Allan International Holdings Limited (0684) AI Stock Analysis

• Market Cap: HK$229.81M
• Dividend Yield: 11.59%
• Average Volume (3M): 39.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 9.26%
• EPS Growth: -108.01%
• Country: HK
• Employees: 1,550
• Sector: Industrials
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.09
• Shares Outstanding: 333,054,530
• 10 Day Avg. Volume: 75,800
• 30 Day Avg. Volume: 39,200
• PEG Ratio: -0.54
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -24.09
• 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: 55 Neutral
• Price Target: ―

Allan International Holdings Limited scores a 55, reflecting significant financial challenges including declining revenue and negative profitability. The strong equity position provides some stability, but cash flow difficulties are a concern. Technical analysis offers a neutral outlook, while the high dividend yield is attractive despite a negative P/E ratio. Overall, the stock faces risks due to financial instability, but some aspects like low leverage and dividend yield provide potential positives.

Allan International Holdings Limited Business Overview & Revenue Model

Company Description

Allan International Holdings Limited, an investment holding company, manufactures and trades in household electrical appliances in Europe, Asia, the Americas, and internationally. The company offers food processors and mixers, juicing and blending products, deep frying products, kettles, and electric knives. It also engages in the manufacture and trade of plastic injection moulds and plastic parts; property investment and holding activities; and securities investment activities. The company was incorporated in 1992 and is headquartered in Chai Wan, Hong Kong.

How the Company Makes Money

Allan International Holdings Limited generates revenue primarily through the sale of its household electrical appliances. The company's key revenue streams include the manufacturing and distribution of kitchen appliances, such as blenders and kettles, personal care products like shavers and hairdryers, and audio products. The company may also engage in OEM (Original Equipment Manufacturing) and ODM (Original Design Manufacturing) services, producing goods for other brands, which allows it to leverage its manufacturing expertise and capacity. Significant partnerships with retailers and distributors, as well as a focus on expanding its global market reach, further contribute to its earnings.

Allan International Holdings Limited Financial Statement Overview

Summary

Allan International Holdings Limited faces significant financial challenges, with declining revenue, negative profitability, and cash flow difficulties. The company's strong equity position and low leverage provide some stability, but persistent losses and cash flow issues pose risks to its financial health. The focus should be on improving operational efficiency and reversing revenue and profit declines.

Income Statement

The company has experienced a consistent decline in revenue over the past few years, with TTM revenue at HK$484.8 million, down from HK$982.8 million in 2020. The gross profit margin is relatively low at 8.2%, and the net profit margin is negative at -14.3%, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational challenges. Overall, the income statement shows declining performance and profitability concerns.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.01, indicating low leverage. The equity ratio stands at 79.7%, showcasing a solid capital structure. However, return on equity is negative due to net losses, which is a concern for long-term sustainability. Overall, the balance sheet is stable with low leverage but impacted by negative profitability.

Cash Flow

The operating cash flow has turned negative at HK$-38.4 million, and free cash flow has also declined compared to previous periods. The free cash flow to net income ratio is negative, reflecting cash flow difficulties amidst losses. The operating cash flow to net income ratio is also negative, indicating challenges in converting sales into cash. The cash flow statement shows liquidity pressures and operational inefficiencies.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
484.42M	484.76M	413.33M	783.19M	909.47M	982.84M
	Gross Profit
38.34M	39.53M	16.73M	51.51M	153.06M	143.80M
	EBIT
-48.39M	-47.84M	-81.01M	-67.98M	37.72M	21.82M
	EBITDA
-46.64M	-69.17M	-52.05M	-7.69M	68.91M	4.30M
	Net Income Common Stockholders
-77.79M	-69.13M	-62.05M	-27.00M	46.40M	-18.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
405.33M	484.69M	563.14M	533.57M	662.01M	705.76M
	Total Assets
1.06B	1.09B	1.25B	1.41B	1.58B	1.47B
	Total Debt
8.10M	10.66M	15.79M	20.91M	26.04M	31.16M
	Net Debt
-101.94M	-163.89M	-170.79M	-390.46M	-494.73M	-388.23M
	Total Liabilities
262.78M	221.35M	241.54M	310.00M	378.93M	308.41M
	Stockholders Equity
800.59M	871.01M	1.01B	1.10B	1.20B	1.17B
Cash Flow		Free Cash Flow
-57.49M	-38.41M	52.23M	-43.90M	-24.59M	105.42M
	Operating Cash Flow
-56.02M	-38.41M	54.14M	-32.01M	-16.69M	117.92M
	Investing Cash Flow
41.34M	82.94M	-5.04M	13.76M	152.78M	-70.14M
	Financing Cash Flow
-80.65M	-55.78M	-12.28M	-93.26M	-35.68M	-22.92M

Allan International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.69
• 50DMA: Positive
• 100DMA: Positive
• 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:0684, the sentiment is Neutral. The current price of 0.69 is above the 20-day moving average (MA) of 0.68, above the 50-day MA of 0.66, and below the 200-day MA of 0.69, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.60 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0684.

Allan International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0229	67 Neutral	HK$421.11M	9.31	6.70%	19.05%	-21.06%	-33.38%
2381	65 Neutral	HK$198.00M	7.50	19.91%	10.10%	10.46%	26.92%
Sector *	64 Neutral	$10.24B	15.15	4.04%	2.02%	2.54%	-26.43%
6822	57 Neutral	HK$259.00M	11.86	3.83%	10.81%	20.66%	―
0684	55 Neutral	HK$229.81M	―	-8.80%	11.59%	9.26%	-108.01%
2127	41 Neutral	HK$76.58M	―	-38.40%	―	-72.73%	-764.81%
1715	39 Underperform	HK$108.23M	―	-71.41%	―	6.24%	50.07%

Allan International Holdings Limited Corporate Events

Allan International Holdings Limited Addresses Public Float Shortfall

Allan International Holdings Limited has announced that its public float remains below the required minimum of 25%, currently at approximately 24.04%. The company is exploring various options to restore its public float and is in discussions with its core connected persons. The company plans to publish its preliminary financial results for the year ended 31 March 2025 by the end of June 2025, and expects to complete necessary disposals by August 2025 to address the public float issue. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.

Allan International Holdings Faces Public Float Challenge

Allan International Holdings Limited is facing a challenge with its public float, which has fallen below the minimum prescribed percentage of 25% as required by the Listing Rules. The reduction in public float is attributed to on-market acquisition of shares by Mr. Webb David Michael and Preferable Situation Assets Limited, both of which are wholly owned by Mr. Webb. Currently, the public float stands at approximately 24.04%. The company is exploring options to restore the public float to the required level, including inviting core connected persons to dispose of shares or issuing new shares to the public.

Allan International Holdings Limited Announces Forfeiture of Unclaimed Dividends

Allan International Holdings Limited has announced the forfeiture of unclaimed dividends declared on or before 28 June 2018, which will revert to the company if not claimed by 3 April 2025. Shareholders are advised to contact the company’s Hong Kong branch share registrar to claim their dividends before the deadline.

Allan International Announces Change in HK Share Registrar

Allan International Holdings Limited has announced a change in its Hong Kong branch share registrar and transfer office, effective from 1 March 2025. The new registrar will be Tricor Investor Services Limited. This change implies that any applications for share transfer registration will need to be directed to Tricor from the mentioned date. The transition marks an operational update that may affect stakeholders involved in share transactions.