High Fashion International Limited (0608) AI Stock Analysis

• Market Cap: HK$482.87M
• Dividend Yield: 2.22%
• Average Volume (3M): 5.07K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.21
• Revenue Growth: -4.07%
• EPS Growth: -26.53%
• Country: HK
• Employees: 5,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.14
• Shares Outstanding: 305,615,420
• 10 Day Avg. Volume: 10,600
• 30 Day Avg. Volume: 5,066
• PEG Ratio: -0.32
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 0.00
• 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: HK$2.00
• Price Target Upside: 26.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: HK$2.00 ▲(26.58% Upside)

The overall stock score of 71 reflects a mix of strong technical indicators and attractive valuation, offset by significant financial performance challenges. The stock's bullish momentum and low P/E ratio are positive, but liquidity concerns and declining profitability margins present risks.

High Fashion International Limited Business Overview & Revenue Model

Company Description

High Fashion International Limited (0608) is a leading player in the fashion industry, specializing in the design, manufacture, and distribution of high-quality apparel and accessories. The company operates primarily in the sectors of ready-to-wear clothing, luxury fashion, and lifestyle products, catering to a diverse clientele that ranges from high-end retailers to fashion-conscious consumers. With a commitment to innovation and quality, High Fashion International Limited offers a wide array of products that include designer clothing lines, seasonal collections, and exclusive collaborations with renowned fashion designers.

How the Company Makes Money

High Fashion International Limited generates revenue through multiple streams, primarily by selling its apparel and accessories to retailers and consumers both domestically and internationally. The company benefits from direct-to-consumer sales through its branded retail stores and e-commerce platforms, which allow it to capture higher margins. Additionally, High Fashion International has established partnerships with various luxury department stores and boutiques, enhancing its distribution network and brand visibility. Seasonal product launches and limited-edition collections also contribute significantly to its earnings, as they create a sense of exclusivity and drive consumer demand. Furthermore, the company may earn royalties and licensing fees through collaborations with other fashion brands and designers, diversifying its revenue sources.

High Fashion International Limited Financial Statement Overview

Summary

High Fashion International Limited faces a challenging financial environment with declining revenue and profitability margins. While the balance sheet remains stable, the cash flow situation is concerning, with negative free cash flow growth and operating cash flow. The company needs to address these issues to improve its financial health.

Income Statement

The company shows a mixed performance in its income statement. While the gross profit margin has improved to 22.84% in 2024 from 20.93% in 2023, the net profit margin has decreased to 2.75% from 3.44%. Revenue growth is negative, indicating a decline in sales. The EBIT and EBITDA margins have also decreased, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.52, indicating moderate leverage. The return on equity has decreased slightly to 2.94% from 3.64%, showing a decline in profitability. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

The cash flow statement reveals significant challenges, with a negative free cash flow growth rate of -321.68% and negative operating cash flow. The free cash flow to net income ratio is 0, indicating cash flow issues. These factors highlight potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.20B	3.34B	3.31B	3.52B	2.89B	2.16B
Gross Profit	596.01M	762.02M	692.15M	680.37M	498.53M	386.69M
EBITDA	163.77M	251.56M	295.45M	276.48M	254.95M	219.12M
Net Income	80.12M	91.68M	113.66M	154.04M	147.21M	124.52M
Balance Sheet
Total Assets	6.26B	6.18B	6.35B	6.23B	6.17B	5.68B
Cash, Cash Equivalents and Short-Term Investments	573.04M	593.77M	875.39M	1.07B	1.10B	1.34B
Total Debt	1.64B	1.61B	1.65B	1.72B	1.70B	1.73B
Total Liabilities	3.09B	3.09B	3.26B	3.09B	3.04B	2.81B
Stockholders Equity	3.19B	3.12B	3.12B	3.17B	3.15B	2.90B
Cash Flow
Free Cash Flow	-11.27M	-110.02M	194.61M	191.35M	-79.74M	49.03M
Operating Cash Flow	70.00M	-15.25M	276.25M	266.61M	37.88M	107.22M
Investing Cash Flow	-36.42M	-44.77M	-118.71M	-12.35M	-250.71M	-176.75M
Financing Cash Flow	-357.78M	-155.43M	-196.95M	-37.95M	-85.13M	399.16M

High Fashion International Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0608, the sentiment is Positive. The current price of 1.58 is below the 20-day moving average (MA) of 1.58, above the 50-day MA of 1.51, and above the 200-day MA of 1.51, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 68.16 is Neutral, neither overbought nor oversold. The STOCH value of 72.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0608.

High Fashion International Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0608	71 Outperform	HK$482.87M	6.03	2.55%	2.22%	-4.07%	-26.53%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1795	60 Neutral	HK$372.00M	8.83	12.73%	4.84%	-2.28%	-12.14%
1906	46 Neutral	HK$779.70M	―	-6.24%	―	5.88%	16.82%
3778	45 Neutral	HK$381.97M	―	-2.76%	4.92%	-1.24%	5.81%
8521	44 Neutral	HK$964.89M	78.95	-18.51%	―	-22.51%	-555.79%
3322	43 Neutral	HK$235.05M	―	-2.35%	―	24.99%	89.24%