Future World Holdings Limited (0572) AI Stock Analysis

• Market Cap: HK$135.68M
• Dividend Yield: N/A
• Average Volume (3M): 152.11K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.43
• Revenue Growth: 419.68%
• EPS Growth: N/A
• Country: HK
• Employees: 580
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Financial - Capital Markets
• EPS (TTM): 0.06
• Shares Outstanding: 301,507,900
• 10 Day Avg. Volume: 212,036
• 30 Day Avg. Volume: 152,113
• PEG Ratio: -0.10
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 1.66
• P/FCF Ratio: 4.20
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$0.47 ▲(4.44% Upside)

The overall stock score of 50 reflects a mix of strong revenue growth and improved profitability, offset by significant cash flow challenges and bearish technical indicators. The stock's undervaluation based on its P/E ratio provides some upside potential, but liquidity risks and market momentum concerns weigh on the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust market demand and effective business strategies, positioning the company for future expansion.

Profit Margins

High profit margins suggest efficient cost management and pricing power, enhancing long-term profitability and competitiveness.

Sector Focus

Targeting high-growth sectors aligns with global trends, offering strategic advantages and opportunities for sustained revenue growth.

Negative Factors

Cash Flow Challenges

Lack of positive cash flow generation can hinder liquidity and operational flexibility, posing risks to the company's financial health.

Earnings Volatility

Earnings volatility reflects inconsistent operational performance, which may affect investor confidence and long-term stability.

Increased Leverage

Higher leverage increases financial risk, potentially impacting the company's ability to invest in growth or weather economic downturns.

Future World Holdings Limited Business Overview & Revenue Model

Company Description

Future World Holdings Limited, an investment holding company, engages in securities trading and investment activities in the People's Republic of China and Hong Kong. The company operates through High Technology Business, Property Investment, Provision of Financing Services, Securities Trading and Investment, Trading Business and Related Services, Securities Brokerage Business, Investment in Film Industry, and Licensing of e-commerce Platform segments. It also provides artificial intelligence products and application solutions; intelligent industrial welding robots and equipment; and money lending, securities advisory, asset management, supply-chain financing, and offshore bond and overseas asset allocation services. In addition, the company invests in properties and film production activities; develops and operates real estate properties; and trades in robotic gripper, copper cathodes, face masks, COVID-19 test kits, and anime products. The company was formerly known as Future World Financial Holdings Limited and changed its name to Future World Holdings Limited in July 2020. Future World Holdings Limited was founded in 1997 and is headquartered in Kowloon, Hong Kong.

How the Company Makes Money

Future World Holdings Limited generates revenue through several key streams. The primary source of income comes from investment returns on its diversified portfolio, which includes equity holdings, fixed-income securities, and alternative investments. Additionally, the company earns fees from providing financial advisory services to clients seeking strategic guidance in investments and market entry. Significant partnerships with industry leaders and startups enhance its investment capabilities and provide access to lucrative opportunities. The company's focus on sectors with high growth potential, such as technology and renewable energy, positions it to benefit from market trends and demand, further contributing to its earnings.

Future World Holdings Limited Financial Statement Overview

Summary

Future World Holdings Limited shows strong revenue growth and improved profitability in 2024. However, significant challenges in cash flow generation and historical earnings volatility, along with increased leverage, hinder financial stability.

Income Statement

The company shows a substantial revenue increase from 2023 to 2024, with a growth rate of 116.85%. Gross and net profit margins for 2024 are strong at 63.11% and 15.98% respectively, indicating improved profitability. However, the company experienced significant EBIT and EBITDA losses in previous years, reflecting volatility in operational efficiency and earnings performance.

Balance Sheet

The debt-to-equity ratio improved from 0.51 in 2023 to 0.88 in 2024, indicating increased leverage but within a manageable range. The equity ratio decreased slightly to 50.85%, suggesting a stable capital structure. The company's return on equity for 2024 is 15.91%, showing effective utilization of equity to generate profit. Overall, the balance sheet reflects moderate financial stability with some leverage risk.

Cash Flow

Cash flow metrics show a concerning picture with zero operating and free cash flow in 2024, indicating potential issues in cash generation. Historical cash flow data shows fluctuations, with significant negative free cash flow in past years. The lack of positive cash flow generation poses a risk to liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.11M	84.46M	38.95M	47.14M	81.90M	222.19M
Gross Profit	64.07M	53.31M	21.64M	27.82M	26.88M	50.70M
EBITDA	-6.29M	1.22M	-128.70M	12.56M	-8.82M	1.14M
Net Income	18.11M	13.49M	-151.73M	-7.02M	-7.64M	-38.00M
Balance Sheet
Total Assets	1.72B	1.67B	1.23B	1.37B	1.38B	1.49B
Cash, Cash Equivalents and Short-Term Investments	80.41M	113.83M	170.55M	181.73M	18.88M	13.55M
Total Debt	718.82M	750.60M	409.00M	389.15M	425.89M	468.54M
Total Liabilities	830.75M	819.50M	424.86M	437.05M	466.04M	538.66M
Stockholders Equity	892.63M	848.03M	801.07M	946.15M	917.82M	944.96M
Cash Flow
Free Cash Flow	13.86M	33.34M	-32.23M	71.76M	-2.56M	-65.51M
Operating Cash Flow	25.97M	44.71M	-31.38M	72.54M	-219.00K	-54.14M
Investing Cash Flow	20.30M	36.54M	1.78M	6.73M	63.32M	20.07M
Financing Cash Flow	-134.18M	-65.82M	82.13M	852.00K	-67.91M	6.41M

Future World Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0572, the sentiment is Negative. The current price of 0.45 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.50, and below the 200-day MA of 0.50, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 54.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0572.

Future World Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0111	54 Neutral	HK$346.25M	25.23	1.47%	―	22.62%	―
0211	52 Neutral	HK$205.25M	-4.12	-17.99%	―	―	―
0572	50 Neutral	HK$135.68M	7.80	2.13%	―	419.68%	―
8295	41 Neutral	HK$143.28M	-0.63	-31.14%	―	-1.59%	20.07%

Future World Holdings Limited Corporate Events

Future World Holdings Allocates Disposal Proceeds for Debt and Investments

Future World Holdings Limited announced the intended allocation of proceeds from a recent disposal, with approximately HK$17,071,000 earmarked for debt repayment, HK$5,602,000 for general working capital, and HK$8,207,000 for future investment opportunities. The company has not yet identified specific investment targets but plans to focus on properties and securities, with any significant investments to be disclosed in accordance with listing rules.

The most recent analyst rating on (HK:0572) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Future World Holdings Limited stock, see the HK:0572 Stock Forecast page.

Future World Holdings Updates on 2024 Share Option Scheme

Future World Holdings Limited has released a supplemental announcement regarding its 2024 Annual Report, specifically focusing on the Scheme 2021 share option plan. The announcement details the number of options available for grant and shares available for issue under the scheme, which remain consistent from the beginning to the end of 2024. The company also outlines the maximum entitlement for each participant under the scheme, emphasizing that any further grants exceeding 1% of shares in issue must be approved by shareholders. This announcement does not alter any other information in the 2024 Annual Report.

Future World Holdings Limited Sells SDHG Shares to Reallocate Resources

Future World Holdings Limited announced the disposal of 6,310,500 SDHG shares on the open market for approximately HK$30,880,000. This transaction is classified as a discloseable transaction under the Listing Rules, allowing the company to reallocate resources and potentially reduce borrowings or invest in new opportunities. Despite a minor loss expected from the sale, the move reflects the company’s strategy to optimize its investment portfolio amidst volatile trading conditions.

Future World Holdings Reports Strong Interim Results for H1 2025

Future World Holdings Limited announced its unaudited interim results for the first half of 2025, showing a significant increase in revenue to HKD 58,254,000 from HKD 23,598,000 in the same period of 2024. The company reported a profit of HKD 17,703,000, up from HKD 12,276,000, reflecting improved operational efficiency and strategic financial management, which could positively impact its market positioning and stakeholder confidence.

Future World Holdings Announces Upcoming Board Meeting for Interim Results

Future World Holdings Limited has announced that its board of directors will meet on August 28, 2025, to consider and approve the interim results for the six months ending June 30, 2025, and to discuss the potential payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting stakeholders’ perceptions and the company’s market positioning.