Tungtex (Holdings) Co (0518) AI Stock Analysis

• Market Cap: HK$83.90M
• Dividend Yield: 2.59%
• Average Volume (3M): 24.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• Revenue Growth: 3.84%
• EPS Growth: 83.42%
• Country: HK
• Employees: 1,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.02
• Shares Outstanding: 451,067,570
• 10 Day Avg. Volume: 63,000
• 30 Day Avg. Volume: 24,466
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.18 ▼(-4.21% Downside)
• Action: Reiterated Date: 10/16/25
• Date: Action: Reiterated 10/16/25

The overall stock score is primarily influenced by the company's financial performance challenges, including negative profitability and weak cash flow. Technical analysis shows a neutral trend, while valuation concerns are highlighted by a negative P/E ratio. The dividend yield offers a slight positive aspect.

Positive Factors

Low leverage / stable capital structure

A low debt-to-equity ratio and stable equity ratio provide durable financial flexibility, reducing default and refinancing risk. This allows management to fund working capital or selective investments without heavy interest burdens, supporting stability through apparel cycles over months.

Consistent revenue growth

Sustained top-line growth indicates continued product demand or successful distribution execution. Persistent revenue expansion gives management room to improve margins and absorb cost pressures, underpinning medium-term recovery potential if operational efficiency improves.

Low earnings volatility (low beta)

A very low beta suggests the company's earnings and cash flows are less sensitive to broad market swings. That stability helps management plan inventory, contracts and working capital more reliably, reducing short-term financing stress and supporting steady operations.

Negative Factors

Negative profitability and margins

Persistent negative net profit and EBIT margins show the company is not converting sales into sustainable earnings, reflecting structural cost or pricing issues. Continued unprofitable operations limit retained earnings and constrain reinvestment, harming long-term viability.

Weak operating and free cash flow

Negative operating and free cash flows indicate difficulty turning reported revenue into usable cash. This restricts the firm's ability to fund capex, pay dividends, or reduce debt organically, increasing reliance on external financing and raising structural liquidity risk.

Negative return on equity

A negative ROE signals the firm is eroding shareholder value rather than creating it, implying persistent inefficiencies or pricing/margin problems. Over time this undermines investor confidence and can limit access to capital needed for strategic improvements.

Tungtex (Holdings) Co Business Overview & Revenue Model

Company Description

Tungtex (Holdings) Company Limited, an investment holding company, manufactures, sells, retails, and trades in garments in North America, Asia, Europe, and internationally. The company manufactures and exports ladies sportswear, casual wear, and suit pieces; and various women career and casual sportswear for department stores, chain stores, specialty stores, catalogs, and designer labels, as well as silk-blended, linen, cotton, and synthetic products. It is also involved in property investment activities. As of March 31, 2022, the company operated 177 Betu-brand stores in China. Tungtex (Holdings) Company Limited was founded in 1977 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

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Tungtex (Holdings) Co Financial Statement Overview

Summary

Tungtex (Holdings) Co is experiencing growth in revenue but continues to face profitability and cash flow challenges. The balance sheet is stable with low leverage, but the company needs to improve its operational efficiency and cash generation to enhance financial health.

Income Statement

The company has shown some improvement in revenue growth with an 11.1% increase in the latest year. However, profitability remains a concern with negative net profit and EBIT margins, indicating ongoing operational challenges. The gross profit margin has slightly decreased, reflecting potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.19, suggesting manageable leverage. However, the negative return on equity indicates that the company is not generating sufficient returns on shareholders' investments. The equity ratio remains stable, showing a solid capital structure.

Cash Flow

Cash flow performance is weak, with negative operating and free cash flows. Despite a slight improvement in free cash flow growth, the company struggles to convert earnings into cash, as indicated by negative operating cash flow to net income ratios.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	625.74M	669.45M	516.78M	753.21M	588.27M	460.38M
Gross Profit	124.57M	122.25M	105.82M	161.44M	112.05M	98.49M
EBITDA	9.28M	2.85M	1.56M	34.51M	-8.86M	270.55M
Net Income	-2.77M	-9.93M	-12.80M	19.72M	-26.06M	256.00M
Balance Sheet
Total Assets	523.23M	552.72M	557.77M	558.97M	621.03M	618.31M
Cash, Cash Equivalents and Short-Term Investments	252.44M	136.58M	168.16M	184.62M	187.55M	278.08M
Total Debt	57.63M	76.23M	57.58M	63.57M	99.59M	108.88M
Total Liabilities	154.47M	175.02M	171.69M	154.20M	226.95M	197.30M
Stockholders Equity	383.76M	392.19M	399.43M	416.93M	405.32M	431.62M
Cash Flow
Free Cash Flow	15.29M	-47.42M	-19.90M	45.66M	-80.97M	-16.09M
Operating Cash Flow	17.56M	-44.29M	-17.71M	47.47M	-37.10M	-13.25M
Investing Cash Flow	603.00K	755.00K	15.16M	-3.63M	-30.82M	357.95M
Financing Cash Flow	-27.27M	12.26M	-13.40M	-43.05M	-25.43M	-187.91M

Tungtex (Holdings) Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.19 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.20, and below the 200-day MA of 0.20, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 32.19 is Neutral, neither overbought nor oversold. The STOCH value of 16.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$82.71M	2.47	11.56%	12.12%	-7.88%	-4.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0333	58 Neutral	HK$70.75M	-0.44	-8.92%	―	7.57%	-1383.56%
1968	49 Neutral	HK$123.52M	-1.55	-11.98%	―	17.91%	20.40%
2223	48 Neutral	HK$242.52M	-1.48	-3.62%	―	-9.34%	-177.30%
1682	47 Neutral	HK$115.53M	-24.03	-5.37%	―	8.95%	-310.34%
0518	46 Neutral	HK$83.90M	-3.11	-0.71%	2.59%	3.84%	83.42%