Hing Lee (HK) Holdings Limited (0396) AI Stock Analysis

• Market Cap: HK$99.40M
• Dividend Yield: 8.93%
• Average Volume (3M): 51.33K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.03
• Revenue Growth: -13.44%
• EPS Growth: N/A
• Country: HK
• Employees: 125
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): <0.01
• Shares Outstanding: 808,096,000
• 10 Day Avg. Volume: 35,800
• 30 Day Avg. Volume: 51,333
• PEG Ratio: -0.02
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 10.76
• 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: 53 Neutral
• Price Target: HK$0.12 ▼(-3.33% Downside)

The overall stock score is primarily influenced by the company's financial performance, which shows a return to profitability but is hindered by weak cash flow management. Technical analysis suggests a positive trend, but with potential bearish momentum. The stock's valuation is attractive due to a low P/E ratio and high dividend yield, making it appealing for value and income investors.

Positive Factors

Return to Profitability

Returning to profitability indicates improved operational efficiency and cost management, enhancing the company's long-term viability.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, supporting sustainable growth and resilience.

Improved Gross Profit Margin

Improved gross margins reflect effective cost control, enhancing profitability and competitive positioning over the long term.

Negative Factors

Weak Cash Flow Management

Weak cash flow management can hinder operational sustainability and limit the ability to invest in growth opportunities.

Declining Revenue Trend

A declining revenue trend poses challenges to growth and market competitiveness, potentially affecting long-term earnings potential.

Asset Decrease Concern

A decrease in total assets may limit future growth capabilities and reduce the company's ability to leverage its asset base effectively.

Hing Lee (HK) Holdings Limited Business Overview & Revenue Model

Company Description

Hing Lee (HK) Holdings Limited (0396) is a Hong Kong-based investment holding company primarily engaged in the manufacturing and distribution of a wide range of plastic products. The company operates in sectors such as consumer goods, packaging, and industrial products. Its core offerings include plastic household items, containers, and other related products, catering to both local and international markets.

How the Company Makes Money

Hing Lee generates revenue primarily through the sale of its plastic products to various sectors, including retail, hospitality, and industrial clients. The company operates on a business-to-business (B2B) model, supplying large quantities of products to distributors and retailers. Key revenue streams include direct sales of manufactured goods, as well as potential partnerships with other firms for co-branding or distribution agreements. Additionally, Hing Lee may benefit from economies of scale in production, enabling competitive pricing that attracts a broader customer base, thus enhancing their overall earnings potential.

Hing Lee (HK) Holdings Limited Financial Statement Overview

Summary

The company is in a recovery phase with a return to profitability in 2024. Despite improvements in income statement metrics, the cash flow position remains weak, posing risks to financial stability. The balance sheet is a relative strength, with low leverage and a solid equity base.

Income Statement

The company has shown improvement in recent years with a return to positive net income in 2024, after significant losses in the previous years. Gross profit margin has improved from 2023 to 2024, indicating better cost management. However, the overall revenue trend has been declining from 2019 to 2023. The revenue growth from 2023 to 2024 is a positive sign, but historical volatility in EBIT and net income margins suggests potential instability.

Balance Sheet

The company's balance sheet shows a strong equity position with a low debt-to-equity ratio, decreasing from 2023 to 2024. This indicates a relatively low leverage. The equity ratio is solid, showing a strong asset backing. However, the significant decrease in total assets from 2023 to 2024 might be a concern for future growth capabilities.

Cash Flow

Cash flow management appears to be a challenge, with zero operating and free cash flows in 2024. The lack of positive free cash flow and a fluctuating cash flow history may indicate issues with cash generation and sustainability of operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.78M	113.87M	94.21M	100.39M	175.01M	203.47M
Gross Profit	11.95M	15.70M	22.41M	24.30M	24.08M	18.82M
EBITDA	5.74M	5.80M	-100.00K	-12.91M	10.72M	-39.58M
Net Income	16.86M	15.32M	-11.46M	-26.73M	-5.52M	-59.20M
Balance Sheet
Total Assets	66.56M	66.32M	182.27M	222.16M	288.35M	294.35M
Cash, Cash Equivalents and Short-Term Investments	31.78M	26.95M	33.51M	38.05M	45.97M	70.42M
Total Debt	202.00K	2.25M	60.10M	80.88M	94.33M	85.34M
Total Liabilities	11.72M	14.32M	75.10M	103.43M	140.94M	141.37M
Stockholders Equity	54.84M	52.00M	107.17M	118.73M	147.41M	152.98M
Cash Flow
Free Cash Flow	7.14M	6.68M	15.61M	195.00K	-30.64M	-20.45M
Operating Cash Flow	7.16M	6.70M	15.87M	199.00K	-30.59M	3.12M
Investing Cash Flow	51.22M	51.22M	-223.00K	88.00K	-113.00K	-21.40M
Financing Cash Flow	-65.34M	-64.20M	-20.13M	-7.44M	5.65M	27.49M

Hing Lee (HK) Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0396, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 67.84 is Neutral, neither overbought nor oversold. The STOCH value of 31.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0396.

Hing Lee (HK) Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0837	78 Outperform	HK$1.91B	9.62	21.21%	4.75%	4.50%	4.18%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0396	53 Neutral	HK$99.40M	5.89	20.69%	8.93%	-13.44%	―
1715	44 Neutral	HK$174.97M	-2.56	-39.50%	―	-32.54%	71.35%
8547	42 Neutral	HK$28.38M	80.00	―	―	-21.85%	-98.18%
2127	41 Neutral	HK$76.58M	-0.04	―	―	-72.73%	-764.81%
1198	39 Underperform	HK$324.82M	-0.63	-36.67%	―	―	―