High Fashion International Limited (0608) AI Stock Analysis

• Market Cap: HK$455.37M
• Dividend Yield: 2.33%
• Average Volume (3M): 600.00
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.28
• 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: 1,400
• 30 Day Avg. Volume: 600
• PEG Ratio: -0.32
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -5.00
• 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: 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: 63 Neutral
• Price Target: HK$2.00 ▲(29.03% Upside)

The overall stock score of 63 reflects the company's mixed financial performance, with significant challenges in cash flow and declining profitability margins. While the stock appears undervalued based on its P/E ratio and offers a decent dividend yield, technical indicators suggest caution due to overbought conditions. The absence of notable earnings call insights or corporate events leaves the financial and technical aspects as the primary influences on the score.

Positive Factors

Stable capital structure

Moderate leverage and a strong equity ratio provide durable financial flexibility. This balance-sheet strength supports borrowing capacity for capex or working capital, helps absorb industry cyclicality, and reduces refinancing risk over the next several quarters.

Improving gross margin

An expanding gross margin indicates better sourcing, pricing power, or product mix. Sustained improvement at the gross level supports long-term margin recovery potential, giving management room to address operating inefficiencies without relying solely on revenue growth.

Operational scale

A sizeable workforce signals manufacturing scale and operational capacity in apparel production. Scale can translate into sourcing leverage, fixed-cost absorption, and ability to serve larger clients—structural advantages in maintaining production continuity and negotiating supplier terms.

Negative Factors

Severe cash-flow deterioration

Deep declines in operating and free cash flow weaken the company's internal funding for capex, inventory and dividends. Persistent negative cash generation increases reliance on external financing, elevating liquidity and solvency risk if cash conversion doesn't recover within months.

Declining sales trend

Negative revenue growth indicates shrinking top-line demand or market share in apparel manufacturing. Continued contraction limits operating leverage, pressures margins and reduces capacity utilization, making sustained profit recovery difficult without structural commercial improvements.

Eroding profitability metrics

Declining net margin and ROE reflect weakened ability to convert sales into shareholder returns. If operating efficiency and higher-level margins (EBIT/EBITDA) remain under pressure, earnings quality and reinvestment capacity will be constrained over the medium term.

High Fashion International Limited Business Overview & Revenue Model

Company Description

High Fashion International Limited, an investment holding company, engages in the manufacturing, retailing, and trading of garments in the United States, Europe, China, and internationally. The company operates through Manufacturing and Trading of Garments, Brand Business, and Property Investment and Development segments. It offers various woven and fabrics. The company is also involved in the holding of trademarks; trading of garments, fabrics, and accessories; property development and holding business; printing, dyeing, and sand washing of fabrics; and provision of management, silk weaving, and silk culture and tourism development services, as well as engages in property leasing, e-commerce, and garment retailing business. High Fashion International Limited was founded in 1978 and is headquartered in Kwai Chung, Hong Kong.

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: Negative
• Last Price: 1.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0608, the sentiment is Negative. The current price of 1.55 is above the 20-day moving average (MA) of 1.52, above the 50-day MA of 1.51, and above the 200-day MA of 1.44, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.62 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	63 Neutral	HK$455.37M	5.68	2.55%	2.33%	-4.07%	-26.53%
1795	62 Neutral	HK$336.00M	7.69	12.73%	5.26%	-2.28%	-12.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3778	51 Neutral	HK$369.44M	-18.22	-2.76%	4.55%	-1.24%	5.98%
3322	50 Neutral	HK$318.53M	-10.04	-2.35%	―	24.99%	89.24%
1906	46 Neutral	HK$838.54M	-32.58	-6.24%	―	5.88%	16.82%
8521	45 Neutral	HK$453.69M	-16.40	-18.51%	―	-22.51%	-555.79%