish. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score, resulting in an overall low stock score.

Alco Holdings Business Overview & Revenue Model

Company Description

Alco Holdings Limited (stock code: 0328) is a Hong Kong-based company primarily engaged in the manufacturing and trading of various types of packaging materials and products. The company operates in the packaging sector and specializes in the production of plastic and paper packaging solutions. Its core product offerings include flexible packaging, labels, and other related packaging materials, catering to a diverse array of industries such as food and beverage, healthcare, and consumer goods.

How the Company Makes Money

Alco Holdings generates revenue primarily through the sale of its packaging products to a broad customer base, including manufacturers and retailers in various sectors. The company's revenue model is based on the direct sale of these products, which are often customized to meet specific client needs. Key revenue streams include bulk orders from large clients, as well as smaller orders from various businesses requiring specialized packaging solutions. Additionally, Alco may benefit from partnerships with suppliers and distributors that enhance its market reach. The company's ability to innovate and adapt to changing market demands, along with its focus on quality and competitive pricing, plays a significant role in driving its earnings.

Alco Holdings Financial Statement Overview

Summary

Alco Holdings faces significant financial challenges. 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. These factors collectively reflect a struggling financial performance.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	112.43M	99.31M	148.42M	89.32M	542.41M	1.28B
Gross Profit	8.95M	5.12M	8.86M	-10.95M	-111.81M	-72.46M
EBITDA	-582.95M	-48.11M	13.26M	-83.52M	-313.55M	-324.61M
Net Income	-595.36M	-64.27M	600.69M	-502.19M	-594.36M	-360.46M
Balance Sheet
Total Assets	178.38M	179.49M	182.41M	283.29M	833.78M	1.36B
Cash, Cash Equivalents and Short-Term Investments	9.08M	10.06M	23.86M	2.39M	10.20M	98.15M
Total Debt	85.58M	97.58M	85.58M	156.31M	750.98M	621.38M
Total Liabilities	257.81M	244.19M	269.94M	1.08B	1.11B	1.03B
Stockholders Equity	-78.78M	-64.04M	-72.58M	-788.65M	-272.27M	330.82M
Cash Flow
Free Cash Flow	-67.76M	-98.49M	-69.47M	-1.14M	-169.45M	-265.79M
Operating Cash Flow	-67.76M	-96.56M	-69.47M	-157.00K	-138.98M	-234.83M
Investing Cash Flow	-120.00K	-2.05M	3.65M	10.97M	-29.25M	6.02M
Financing Cash Flow	2.14M	78.63M	96.07M	-17.11M	82.93M	219.06M

Alco Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: 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 0.59 is above the 20-day moving average (MA) of 0.43, above the 50-day MA of 0.38, and below the 200-day MA of 1.08, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 73.08 is Negative, neither overbought nor oversold. The STOCH value of 69.87 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0912	73 Outperform	HK$350.29M	9.85	4.39%	9.76%	-0.88%	7.28%
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%
0328	47 Neutral	HK$66.44M	―		―	-33.09%	-107.58%
0099	44 Neutral	HK$693.80M	―	-20.96%	3.97%	-16.35%	-648.31%
0167	40 Neutral	HK$407.33M	―		―	―	―
FUK	―	€32.93M	13.84	-6.99%	―	―	―
UPZ	―		―		―	―	―

Alco Holdings Corporate Events

Alco Holdings Announces 2025 Annual General Meeting

Alco Holdings Limited has announced its upcoming Annual General Meeting (AGM) to be held on August 29, 2025, in Hong Kong. The meeting will address several key agenda items, including the consideration of the company’s audited financial statements, the re-election of directors, and the re-appointment of the company’s auditor. Additionally, a resolution will be proposed to authorize the directors to allot and issue additional shares, with specific limitations on the aggregate nominal amount of share capital. This AGM is significant for stakeholders as it will determine the company’s governance and financial strategies for the coming year.

Alco Holdings Delays Circular Dispatch for Capital Reorganisation

Alco Holdings Limited has announced a delay in the dispatch of its Circular related to a proposed capital reorganisation and rights issue, initially scheduled for August 1, 2025, now postponed to August 25, 2025. This delay impacts the timeline for the capital reorganisation and rights issue, which aims to offer four rights shares for every one adjusted share held, potentially affecting the company’s financial strategy and shareholder value.

Alco Holdings Announces New Executive and Non-Executive Director Appointments

Alco Holdings Limited has announced the appointment of Mr. Zheng Yuxing as an executive director and Mr. Xu Liao as a non-executive director, effective from July 17, 2025. Mr. Zheng brings over 30 years of experience in business management within the electronics sector, while Mr. Xu contributes 18 years of experience in sales and management in the telecommunication industry. These appointments are expected to strengthen the company’s leadership and enhance its operations in the electronics and telecommunications sectors.

Alco Holdings Announces Board Composition and Roles

Alco Holdings Limited, a company incorporated in Bermuda, has announced the composition of its board of directors and their roles within the company. The board includes both executive and non-executive directors, as well as independent non-executive directors, who are assigned to various committees such as the audit, remuneration, and nomination committees. This announcement provides clarity on the governance structure of Alco Holdings, which is crucial for stakeholders to understand the leadership and decision-making framework within the company.

Alco Holdings Announces Capital Reorganization and Rights Issue

Alco Holdings has announced a proposed capital reorganization and rights issue. The capital reorganization involves consolidating and reducing the company’s share capital, while the rights issue aims to raise approximately HK$148.465 million by issuing new rights shares. This strategic move is intended to address accumulated losses and improve the company’s financial position, with implications for shareholders and potential investors as the reorganization is conditional upon certain approvals.

Alco Holdings Reports Significant Revenue Decline and Loss for 2025

Alco Holdings Limited reported its audited annual results for the year ending March 31, 2025, revealing a significant decline in revenue from HK$148 million to HK$99 million compared to the previous year. The company also experienced a substantial loss of HK$64 million from continuing operations, a stark contrast to the previous year’s profit of HK$6 million. This downturn in financial performance highlights challenges in the company’s operations, possibly impacting its market positioning and stakeholder confidence.

Alco Holdings Issues Profit Warning Amidst Competitive Pressures

Alco Holdings Limited has issued a profit warning, indicating an expected loss of HKD60 million to HKD70 million for the financial year ending March 31, 2025. This marks a significant downturn from the previous year’s profit of HKD592 million, primarily due to the absence of a one-off gain and decreased revenue and gross profit amid intense price competition. The results are still subject to internal review and confirmation, with a final announcement expected by June 30, 2025.

Alco Holdings Announces Board Changes with New Non-Executive Director Appointment

Alco Holdings Limited has announced the resignation of Mr. Yang Min from his position as a non-executive director due to personal and business commitments. The company expressed gratitude for his contributions. Concurrently, Alco Holdings has appointed Mr. Bian Wenbin as a new non-executive director, effective June 20, 2025. Mr. Bian brings over 15 years of experience in finance and insurance, having held various leadership roles in prominent insurance companies in China. His appointment is expected to enhance the company’s strategic direction and operations, given his extensive background in integrating traditional financial services with digital tools.

Alco Holdings Announces Board Composition and Committee Roles

Alco Holdings Limited has announced the composition of its board of directors, highlighting the roles and functions of its executive, non-executive, and independent non-executive directors. The announcement details the membership of the board committees, including the audit, remuneration, and nomination committees, which are crucial for the company’s governance and operational oversight.

Alco Holdings Schedules Board Meeting for Financial Results and Dividend Decision

Alco Holdings Limited has announced that its board of directors will convene on June 30, 2025, to approve the audited financial results for the fiscal year ending March 31, 2025, and to consider the declaration of a final dividend. This meeting is significant as it will provide insights into the company’s financial health and potential returns for investors, impacting its market positioning and stakeholder interests.

Alco Holdings Implements Financial Measures to Address Going Concern Disclaimer

Alco Holdings Limited has announced updates regarding its efforts to address a disclaimer of opinion related to its going concern status as outlined in its 2024 Annual Report. The company has implemented several measures to alleviate liquidity pressures, including negotiating debt restructuring with banks, maintaining communication with creditors, and completing a share placement to raise approximately HK$65.2 million. These steps aim to improve the company’s financial stability and reassure stakeholders of its commitment to resolving underlying financial issues.