Future Bright Holdings (0703) AI Stock Analysis

• Market Cap: HK$97.20M
• Dividend Yield: N/A
• Average Volume (3M): 173.73K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.26
• Revenue Growth: 0.41%
• EPS Growth: -43.14%
• Country: HK
• Employees: 629
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.01
• Shares Outstanding: 694,302,400
• 10 Day Avg. Volume: 51,600
• 30 Day Avg. Volume: 173,733
• PEG Ratio: -0.18
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 1.04
• 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: 52 Neutral
• Price Target: HK$0.15 ▲(11.54% Upside)

The overall stock score is primarily influenced by the company's weak financial performance, particularly in cash flow generation and profitability. Technical analysis suggests a neutral trend with weak momentum. The stock's valuation appears favorable due to a low P/E ratio, but the absence of a dividend yield and earnings call data limits further insights.

Positive Factors

Strategic Partnerships

Strategic partnerships improve supply chain efficiency, reducing operational costs and supporting long-term profitability.

Market Research and Development

Investment in R&D for menu innovation can lead to increased customer retention and sales growth, strengthening market position.

Debt-to-Equity Ratio Improvement

Improved debt-to-equity ratio indicates better financial management and reduced leverage, enhancing financial stability.

Negative Factors

Declining Revenue

Declining revenue suggests challenges in maintaining market share and customer demand, impacting long-term growth prospects.

Cash Flow Challenges

Significant drop in cash flow raises concerns about liquidity and the ability to sustain operations without external financing.

Profitability Decline

Declining profitability margins indicate reduced operational efficiency and challenges in maintaining competitive pricing.

Future Bright Holdings Business Overview & Revenue Model

Company Description

Future Bright Holdings Limited, an investment holding company, engages in the food and catering business in Hong Kong, Macau, Mainland China, and Taiwan. The company operates through three segments: Food and Catering, Food Souvenir, and Property Investment. It is involved in the sale of food souvenirs, such as festival food products; and operation of restaurants, food processing centers, and coffee shops. The company also provides administrative and supporting services; invests in and leases properties; and trades in food products. As of December 31, 2021, it operated 29 restaurants, including 17 self-owned restaurants and 12 franchise restaurants; and 19 food court counters. Future Bright Holdings Limited was incorporated in 2001 and is headquartered in Sheung Wan, Hong Kong.

How the Company Makes Money

Future Bright Holdings generates revenue primarily through the operation of its restaurant and fast food chains, where it earns income from food and beverage sales. Additionally, the company may engage in wholesale distribution of food products, contributing to its revenue streams. Key revenue sources include both dine-in and takeaway services, as well as catering services for events and corporate clients. Strategic partnerships with suppliers and distributors enhance its supply chain efficiency and reduce operational costs, further bolstering profitability. The company also invests in market research and development to innovate its menu offerings, which can lead to increased customer retention and sales growth.

Future Bright Holdings Financial Statement Overview

Summary

Future Bright Holdings faces significant challenges in profitability and cash flow generation, with declining revenue, margins, and cash flow in 2024. The debt-to-equity ratio shows slight improvement, but the company struggles with reduced net income and operational efficiency. The significant decrease in operating and free cash flow points to potential liquidity issues.

Income Statement

Future Bright Holdings has experienced declining revenue growth with total revenue decreasing from HKD 491.11 million in 2023 to HKD 480.04 million in 2024. The gross profit margin declined to 22.8% in 2024 from 25.9% in 2023. Net profit margin also decreased to 1.25% from 9.89%, indicating weakening profitability. The EBIT margin dropped from 11.65% to 7.74%, while the EBITDA margin fell from 25.54% to 13.92%, reflecting reduced operational efficiency.

Balance Sheet

The debt-to-equity ratio improved slightly from 1.23 in 2023 to 1.12 in 2024, suggesting a slight reduction in leverage. However, the return on equity (ROE) decreased significantly from 13.02% in 2023 to 1.58% in 2024, indicating reduced profitability for shareholders. The equity ratio remained stable at approximately 39.6% in 2024, slightly improved from 37.2% in 2023, showing moderate financial stability.

Cash Flow

The operating cash flow dropped significantly from HKD 124.56 million in 2023 to zero in 2024, raising concerns about cash generation capability. The free cash flow also decreased from HKD 112.69 million to zero, indicating potential liquidity issues. The lack of positive free cash flow and operating cash flow suggests challenges in sustaining operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	485.75M	480.04M	491.11M	285.06M	475.42M	419.43M
Gross Profit	116.02M	109.43M	127.12M	-12.89M	12.31M	-95.58M
EBITDA	72.15M	66.83M	125.47M	-46.52M	34.96M	51.71M
Net Income	14.11M	6.01M	48.59M	-125.61M	-72.95M	-120.94M
Balance Sheet
Total Assets	947.99M	958.62M	1.00B	949.94M	1.09B	1.29B
Cash, Cash Equivalents and Short-Term Investments	30.62M	32.80M	42.06M	26.07M	36.81M	65.85M
Total Debt	479.71M	424.55M	522.59M	422.08M	511.13M	608.74M
Total Liabilities	587.30M	608.73M	647.59M	654.43M	683.26M	802.47M
Stockholders Equity	387.85M	379.50M	373.16M	324.46M	431.55M	515.10M
Cash Flow
Free Cash Flow	79.86M	93.55M	112.69M	-34.23M	12.39M	-114.63M
Operating Cash Flow	91.62M	109.13M	124.56M	-21.51M	16.64M	-105.98M
Investing Cash Flow	-12.19M	-15.78M	-11.94M	-12.72M	-4.25M	10.27M
Financing Cash Flow	-76.25M	-102.42M	-96.54M	18.54M	-46.55M	-103.11M

Future Bright Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.13
• 50DMA: Negative
• 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:0703, the sentiment is Negative. The current price of 0.13 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.14, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 35.37 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0703.

Future Bright Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8495	54 Neutral	HK$138.24M	327.27	0.78%	―	-2.67%	22.22%
0703	52 Neutral	HK$97.20M	6.90	3.70%	―	0.41%	-43.14%
1443	50 Neutral	HK$107.90M	―	-48.91%	3.49%	-13.13%	-873.33%
1869	44 Neutral	HK$180.51M	-3.89	―	―	-18.92%	-2250.00%
8519	38 Underperform	HK$46.39M	-8.12	-350.87%	―	-5.22%	-7.65%

Future Bright Holdings Corporate Events

Future Bright Holdings Renews Lease for Ramen Restaurant in Kowloon

Future Bright Holdings Limited, through its wholly-owned subsidiary Bright Mark, has renewed its lease agreement for a property in Kowloon, Hong Kong, to continue operating a Japanese ramen restaurant. The lease, effective from February 2026 to February 2028, includes a monthly basic rent and a turnover rent based on gross takings, with additional costs for management fees, rates, and government rent. This transaction is classified as a discloseable transaction under the Listing Rules, requiring notification and announcement but not shareholder approval.

Future Bright Holdings Sees Significant Profit Growth in Q3 2025

Future Bright Holdings Limited reported an unaudited profit of HK$16.6 million for the third quarter of 2025, marking a significant increase from HK$7.3 million in the same period of 2024. This growth is attributed to increased turnover from higher visitor arrivals in Macau and Hong Kong, and profits from its food and catering, food souvenir, and property investment businesses. However, the company also recorded a net fair value loss of HK$3.5 million on its key investment property in Macau.

Future Bright Holdings Secures HK$20 Million Bank Guarantee Facility

Future Bright Holdings Limited announced that its subsidiary, Bright Gain Restaurant Company Limited, has entered into a bank guarantee facility agreement with Hang Seng Bank Limited, Macau Branch, for HK$20 million. The facility is contingent upon the controlling shareholder, Mr. Chan Chak Mo, maintaining at least a 37% equity interest in the company. A breach of this covenant could lead to the cancellation of the facility and immediate repayment of outstanding amounts, impacting the company’s financial obligations.

Future Bright Holdings Expands with New Lease for Cantonese Restaurant in Macau

Future Bright Holdings Limited, through its subsidiary Bright Gain, has entered into a lease agreement for a property in Macau to operate a casual Cantonese restaurant. The lease, which spans over six years, represents a discloseable transaction under the Hong Kong Listing Rules, reflecting the company’s strategic expansion in the catering sector.