Alco Holdings (0328) AI Stock Analysis

• Market Cap: HK$45.25M
• Dividend Yield: N/A
• Average Volume (3M): 565.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• 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$0.75 ▼(-74.10% 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

OEM/ODM design-to-manufacture capability

Owning end-to-end OEM/ODM engineering and manufacturing capabilities creates durable customer stickiness and recurring revenue from contract programs. Design-to-manufacture skills let Alco capture engineering fees, support product lifecycle work, and differentiate on service versus pure contract assemblers.

Product specialization in audio accessories

Specialization in headphones/earphones and related accessories supports repeatable manufacturing processes, supplier knowledge and tooling efficiencies. A focused product mix enables operational learning curves and potential margin improvement from scale and process optimization over multiple production cycles.

Improving free cash flow trend

A positive free cash flow growth rate (despite absolute negative FCF) signals a structural improvement in cash conversion and working-capital management. Sustained improvement can reduce liquidity stress, lower refinancing risk, and provide capacity for stabilizing operations or funding critical restructuring.

Negative Factors

Negative shareholders' equity

Negative equity is a fundamental solvency concern: it constrains access to external finance, risks covenant breaches, and limits strategic flexibility. Over months, this elevates insolvency risk and forces management to seek capital injections or asset sales, distracting from core operations.

Large persistent operating losses

Consistent, deep operating losses erode retained capital and prevent reinvestment in product development or manufacturing upgrades. Over a multi-month horizon, ongoing negative margins increase reliance on external funding, reduce bargaining power with suppliers, and undermine long-term competitiveness.

Declining revenue and weak gross margin

Falling top-line combined with a very thin gross margin indicates pricing pressure or cost inefficiency that limits operating leverage. Structurally, this reduces the firm's ability to scale profitably, exacerbates cash burn, and makes margin recovery difficult without material product mix or cost-structure changes.

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 makes money mainly by supplying consumer electronics and electrical appliances to customers under OEM/ODM arrangements. Revenue is generated from (i) manufacturing and sale of finished goods (primarily audio products such as headphones/earphones and related consumer electronics) where customers place purchase orders and the company fulfills them using its production capacity and supply chain; and (ii) providing product development, engineering, and design-to-manufacture services that are embedded in, or billed alongside, contracted production programs. Earnings are driven by shipment volumes and product mix, and profitability depends on the spread between contract selling prices and the company’s costs (materials/components, labor, overhead, logistics), as well as manufacturing efficiency and yield. Any significant partnerships, major customer concentrations, specific brand/customer relationships, or segment revenue breakdowns are not available in the information provided here and are therefore null.

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 0.79, above the 50-day MA of 1.86, and above the 200-day MA of 2.71, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 37.78 is Neutral, neither overbought nor oversold. The STOCH value of 62.58 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$304.73M	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$286.16M	-22.59	-11.38%	8.70%	-16.95%	-461.16%
0099	45 Neutral	HK$636.38M	-0.92	-17.57%	4.61%	0.48%	-86.42%
0167	45 Neutral	HK$4.06B	3.98	-177.99%	―	―	―
0328	40 Underperform	HK$45.25M	-10.94	80.51%	―	-0.76%	93.44%

Alco Holdings Corporate Events

Alco Holdings Weighs Possible Fundraising Plan

Alco Holdings Limited has announced that its board is considering a potential fundraising exercise, though key terms and structure have not yet been determined. The move signals that the Hong Kong-listed electronics manufacturer may be looking to bolster its capital base, potentially to support operations, strengthen liquidity or pursue future strategic initiatives, with details to be clarified once plans are finalized.

The most recent analyst rating on (HK:0328) stock is a Sell with a HK$0.64 price target. To see the full list of analyst forecasts on Alco Holdings stock, see the HK:0328 Stock Forecast page.

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.