Allan International Holdings Limited (0684) AI Stock Analysis

• Market Cap: HK$199.83M
• Dividend Yield: 25%
• Average Volume (3M): 24.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: -4.04%
• EPS Growth: -39.02%
• Country: HK
• Employees: 1,550
• Sector: Industrials
• Sector Strength: 74
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.20
• Shares Outstanding: 333,054,530
• 10 Day Avg. Volume: 45,800
• 30 Day Avg. Volume: 24,800
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$0.50
• Price Target Upside: -16.67% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: HK$0.50 ▼(-16.67% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, with declining revenues and profitability. The technical analysis indicates a neutral trend, while the high dividend yield offers some appeal. However, the negative P/E ratio and financial challenges weigh heavily on the stock's attractiveness.

Allan International Holdings Limited Business Overview & Revenue Model

Company Description

Allan International Holdings Limited (0684) is a Hong Kong-based company engaged primarily in the manufacturing and selling of high-quality electronic accessories and components. The company operates in various sectors, including consumer electronics, telecommunications, and industrial applications. Its core products include power supplies, audio-visual equipment, and consumer electronic accessories, catering to both domestic and international markets.

How the Company Makes Money

Allan International Holdings Limited generates revenue primarily through the manufacture and sale of electronic components and accessories. The company's revenue model is driven by direct sales to both original equipment manufacturers (OEMs) and end consumers, allowing it to capture a wide market segment. Key revenue streams include product sales from its extensive range of electronic accessories, which are often sold under private labels or branded under its own name. Additionally, the company benefits from strategic partnerships with major electronics brands, enhancing its distribution capabilities and market presence. Factors contributing to its earnings include economies of scale in production, a diversified product portfolio, and ongoing demand for electronic accessories in rapidly growing markets.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	484.42M	465.17M	484.76M	413.33M	783.19M	909.47M
Gross Profit	38.34M	11.63M	39.53M	16.73M	51.51M	153.06M
EBITDA	-46.64M	-91.84M	-69.17M	-52.05M	-7.69M	68.91M
Net Income	-77.79M	-96.14M	-69.13M	-62.05M	-27.00M	46.40M
Balance Sheet
Total Assets	1.06B	937.61M	1.09B	1.25B	1.41B	1.58B
Cash, Cash Equivalents and Short-Term Investments	405.33M	373.39M	484.69M	563.14M	533.57M	662.01M
Total Debt	8.10M	5.54M	10.66M	15.79M	20.91M	26.04M
Total Liabilities	262.78M	220.28M	221.35M	241.54M	310.00M	378.93M
Stockholders Equity	800.59M	717.33M	871.01M	1.01B	1.10B	1.20B
Cash Flow
Free Cash Flow	-57.49M	-64.30M	-38.41M	52.23M	-43.90M	-24.59M
Operating Cash Flow	-56.02M	-62.53M	-38.41M	54.14M	-32.01M	-16.69M
Investing Cash Flow	41.34M	10.78M	82.94M	-5.04M	13.76M	152.78M
Financing Cash Flow	-80.65M	-62.18M	-55.78M	-12.28M	-93.26M	-35.68M

Allan International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.60
• 50DMA: Positive
• 100DMA: Negative
• 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 Positive. The current price of 0.6 is above the 20-day moving average (MA) of 0.60, above the 50-day MA of 0.60, and below the 200-day MA of 0.64, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.04 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$471.25M	9.26	7.53%	13.62%	-12.47%	-26.29%
2381	65 Neutral	HK$208.00M	8.32	18.10%	9.80%	10.65%	25.96%
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
6822	59 Neutral	HK$297.50M	13.78	-4.25%	9.41%	8.85%	-18.82%
0684	44 Neutral	HK$199.83M	―	-12.11%	25.00%	-4.04%	-39.02%
2127	41 Neutral	HK$76.58M	―	-38.40%	―	-72.73%	-764.81%
1715	39 Underperform	HK$120.85M	―	-39.50%	―	-32.54%	71.35%

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.