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

• Market Cap: HK$80.00M
• Dividend Yield: N/A
• Average Volume (3M): 261.27K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.22
• Revenue Growth: 20.86%
• EPS Growth: N/A
• Country: HK
• Employees: 125
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.02
• Shares Outstanding: 808,096,000
• 10 Day Avg. Volume: 345,400
• 30 Day Avg. Volume: 261,266
• PEG Ratio: 0.02
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.51
• 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

• Rating: 51 Neutral
• 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 Business Overview & Revenue Model

Company Description

Hing Lee (HK) Holdings Limited, an investment holding company, engages in the design, manufacture, marketing, sale, and export of home furniture products in the People's Republic of China, rest of Asia, Europe, the United States, and internationally. The company primarily offers wood-based furniture, sofa, and mattresses for bedroom, living room, dining room, and home office use. It also provides promotional services related to layout design, fitting, and display of products. In addition, the company is involved in the licensing of its own brands and product designs. It offers its products and services under the Aomax, Mogou, Johnston, and Oriant brand names. The company was formerly known as HingLi Home Concepts Ltd. and changed its name to Hing Lee (HK) Holdings Limited in November 2008. Hing Lee (HK) Holdings Limited was founded in 1993 and is headquartered in Sha Tin, Hong Kong.

How the Company Makes Money

Hing 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	113.87M	94.21M	100.39M	175.01M	203.47M
Gross Profit	15.70M	22.41M	24.30M	24.08M	18.82M
EBITDA	5.80M	-100.00K	-12.91M	11.01M	-39.58M
Net Income	15.32M	-11.46M	-26.73M	-5.52M	-59.20M
Balance Sheet
Total Assets	66.32M	182.27M	222.16M	288.35M	294.35M
Cash, Cash Equivalents and Short-Term Investments	26.95M	33.51M	38.05M	45.97M	70.42M
Total Debt	2.25M	60.10M	80.88M	94.33M	85.34M
Total Liabilities	14.32M	75.10M	103.43M	140.94M	141.37M
Stockholders Equity	52.00M	107.17M	118.73M	147.41M	152.98M
Cash Flow
Free Cash Flow	0.00	15.61M	195.00K	-30.64M	-20.45M
Operating Cash Flow	6.70M	15.87M	199.00K	-30.59M	3.12M
Investing Cash Flow	0.00	-223.00K	88.00K	-113.00K	-21.40M
Financing Cash Flow	0.00	-20.13M	-7.44M	5.65M	27.49M

Hing Lee (HK) Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 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 0.1 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.38 is Neutral, neither overbought nor oversold. The STOCH value of 74.23 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	66 Neutral	HK$1.47B	7.90	20.34%	1.06%	-0.87%	-3.46%
Sector *	63 Neutral	$17.32B	10.90	-7.25%	3.10%	1.66%	-25.40%
8547	59 Neutral	HK$63.22M	4.68	19.48%	―	30.56%	―
0396	51 Neutral	HK$80.00M	5.21	19.25%	―	20.86%	―
1715	46 Neutral	HK$129.87M	―	-71.41%	―	6.24%	44.29%
1198	42 Neutral	HK$714.60M	―		3.85%	―	―
2127	41 Neutral	HK$76.58M	―	-38.40%	―	-72.73%	-764.81%

Hing Lee (HK) Holdings Limited Corporate Events

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

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

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

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

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.