Tungtex (Holdings) Co (0518) AI Stock Analysis

• Market Cap: HK$91.57M
• Dividend Yield: 2.45%
• Average Volume (3M): 296.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: 29.54%
• EPS Growth: 22.54%
• Country: HK
• Employees: 1,600
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.01
• Shares Outstanding: 451,067,570
• 10 Day Avg. Volume: 71,200
• 30 Day Avg. Volume: 296,866
• PEG Ratio: 0.40
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -1.87
• 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: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by financial performance challenges, including profitability and cash flow issues. Technical analysis indicates weak momentum, while valuation metrics suggest potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

Tungtex (Holdings) Co Business Overview & Revenue Model

Company Description

Tungtex (Holdings) Co., Ltd. is a Hong Kong-based investment holding company primarily engaged in the manufacture and sale of apparel, particularly knitwear and woven garments. The company operates in the textile and clothing sectors, providing a range of products including casual wear, sportswear, and fashion garments. Tungtex serves various markets, including Europe, the United States, and Asia, and focuses on quality production and design to meet the needs of its diverse client base.

How the Company Makes Money

Tungtex generates revenue primarily through the production and sale of garments to international retailers and brands. The company's revenue model is based on contract manufacturing, where it produces apparel according to the specifications of its clients. Key revenue streams include sales of knitwear, woven garments, and other textile products. Tungtex benefits from long-term relationships with several major retailers, which provide a steady demand for its products. Additionally, the company invests in efficient production processes and quality control, which helps reduce costs and improve profitability. Economic conditions in key markets and trends in fashion also play significant roles in the company's earnings.

Tungtex (Holdings) Co Financial Statement Overview

Summary

Tungtex (Holdings) Co faces financial headwinds across the board. Revenue declines and operating losses signify significant income statement challenges. The balance sheet remains stable, with low leverage and strong equity, yet profitability is a concern. Cash flow struggles, with negative free cash flow, suggest liquidity management issues. Overall, the company needs strategic adjustments to regain financial health.

Income Statement

The company's revenue decreased by 31.39% in the most recent year, indicating significant challenges in maintaining sales momentum. Gross profit margin has weakened to 19.42%, from a stronger position last year. Net profit margin has turned negative at -2.48%, reflecting losses. EBIT margin also shows negative performance at -4.75%, while EBITDA margin is barely positive at 0.30%, suggesting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is low at 0.14, indicating a cautious leverage strategy. Despite this, return on equity is negative at -3.20%, highlighting profitability issues. The equity ratio is strong at 71.61%, suggesting financial stability through substantial equity backing.

Cash Flow

The company experienced a significant decline in free cash flow, dropping from a positive position last year to a negative free cash flow of -19.90 million. Operating cash flow to net income ratio is concerning at -1.38, indicating cash flow challenges. The free cash flow to net income ratio is also negative, reinforcing liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	602.57M	669.45M	516.78M	753.21M	588.27M	460.38M
Gross Profit	112.90M	122.25M	105.82M	161.44M	112.05M	98.49M
EBITDA	-20.00M	2.85M	1.54M	39.98M	-8.56M	270.55M
Net Income	-16.60M	-9.93M	-12.80M	19.72M	-26.06M	256.00M
Balance Sheet
Total Assets	570.43M	552.72M	557.77M	558.97M	621.03M	618.31M
Cash, Cash Equivalents and Short-Term Investments	157.91M	136.58M	168.16M	184.62M	187.55M	278.08M
Total Debt	78.69M	76.23M	57.58M	63.57M	99.59M	108.88M
Total Liabilities	201.66M	175.02M	171.69M	154.20M	226.95M	197.30M
Stockholders Equity	382.71M	392.19M	399.43M	416.93M	405.32M	431.62M
Cash Flow
Free Cash Flow	-45.97M	-47.42M	-19.90M	45.66M	-80.97M	-16.09M
Operating Cash Flow	-43.93M	-44.29M	-17.71M	47.47M	-37.10M	-13.25M
Investing Cash Flow	-98.00K	755.00K	15.16M	-3.63M	-30.82M	357.95M
Financing Cash Flow	17.84M	12.26M	-13.40M	-43.05M	-25.43M	-187.91M

Tungtex (Holdings) Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0518, the sentiment is Neutral. The current price of 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.20, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.45 is Neutral, neither overbought nor oversold. The STOCH value of 7.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0518.

Tungtex (Holdings) Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1749	70 Outperform	HK$124.06M	3.45	12.55%	9.09%	-6.75%	3.61%
0333	58 Neutral	HK$96.34M	―	-1.92%	―	20.02%	90.55%
Sector *	57 Neutral	HK$24.67B	3.83	-3.22%	5.89%	0.28%	-59.63%
1682	55 Neutral	HK$110.03M	116.67	1.05%	―	-36.69%	―
2223	55 Neutral	HK$69.62M	―	-2.60%	―	-13.04%	-111.11%
1968	48 Neutral	HK$77.44M	―	-13.54%	―	31.79%	7.61%
0518	45 Neutral	HK$91.57M	―	-2.50%	2.45%	29.54%	22.54%

Tungtex (Holdings) Co Corporate Events

Tungtex Announces Final Dividend for FY2025

Tungtex (Holdings) Company Limited has announced a final cash dividend of HKD 0.005 per share for the financial year ending March 31, 2025. The dividend will be paid on September 22, 2025, following shareholders’ approval on August 28, 2025. This announcement reflects the company’s commitment to providing returns to its shareholders and may influence investor perceptions and market positioning.

Tungtex Announces 2025 AGM with Key Resolutions

Tungtex (Holdings) Company Limited has announced its 2025 Annual General Meeting scheduled for August 28, 2025. Key agenda items include the approval of financial statements, declaration of a final dividend, re-election of directors, and granting mandates for share buybacks and issuance. These resolutions aim to reinforce the company’s governance and financial strategies, potentially impacting shareholder value and market positioning.

Tungtex Reports Increased Revenue but Sustains Net Loss for FY2025

Tungtex (Holdings) Company Limited reported its audited consolidated results for the year ended 31 March 2025, showing an increase in revenue to HK$669,450,000 compared to the previous year. Despite the revenue growth, the company faced a net loss of HK$11,070,000, attributed to increased costs and expenses, impacting its financial performance.

Tungtex (Holdings) Co Declares Final Dividend for FY2025

Tungtex (Holdings) Co announced a final ordinary cash dividend of HKD 0.005 per share for the financial year ending March 31, 2025. The ex-dividend date is set for September 5, 2025, with payment scheduled for September 22, 2025. This announcement reflects the company’s financial strategy and commitment to returning value to its shareholders, potentially impacting its market positioning and stakeholder confidence.