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Hing Lee (HK) Holdings Limited (HK:0396)
:0396
Hong Kong Market

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

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HK

Hing Lee (HK) Holdings Limited

(0396)

Rating:51Neutral
Price Target:
Hing Lee (HK) Holdings Limited shows signs of recovery with a return to profitability and a strong balance sheet, but weak cash flow remains a concern. Technical indicators reflect a bearish trend, while the low P/E ratio suggests potential undervaluation. The stock score reflects these mixed signals, with financial performance and valuation as key determinants.

Hing Lee (HK) Holdings Limited (0396) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionHing Lee (HK) Holdings Limited (0396) is a Hong Kong-based company engaged in the design, manufacture, and sale of home furniture. The company's product portfolio includes a wide range of furniture items such as bedroom sets, dining room sets, living room suites, and occasional furniture, primarily targeting the mid-to-high end market segments. The company markets its products under several brand names, catering to different consumer tastes and preferences.
How the Company Makes MoneyHing Lee (HK) Holdings Limited generates revenue primarily through the sale of its furniture products. The company's revenue streams include wholesale distribution to furniture retailers, direct sales to end consumers through its retail outlets, and exports to international markets. Hing Lee leverages its established brand names and product design capabilities to maintain a competitive edge in the furniture industry. Additionally, strategic partnerships with distributors and retailers help expand its market reach. The company's earnings are influenced by factors such as consumer demand trends, raw material costs, and operational efficiency in manufacturing and supply chain management.

Hing Lee (HK) Holdings Limited Financial Statement Overview

Summary
Hing Lee (HK) Holdings Limited is undergoing a recovery phase, as evidenced by a return to profitability in 2024. Despite improvements in income statement metrics, the company's 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. Continued focus on revenue growth and cash generation will be critical for sustaining long-term financial health.
Income Statement
45
Neutral
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
60
Neutral
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue113.87M94.21M100.39M175.01M203.47M
Gross Profit15.70M22.41M24.30M24.08M18.82M
EBITDA5.80M-100.00K-12.91M11.01M-39.58M
Net Income15.32M-11.46M-26.73M-5.52M-59.20M
Balance Sheet
Total Assets66.32M182.27M222.16M288.35M294.35M
Cash, Cash Equivalents and Short-Term Investments26.95M33.51M38.05M45.97M70.42M
Total Debt2.25M60.10M80.88M94.33M85.34M
Total Liabilities14.32M75.10M103.43M140.94M141.37M
Stockholders Equity52.00M107.17M118.73M147.41M152.98M
Cash Flow
Free Cash Flow0.0015.61M195.00K-30.64M-20.45M
Operating Cash Flow6.70M15.87M199.00K-30.59M3.12M
Investing Cash Flow0.00-223.00K88.00K-113.00K-21.40M
Financing Cash Flow0.00-20.13M-7.44M5.65M27.49M

Hing Lee (HK) Holdings Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.10
Price Trends
50DMA
0.09
Positive
100DMA
0.09
Positive
200DMA
0.08
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
43.26
Neutral
STOCH
20.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0396, the sentiment is Neutral. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.09, and above the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.26 is Neutral, neither overbought nor oversold. The STOCH value of 20.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0396.

Hing Lee (HK) Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$121.09B8.903.52%4.51%-3.04%-20.01%
70
Outperform
$20.15B7.445.64%5.46%5.93%-3.64%
56
Neutral
HK$23.69B3.90-1.57%6.91%0.06%-64.88%
56
Neutral
$15.16B15.812.05%9.33%
51
Neutral
HK$75.15M5.4219.25%20.86%
45
Neutral
$15.32B-49.73%-52.23%-42.48%
40
Underperform
HK$63.92M
-27.38%-3.14%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0396
Hing Lee (HK) Holdings Limited
0.09
0.04
80.00%
HK:1239
Teamway International Group Holdings Limited
0.16
0.09
128.57%
HK:1199
COSCO SHIPPING Ports
5.26
0.23
4.59%
HK:1918
Sunac China Holdings
1.49
0.33
28.45%
HK:2689
Nine Dragons Paper Holdings
3.39
0.14
4.31%
HK:1113
CK Asset Holdings
35.25
7.38
26.48%

Hing Lee (HK) Holdings Limited Corporate Events

Hing Lee (HK) Holdings Announces 2025 AGM and Key Resolutions
Apr 25, 2025

Hing Lee (HK) Holdings Limited has announced its upcoming annual general meeting, scheduled for May 23, 2025, in Hong Kong. The meeting will cover several key agenda items, including the review of the company’s audited financial statements for the year ending December 31, 2024, the re-election of directors, and the re-appointment of Baker Tilly Hong Kong Limited as auditors. Additionally, the company will consider resolutions regarding the repurchase of shares, granting directors the authority to buy back up to 10% of the company’s share capital, subject to certain conditions.

Hing Lee (HK) Holdings Limited Reports Turnaround in 2024 Financial Results
Mar 28, 2025

Hing Lee (HK) Holdings Limited announced its audited consolidated results for the year ended December 31, 2024. The company reported a revenue increase to HK$113,869,000 from HK$94,213,000 in 2023, with a profit of HK$15,324,000 compared to a loss of HK$11,456,000 the previous year. This turnaround is attributed to a gain on the disposal of subsidiaries and reduced administrative expenses, indicating a positive impact on the company’s operations and financial health.

Hing Lee (HK) Holdings to Announce Annual Results
Mar 18, 2025

Hing Lee (HK) Holdings Limited has announced that its board of directors will hold a meeting on March 28, 2025, to approve and publish the annual results for the year ended December 31, 2024. This meeting is crucial for the company as it will determine the financial performance of the past year and guide future strategic decisions.

Hing Lee (HK) Holdings Limited Announces Positive Profit Alert for 2024
Mar 17, 2025

Hing Lee (HK) Holdings Limited has announced a positive profit alert, indicating a significant financial turnaround for the year ending December 31, 2024. The company expects to report a consolidated profit of approximately HK$15.3 million, a notable improvement from the previous year’s loss of HK$11.5 million. This positive shift is primarily attributed to a gain from the disposal of a subsidiary and a reduction in administrative expenses. While the financial results are still being finalized, the announcement suggests a promising outlook for the company’s stakeholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 23, 2025