Tungtex (Holdings) Co (0518) AI Stock Analysis

• Market Cap: HK$87.51M
• Dividend Yield: 2.59%
• Average Volume (3M): 24.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• 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$0.19 ▲(2.11% Upside)

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.

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

Tungtex generates revenue primarily through the sale of garments to international clients, including retailers and wholesalers. The company employs a business model that leverages contract manufacturing, allowing it to produce apparel under private labels for its customers. Key revenue streams include sales from its own branded products, as well as contract manufacturing services for other brands. Additionally, Tungtex benefits from strategic partnerships with major retailers, which provide a steady demand for its products. The company's focus on high-quality materials and sustainable practices also positions it favorably in a competitive market, contributing to its overall profitability.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Neutral
• Last Price: 0.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 0.19 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.20, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.68 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 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$104.05M	3.01	11.95%	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$75.26M	-2.31	-8.92%	―	7.57%	-1383.56%
1968	49 Neutral	HK$100.48M	-3.74	-11.54%	―	17.91%	20.40%
2223	48 Neutral	HK$201.13M	-15.20	-3.62%	―	-9.34%	-177.30%
0518	46 Neutral	HK$87.51M	-31.80	-0.71%	2.59%	3.84%	83.42%
1682	46 Neutral	HK$141.47M	-29.51	-5.37%	―	8.95%	-310.34%

Tungtex (Holdings) Co Corporate Events

Tungtex Reports Improved Interim Loss Amid Revenue Decline

Tungtex (Holdings) Company Limited reported its unaudited interim results for the six months ending September 30, 2025, showing a decrease in revenue to HK$279.6 million from HK$323.3 million in the same period of 2024. Despite a slight increase in gross profit, the company recorded a loss of HK$8.1 million, an improvement from the HK$15.4 million loss in the previous year, indicating a challenging market environment but some operational improvements.

The most recent analyst rating on (HK:0518) stock is a Hold with a HK$0.19 price target. To see the full list of analyst forecasts on Tungtex (Holdings) Co stock, see the HK:0518 Stock Forecast page.

Tungtex Reports Reduced Losses Amid Improved Efficiency

Tungtex (Holdings) Company Limited has announced an expected reduction in net loss for the six months ending September 2025, with losses anticipated to be no more than HK$9.0 million, compared to HK$14.8 million in the previous year. This improvement is attributed to enhanced operational efficiency and cost management, although the figures are preliminary and subject to final audit and approval processes.

Tungtex Announces Upcoming Board Meeting for Interim Results

Tungtex (Holdings) Company Limited has announced a board meeting scheduled for November 27, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This announcement indicates the company’s ongoing financial assessment and potential shareholder returns, which could impact its market positioning and stakeholder interests.