Four Seas Mercantile Holdings Limited (0374) AI Stock Analysis

• Market Cap: HK$1.03B
• Dividend Yield: 3.54%
• Average Volume (3M): 2.00K
• Price to Earnings (P/E): 101.9
• Beta (1Y): 0.01
• Revenue Growth: 0.55%
• EPS Growth: -88.72%
• 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: -1.39
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -9.75
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$2.50 ▼(-6.72% 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.

Positive Factors

Market Reach

Partnerships with major retailers and distributors expand market reach, ensuring sustained demand and visibility for its products.

Economies of Scale

Economies of scale in manufacturing help maintain competitive pricing, supporting profitability and market competitiveness.

Logistics and Supply Chain

Efficient logistics and supply chain management enhance operational efficiency, reducing costs and boosting profitability.

Negative Factors

Revenue Decline

Ongoing revenue decline indicates challenges in maintaining sales growth, potentially impacting long-term financial health.

Increased Leverage

Higher leverage increases financial risk, potentially limiting flexibility and increasing vulnerability to economic downturns.

Cash Flow Issues

Negative free cash flow growth highlights challenges in cash generation, affecting the ability to fund operations and investments.

Four Seas Mercantile Holdings Limited Business Overview & Revenue Model

Company Description

Four Seas Mercantile Holdings Limited (0374) is a Hong Kong-based investment holding company primarily engaged in the food and beverage sector. The company operates through several subsidiaries, focusing on the production, distribution, and retailing of a wide range of food products, including frozen seafood, snacks, and other culinary ingredients. With a strong emphasis on quality and customer satisfaction, Four Seas Mercantile has established itself as a trusted brand in the market, catering to both local and international consumers.

How the Company Makes Money

Four Seas Mercantile Holdings Limited generates revenue through multiple streams within the food and beverage sector. The company's primary revenue model is based on the sale of its products across various retail channels, including supermarkets, restaurants, and online platforms. Key revenue streams include the sale of frozen seafood, processed food items, and snacks. Additionally, the company benefits from strategic partnerships with suppliers and distributors, enhancing its market reach and operational efficiency. The growth in consumer demand for quality food products, along with effective marketing strategies, also contributes significantly to the company's earnings.

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.

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	305.70M	255.74M	299.94M	319.56M
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: 2.68
• 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 2.68 is below the 20-day moving average (MA) of 2.69, above the 50-day MA of 2.62, and above the 200-day MA of 2.55, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 67.65 is Neutral, neither overbought nor oversold. The STOCH value of 66.09 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	71 Outperform	HK$442.00M	9.64	8.56%	3.46%	3.24%	47.81%
8413	65 Neutral	HK$132.47M	126.67	0.79%	―	-1.30%	-61.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0677	58 Neutral	HK$594.09M	-41.18	-2.66%	6.48%	0.09%	-274.36%
1705	56 Neutral	HK$158.00M	8.88	10.63%	12.66%	0.15%	-33.33%
0374	51 Neutral	HK$1.03B	101.89	0.23%	3.54%	0.55%	-88.72%
8491	48 Neutral	HK$163.43M	-7.55	-14.15%	―	-2.25%	58.33%

Four Seas Mercantile Holdings Limited Corporate Events

Four Seas Mercantile Reports Decline in Interim Profit Despite Revenue Growth

Four Seas Mercantile Holdings Limited announced its interim results for the six months ended 30 September 2025, reporting a slight increase in revenue to HK$1,770,284,000 compared to the previous year. Despite the revenue growth, the company experienced a decrease in profit for the period, attributing HK$11,188,000 compared to HK$18,274,000 in 2024, largely due to increased cost of sales and administrative expenses. The results indicate challenges in maintaining profitability amidst rising costs, impacting the company’s financial performance and potentially affecting stakeholder confidence.

Four Seas Mercantile Announces Interim Cash Dividend

Four Seas Mercantile Holdings Limited announced an interim cash dividend of HKD 0.03 per share for the six months ending September 30, 2025. This dividend reflects the company’s ongoing commitment to returning value to its shareholders and may impact its financial positioning as it prepares for the fiscal year ending March 31, 2026.

Four Seas Mercantile Projects Profit Amidst Challenging Market Conditions

Four Seas Mercantile Holdings Limited announced an expected profit for the six months ended September 2025 between HK$11 million and HK$15 million, a decrease from the previous year’s HK$20 million due to weak consumer sentiment in Hong Kong and Mainland China. Despite the decline, the profit is anticipated to surpass the HK$10 million recorded for the financial year ended March 2025, highlighting the effectiveness of the company’s competitive pricing strategy and successful product launches, including the OHAYO Brulee Ice Cream and other popular items, which have bolstered market momentum.

Four Seas Mercantile Schedules Board Meeting for Interim Results

Four Seas Mercantile Holdings Limited has announced a board meeting scheduled for November 28, 2025, to review and approve the interim results for the six months ending September 30, 2025. The meeting will also consider the payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.