Four Seas Mercantile Holdings Limited (0374) AI Stock Analysis

• Market Cap: HK$969.25M
• Dividend Yield: 3.73%
• Average Volume (3M): 2.00K
• Price to Earnings (P/E): 96.2
• Beta (1Y): 0.02
• Revenue Growth: -7.00%
• EPS Growth: -70.95%
• Country: HK
• Employees: 2,700
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): -0.03
• Shares Outstanding: 380,099,640
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 2,003
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: HK$2.50 ▼(-1.96% Downside)

The overall stock score is primarily impacted by financial performance challenges, including declining revenues and profitability, increased leverage, and cash flow issues. Technical analysis shows mild upward momentum, but valuation concerns arise due to a high P/E ratio. The dividend yield provides some support to the score.

Four Seas Mercantile Holdings Limited Business Overview & Revenue Model

Company Description

Four Seas Mercantile Holdings Limited (0374) is a prominent investment holding company based in Hong Kong, primarily engaged in the food and beverage sector. The company operates through various subsidiaries, focusing on the manufacturing, distribution, and retailing of a diverse range of food products, including frozen seafood, confectionery, and canned goods. Additionally, Four Seas Mercantile has expanded its portfolio to include logistics and supply chain management services, which support its core food-related operations.

How the Company Makes Money

Four Seas Mercantile Holdings Limited generates revenue through multiple streams that include the direct sale of food and beverage products to retailers and consumers, wholesale distribution to food service operators, and export of goods to international markets. The company benefits from economies of scale in its manufacturing processes, which allows it to maintain competitive pricing. Significant partnerships with major retailers and food distributors enhance its market reach and visibility. Additionally, the logistics services provided by the company enable it to optimize supply chain efficiency, further increasing profitability. Seasonal and promotional sales, along with a focus on product innovation, contribute to its financial performance.

Four Seas Mercantile Holdings Limited Financial Statement Overview

Summary

Four Seas Mercantile Holdings Limited is facing financial challenges, with declining revenues and profitability. The balance sheet shows increased leverage, which could be risky if not managed effectively. Cash flow issues are evident, with negative free cash flow growth and low conversion of earnings to cash. The company needs to address these issues to improve its financial health.

Income Statement

The company has experienced declining revenue over the past few years, with a significant drop in the most recent year. Gross profit margin has been relatively stable, but net profit margin is very low, indicating challenges in converting revenue into profit. EBIT and EBITDA margins are modest, reflecting limited operational efficiency.

Balance Sheet

The debt-to-equity ratio has increased, indicating higher leverage, which could pose a risk if not managed properly. Return on equity is low, suggesting limited profitability from shareholders' investments. The equity ratio is stable, showing a balanced asset structure.

Cash Flow

The company has faced a significant decline in free cash flow, with negative growth in the most recent period. Operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. Free cash flow to net income ratio is negative, highlighting cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.66B	3.63B	3.90B	4.15B	4.73B	4.58B
Gross Profit	865.88M	868.28M	912.19M	879.31M	937.56M	878.50M
EBITDA	218.18M	297.95M	297.55M	255.74M	306.07M	310.33M
Net Income	24.85M	10.16M	34.66M	40.73M	12.63M	30.13M
Balance Sheet
Total Assets	2.94B	3.17B	2.93B	3.24B	3.35B	3.56B
Cash, Cash Equivalents and Short-Term Investments	649.24M	715.59M	684.55M	787.24M	658.06M	616.41M
Total Debt	1.19B	1.47B	1.15B	1.36B	1.33B	1.50B
Total Liabilities	1.69B	1.95B	1.68B	1.94B	1.98B	2.18B
Stockholders Equity	1.23B	1.20B	1.22B	1.28B	1.34B	1.38B
Cash Flow
Free Cash Flow	203.05M	-102.20M	283.31M	253.03M	265.95M	120.32M
Operating Cash Flow	256.56M	168.91M	338.07M	299.25M	323.77M	188.80M
Investing Cash Flow	-129.81M	-277.65M	-66.76M	-45.33M	-43.21M	306.28M
Financing Cash Flow	-183.30M	115.11M	-363.76M	-109.78M	-244.97M	-434.56M

Four Seas Mercantile Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.55
• 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:0374, the sentiment is Positive. The current price of 2.55 is above the 20-day moving average (MA) of 2.55, above the 50-day MA of 2.53, and above the 200-day MA of 2.52, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.31 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0374.

Four Seas Mercantile Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1587	―	HK$421.60M	9.20	8.56%	3.63%	3.24%	47.81%
8413	―	HK$125.50M	120.00	1.07%	―	3.44%	-43.75%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0677	―	HK$594.09M	29.49	-1.12%	6.57%	0.32%	-113.51%
1705	―	HK$160.00M	8.99	11.39%	12.50%	-3.08%	-47.02%
0374	―	HK$969.25M	96.23	0.84%	3.73%	-7.00%	-70.95%
8491	―	HK$169.41M	-7.83	-14.15%	―	-2.25%	58.33%

Four Seas Mercantile Holdings Limited Corporate Events

Four Seas Mercantile Approves Key Resolutions at AGM

Four Seas Mercantile Holdings Limited successfully passed all proposed resolutions at its Annual General Meeting held on August 29, 2025. Key resolutions included the approval of the audited financial statements, the declaration of a final dividend, re-election of directors, and the re-appointment of Ernst & Young as auditors. The resolutions received overwhelming support from shareholders, indicating strong confidence in the company’s governance and strategic direction.

The most recent analyst rating on (HK:0374) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Four Seas Mercantile Holdings Limited stock, see the HK:0374 Stock Forecast page.

Four Seas Mercantile Holdings Limited Announces AGM and Key Resolutions

Four Seas Mercantile Holdings Limited has announced its Annual General Meeting scheduled for August 29, 2025, where key agenda items include the approval of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. The company also seeks shareholder approval for a mandate to buy back up to 10% of its issued shares, which could impact its stock market performance and shareholder value.