High Fashion International Limited (0608) AI Stock Analysis

• Market Cap: HK$473.70M
• Dividend Yield: 2.33%
• Average Volume (3M): 600.00
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.26
• 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

Business Model Strength

The diversified revenue streams, including direct-to-consumer sales and partnerships with luxury stores, enhance resilience and market reach.

Balance Sheet Health

A stable balance sheet with moderate leverage provides financial flexibility to navigate economic fluctuations and invest in growth opportunities.

Gross Profit Margin Improvement

Improved gross profit margins indicate better cost management and pricing power, which can enhance long-term profitability.

Negative Factors

Declining Revenue Growth

Negative revenue growth suggests challenges in market demand or competitive positioning, which could impact future earnings potential.

Cash Flow Challenges

Negative cash flow growth and operating cash flow highlight potential liquidity issues, which could constrain investment and operational flexibility.

Declining Profitability Margins

Decreasing net profit margins indicate reduced efficiency in converting sales into profits, affecting overall financial performance.

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. The balance sheet is stable with moderate leverage, but the cash flow situation is concerning due to negative free cash flow growth and operating cash flow.

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: 1.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1.55 is above the 20-day moving average (MA) of 1.52, above the 50-day MA of 1.50, and above the 200-day MA of 1.45, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.48 is Neutral, neither overbought nor oversold. The STOCH value of 69.70 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	63 Neutral	HK$473.70M	5.91	2.55%	2.33%	-4.07%	-26.53%
1795	62 Neutral	HK$408.00M	9.69	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$351.91M	-19.77	-2.76%	4.55%	-1.24%	5.98%
3322	50 Neutral	HK$292.84M	-9.31	-2.35%	―	24.99%	89.24%
8521	46 Neutral	HK$715.68M	-23.79	-18.51%	―	-22.51%	-555.79%
1906	46 Neutral	HK$647.29M	-24.16	-6.24%	―	5.88%	16.82%

High Fashion International Limited Corporate Events

High Fashion International Limited Announces New Board Structure

High Fashion International Limited has announced the updated list of its board of directors, effective from October 15, 2025. The board is composed of executive, non-executive, and independent non-executive directors, with Mr. Lam Foo Wah serving as Chairman. The company has also established four committees: Audit, Remuneration, Nomination, and Risk Management, with various board members serving as chairs and members. This restructuring is likely aimed at strengthening governance and enhancing strategic oversight, potentially impacting the company’s operations and stakeholder relations positively.

The most recent analyst rating on (HK:0608) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on High Fashion International Limited stock, see the HK:0608 Stock Forecast page.

High Fashion International Announces Board and Committee Changes

High Fashion International Limited has announced changes in its board of directors and the composition of its Nomination Committee. Mr. Lau Yip Shing has been re-designated from an independent non-executive director to a non-executive director and has resigned from the Nomination Committee, while Mr. Lam Din Yu, Well has also resigned from the committee. These changes are effective from October 15, 2025, and reflect the company’s ongoing adjustments in its governance structure.

The most recent analyst rating on (HK:0608) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on High Fashion International Limited stock, see the HK:0608 Stock Forecast page.