Fountain Set (Holdings) Limited (HK:0420)
:0420
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Fountain Set (Holdings) Limited
(0420)
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Rating:63Neutral
Price Target:
HK$0.78
▲(27.38% Upside)
Action:Reiterated
Date:05/09/26
The score is primarily driven by mixed fundamentals: improving profitability and a low-leverage balance sheet are positives, but multi-year revenue decline and thin margins remain key risks. Technically, the trend is positive but appears overextended, while valuation is reasonable with a modest dividend yield.
Positive Factors
Conservative balance sheet / low leverage
Very low debt-to-equity provides durable financial flexibility and a cushion against cyclical demand drops. Low leverage reduces insolvency risk, helps fund working capital or modest capex without external financing, and supports survival through multi-quarter earnings volatility.
Negative Factors
Multi-year revenue decline
A sustained top-line contraction reduces scale and operating leverage, making margin recovery harder and limiting resources for marketing or product investment. Continued revenue erosion would constrain medium-term growth and make earnings improvements fragile.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Very low debt-to-equity provides durable financial flexibility and a cushion against cyclical demand drops. Low leverage reduces insolvency risk, helps fund working capital or modest capex without external financing, and supports survival through multi-quarter earnings volatility.
Read all positive factors
Fountain Set (Holdings) Limited (0420) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$882.02M
Dividend Yield1.9%
Average Volume (3M)272.20K
Price to Earnings (P/E)10.3
Beta (1Y)0.29
Revenue Growth-6.55%
EPS Growth401.72%
CountryHK
Employees5,500
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.05
Shares Outstanding1,225,027,000
10 Day Avg. Volume151,600
30 Day Avg. Volume272,200
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.23
Price to Sales (P/S)0.18
P/FCF Ratio2.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Fountain Set (Holdings) Limited Business Overview & Revenue Model
Company Description
Fountain Set (Holdings) Limited, an investment holding company, produces and sells knitted fabrics and garments in Hong Kong, the People's Republic of China, Taiwan, Korea, Sri Lanka, the United States, Europe, and internationally. It is involved ...
How the Company Makes Money
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Fountain Set (Holdings) Limited Financial Statement Overview
Summary
Income Statement
53
Neutral
Balance Sheet
74
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.14B | 4.43B | 4.44B | 6.05B | 6.75B |
| Gross Profit | 559.40M | 529.41M | 321.99M | 577.82M | 879.54M |
| EBITDA | 297.80M | 252.01M | 339.40M | 204.77M | 549.24M |
| Net Income | 71.30M | 14.26M | 50.90M | -115.53M | 241.33M |
Balance Sheet | |||||
| Total Assets | 4.53B | 4.61B | 4.90B | 5.05B | 5.75B |
| Cash, Cash Equivalents and Short-Term Investments | 1.55B | 1.30B | 1.38B | 1.39B | 824.98M |
| Total Debt | 185.92M | 182.67M | 325.03M | 579.25M | 482.31M |
| Total Liabilities | 1.04B | 1.16B | 1.43B | 1.62B | 1.99B |
| Stockholders Equity | 3.25B | 3.24B | 3.27B | 3.22B | 3.56B |
Cash Flow | |||||
| Free Cash Flow | 263.46M | -25.39M | 195.00M | 741.49M | -372.07M |
| Operating Cash Flow | 372.67M | 151.70M | 293.76M | 905.63M | -210.39M |
| Investing Cash Flow | 36.20M | 11.07M | 1.86M | -136.63M | -148.77M |
| Financing Cash Flow | -159.21M | -242.52M | -309.90M | -171.40M | -64.78M |
Fountain Set (Holdings) Limited Technical Analysis
Neutral
0.61
Price Trends
0.70
Positive
0.67
Positive
0.66
Positive
Market Momentum
<0.01
Positive
55.50
Neutral
61.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0420, the sentiment is Neutral. The current price of 0.61 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.70, and below the 200-day MA of 0.66, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 61.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0420.
Fountain Set (Holdings) Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | HK$16.86B | 10.93 | 14.30% | 5.87% | 6.88% | 11.98% | |
72 Outperform | HK$910.27M | 5.23 | 5.84% | 6.04% | -1.81% | -2.23% | |
71 Outperform | HK$67.95B | 14.19 | 15.53% | 4.31% | 8.19% | -6.72% | |
63 Neutral | HK$882.02M | 10.31 | 1.70% | 1.90% | -6.55% | 401.72% | |
63 Neutral | HK$2.19B | 1.51 | 15.14% | 12.14% | -0.95% | 2.58% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | HK$439.50M | 6.47 | -14.53% | ― | -5.61% | ― |
* Consumer Cyclical Sector Average
HK:0420
Fountain Set (Holdings) Limited
0.72
0.12
20.60%
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-17.40%
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0.43
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165.63%
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Fountain Set (Holdings) Limited Corporate Events
Fountain Set Sets June 2026 AGM, Proposes Dividend and Share Buyback Mandate
May 8, 2026
Fountain Set (Holdings) Limited has called its annual general meeting for 4 June 2026 in Hong Kong, where shareholders will review the audited consolidated financial statements for the year ended 31 December 2025. The meeting will also consider a ...
Fountain Set Declares Final Dividend for 2025 Financial Year
Mar 19, 2026
Fountain Set (Holdings) Limited has declared a final ordinary cash dividend of HKD 0.057 per share for the financial year ended 31 December 2025, with shareholder approval scheduled for 4 June 2026. The dividend will be paid in Hong Kong dollars o...
Fountain Set Boosts Profit and Dividend on Cost Cuts Despite Revenue Dip
Mar 19, 2026
Fountain Set (Holdings) Limited reported a sharp improvement in profitability for 2025 despite a decline in revenue to HK$4.14 billion, as tighter cost control, lean operations, and upgraded production technology drove an 8.21% reduction in cost o...
Fountain Set Sets March Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 5, 2026
Fountain Set (Holdings) Limited has scheduled a board meeting for 19 March 2026 to review and approve the annual results for the financial year ended 31 December 2025. At the same meeting, the board will also consider whether to recommend the paym...
Fountain Set Signals Sharp Profit Surge on Cost Controls and Operational Efficiencies
Mar 3, 2026
Fountain Set (Holdings) Limited has issued a positive profit alert, indicating a substantial improvement in its unaudited results for the year ended 31 December 2025. The group expects profit attributable to owners to jump to about HK$70 million f...
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.