Carry Wealth Holdings Limited (0643) AI Stock Analysis

• Market Cap: HK$260.96M
• Dividend Yield: N/A
• Average Volume (3M): 2.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 34.81%
• EPS Growth: -272.28%
• Country: HK
• Employees: 213
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.02
• Shares Outstanding: 899,845,600
• 10 Day Avg. Volume: 4,532,300
• 30 Day Avg. Volume: 2,902,600
• PEG Ratio: -0.21
• Price to Book (P/B): 5.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.02
• 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

• Rating: 46 Neutral
• Price Target: ―

The overall stock score for Carry Wealth Holdings Limited is primarily influenced by its financial performance, which indicates revenue growth but ongoing profitability challenges. Technical indicators show some positive momentum, but valuation concerns due to a negative P/E ratio and lack of dividends weigh heavily. The absence of positive cash flow and potential overbought conditions further dampen the outlook.

Carry Wealth Holdings Limited Business Overview & Revenue Model

Company Description

Carry Wealth Holdings Limited (0643) is a company listed on the Hong Kong Stock Exchange, primarily engaged in garment manufacturing and trading. The company specializes in producing casual wear, sportswear, and other apparel for various international brands. With a focus on quality production and timely delivery, Carry Wealth Holdings caters to a broad customer base within the fashion industry, providing end-to-end solutions from design to finished product.

How the Company Makes Money

Carry Wealth Holdings Limited generates revenue through its garment manufacturing operations. The company earns money by producing apparel for international fashion brands, which involves designing, sourcing materials, manufacturing, and delivering finished products. Its key revenue streams include sales contracts with major clothing retailers and brands, which rely on Carry Wealth's expertise in producing high-quality garments at competitive prices. Additionally, the company may benefit from strategic partnerships with fabric suppliers and logistics companies to optimize its production and distribution processes. The ability to maintain strong relationships with high-profile clients and efficiently manage its supply chain are significant factors contributing to its earnings.

Carry Wealth Holdings Limited Financial Statement Overview

Summary

Carry Wealth Holdings Limited exhibits a mixed financial performance with growth in revenue not translating into profitability. The income statement shows declining profitability with negative net profit margins. The balance sheet is moderately stable with a low debt-to-equity ratio, but declining stockholders' equity raises concerns. Cash flow analysis reveals significant challenges in generating positive operating cash flow, highlighting cash management issues.

Income Statement

Carry Wealth Holdings Limited's income statement shows a declining profitability trend with a consistent negative net profit margin over the years, highlighting ongoing losses. Revenue in 2024 increased by 34.8% from 2023, but the net income decreased significantly, indicating inefficiencies converting revenue to profit. The negative EBIT and EBITDA margins reflect operational challenges in generating profit from core operations.

Balance Sheet

The balance sheet indicates moderate financial stability, with a relatively low debt-to-equity ratio of 0.01 in 2024. The equity ratio is strong at approximately 61.7%, showcasing a solid equity base relative to total assets. However, the company's declining stockholders' equity and increasing liabilities could pose long-term risks if not addressed.

Cash Flow

Cash flow analysis reveals significant challenges in generating positive operating cash flow, with a concerning shift from a positive operating cash flow in 2020 to zero in 2024. The lack of free cash flow growth further underscores the cash flow management issues, potentially limiting the ability to invest in growth opportunities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	664.69M	493.06M	499.02M	441.17M	290.51M
Gross Profit	66.14M	62.95M	80.22M	61.09M	47.02M
EBITDA	-15.93M	11.02M	9.29M	12.08M	-4.21M
Net Income	-33.79M	-8.92M	-7.54M	-1.46M	-15.35M
Balance Sheet
Total Assets	239.56M	279.30M	254.73M	289.23M	246.26M
Cash, Cash Equivalents and Short-Term Investments	113.30M	120.15M	97.02M	51.49M	85.92M
Total Debt	1.74M	33.91M	34.06M	65.65M	25.08M
Total Liabilities	91.64M	101.45M	125.20M	140.88M	107.00M
Stockholders Equity	147.92M	177.84M	129.53M	148.34M	139.25M
Cash Flow
Free Cash Flow	0.00	-23.42M	31.53M	-34.48M	21.83M
Operating Cash Flow	-10.96M	-20.77M	33.76M	-31.67M	22.61M
Investing Cash Flow	0.00	-1.84M	46.22M	-46.30M	-4.05M
Financing Cash Flow	0.00	47.54M	-32.86M	44.15M	16.55M

Carry Wealth Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 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:0643, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.24, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.98 is Neutral, neither overbought nor oversold. The STOCH value of 51.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0643.

Carry Wealth Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2020	79 Outperform	$252.73B	15.06	28.11%	2.60%	11.51%	47.88%
2669	76 Outperform	$18.29B	11.17		3.41%	―	―
0382	75 Outperform	HK$1.97B	2.86	15.41%	11.98%	9.66%	-8.34%
1138	75 Outperform	$47.62B	7.38	9.73%	9.36%	3.41%	―
Sector *	65 Neutral	$26.93B	15.26	-4.27%	3.16%	1.02%	1.89%
0643	46 Neutral	HK$260.96M	―	-20.75%	―	34.81%	-272.28%
0332	33 Underperform	HK$144.00M	―	-2465.61%	―	-68.87%	-635.59%

Carry Wealth Holdings Limited Corporate Events

Carry Wealth Holdings Announces Executive Resignation and AGM Resolution Withdrawal

Carry Wealth Holdings Limited announced the resignation of Mr. Shen Peng as an executive director and co-chairman of the board, effective April 30, 2025, due to other work arrangements. Following his resignation, the ordinary resolution for his re-election will be withdrawn from the upcoming annual general meeting agenda, but all other resolutions will proceed as planned.

Carry Wealth Holdings Limited Announces Board Restructuring

Carry Wealth Holdings Limited has announced changes to its Board of Directors and committee memberships, effective from April 30, 2025. The company has appointed Mr. Zhang ZiXing as Chairman, with Mr. Choi Tan Yee and Mr. Cheng Wai Hei taking on key roles in various committees. These changes are likely to influence the company’s strategic direction and governance, potentially impacting its market positioning and stakeholder relationships.

Carry Wealth Holdings Limited Announces 2025 Annual General Meeting

Carry Wealth Holdings Limited has announced its annual general meeting scheduled for June 13, 2025, where shareholders will discuss and vote on several key resolutions. These include the adoption of the company’s audited financial statements for 2024, re-election of directors, re-appointment of the auditor, and authorization for directors to manage share allotments. This meeting is significant as it will shape the company’s governance and operational strategies for the coming year, potentially impacting its market position and stakeholder interests.

Carry Wealth Holdings Limited Appoints New Co-Chairman

Carry Wealth Holdings Limited has announced the appointment of Mr. Zhang ZiXing as an executive director and co-chairman of the board, effective April 11, 2025. Mr. Zhang brings over 13 years of experience in business and brand management, with expertise in corporate strategic investment planning and business incubation. His appointment is seen as a strategic move to strengthen the company’s leadership and potentially enhance its market positioning. Mr. Zhang’s remuneration is set at HK$50,000 per month, reflecting his qualifications and experience.

Carry Wealth Holdings Updates Board of Directors and Committees

Carry Wealth Holdings Limited has announced the updated composition of its Board of Directors and the membership of its four Board committees, effective from April 11, 2025. The Board includes both executive and independent non-executive directors, with Mr. Shen Peng and Mr. Zhang ZiXing serving as Co-Chairmen. The announcement outlines the roles and responsibilities of each director within the Audit, Remuneration, Nomination, and Investment Committees, which may impact the company’s governance and strategic direction.

Carry Wealth Holdings Limited Reports Increased Revenue Amid Strategic Shift

Carry Wealth Holdings Limited reported an increase in revenue and gross profit for the year ended December 31, 2024, attributed to higher customer orders and sales volume. However, the company faced a significant loss due to rising operational costs, inflation, and supply chain challenges. The strategic decision to relocate production overseas, primarily to subcontractors in Cambodia and Indonesia, resulted in a substantial shift in production contributions. The securities investment segment remained conservative, with no fair value change recorded.

Carry Wealth Holdings Announces Board Restructuring

Carry Wealth Holdings Limited has announced changes to its Board of Directors and committee memberships, effective from March 27, 2025. The company has appointed Mr. Shen Peng as the Chairman and Mr. Choi Tan Yee as an Executive Director, with Mr. Cheng Wai Hei serving as the Lead Independent Director. The Board will oversee four committees: Audit, Remuneration, Nomination, and Investment, with specific directors assigned to each. These changes are likely to impact the company’s governance structure, potentially influencing its strategic direction and stakeholder engagement.

Carry Wealth Holdings Issues Profit Warning Amid Increased Costs

Carry Wealth Holdings Limited has issued a profit warning, indicating that despite an expected increase in revenue, the company anticipates a significant loss of approximately HK$33.8 million for the year ending December 2024, compared to a loss of HK$8.9 million in the previous year. This projected loss is primarily due to one-off redundancy costs and idle costs related to the cessation of production at the Heshan factory, increased depreciation expenses from new assets, and higher handling fees paid to subcontractors due to increased overseas production volumes.

Carry Wealth Holdings to Review Annual Results and Dividend Proposal

Carry Wealth Holdings Limited has announced that its board of directors will meet on March 27, 2025, to review and approve the annual financial results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend, which could impact shareholder returns and the company’s financial strategy.

Carry Wealth Holdings Addresses Compliance Breach with Remedial Measures

Carry Wealth Holdings Limited recently encountered a compliance issue when a subsidiary’s Pledge Agreement was made without the Board’s approval. The agreement, involving a loan of approximately RMB37.7 million, was terminated to resolve non-compliance with the Hong Kong Listing Rules. The company is implementing remedial measures to enhance internal controls and improve corporate governance communication to prevent similar incidents.