Future Bright Holdings (0703) AI Stock Analysis

• Market Cap: HK$81.93M
• Dividend Yield: N/A
• Average Volume (3M): 114.33K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.19
• Revenue Growth: -2.26%
• EPS Growth: -87.71%
• Country: HK
• Employees: 629
• Sector: Services
• Sector Strength: N/A
• Industry: Restaurants
• EPS (TTM): <0.01
• Shares Outstanding: 694,302,400
• 10 Day Avg. Volume: 63,000
• 30 Day Avg. Volume: 114,333
• PEG Ratio: -0.19
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.91
• 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

The overall stock score for Future Bright Holdings reflects significant financial performance challenges, including declining profitability and cash flow generation. The technical analysis indicates bearish momentum, contributing to the cautious outlook. While the valuation is moderate, the absence of a dividend yield reduces its appeal. Strategic improvements are necessary to enhance financial health and stock performance.

Future Bright Holdings Business Overview & Revenue Model

Company Description

Future Bright Holdings Limited (0703) is a Hong Kong-based investment holding company primarily engaged in the food and beverage industry. The company operates through several segments, including food and catering services, food souvenir manufacturing, and sale of food products. It manages a variety of restaurant brands and dining concepts, offering diverse culinary experiences across different cuisines. Additionally, the company is involved in the retail and wholesale of food souvenirs and products, contributing to its diversified business portfolio.

How the Company Makes Money

Future Bright Holdings makes money primarily through its operations in the food and beverage sector. The company generates revenue from its chain of restaurants, which offer a wide range of dining options and cater to various customer preferences. This segment includes revenue from in-store dining, takeout, and delivery services. Another significant revenue stream comes from the manufacturing and sale of food souvenirs, which are popular among tourists and locals alike. The company also engages in the retail and wholesale of food products, expanding its market reach and customer base. Partnerships with local and international food brands enhance its product offerings and contribute to its earnings. Furthermore, the company's strategic location in Macau and Hong Kong, areas known for high tourist traffic, provides additional opportunities for revenue generation through its hospitality and food services.

Future Bright Holdings Financial Statement Overview

Summary

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

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
480.04M	491.11M	285.06M	475.42M	419.43M
	Gross Profit
109.43M	127.12M	-12.89M	12.31M	-95.58M
	EBIT
37.15M	57.20M	-87.65M	-87.80M	-223.27M
	EBITDA
66.83M	125.47M	-46.52M	34.96M	51.71M
	Net Income Common Stockholders
6.01M	48.59M	-125.61M	-72.95M	-120.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.80M	42.06M	27.24M	43.19M	75.87M
	Total Assets
958.62M	1.00B	949.94M	1.09B	1.29B
	Total Debt
424.55M	458.61M	422.08M	487.30M	601.92M
	Net Debt
391.75M	416.58M	394.88M	444.15M	526.10M
	Total Liabilities
608.73M	647.59M	654.43M	683.26M	802.47M
	Stockholders Equity
379.50M	373.16M	324.46M	431.55M	515.10M
Cash Flow		Free Cash Flow
0.00	112.69M	-34.23M	12.39M	-114.63M
	Operating Cash Flow
87.51M	124.56M	-21.51M	16.64M	-105.98M
	Investing Cash Flow
0.00	-11.94M	-12.72M	-4.25M	-8.74M
	Financing Cash Flow
0.00	-96.54M	18.54M	-46.55M	-103.11M

Future Bright Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 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 0.12 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.12, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 39.14 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 *	58 Neutral	$967.62M	6.66	2.23%	3.92%	10.92%	-79.06%
0868	58 Neutral	$33.33B	8.90	17.66%	8.93%	5.12%	46.63%
0336	57 Neutral	$8.49B	68.85	-3.15%	0.52%	0.17%	-260.67%
0703	47 Neutral	HK$81.93M	13.72	1.60%	―	-2.26%	-87.71%
1271	44 Neutral	HK$2.81B	11.72	8.13%	4.55%	271.05%	―
0138	37 Underperform	HK$134.37M	―	-56.45%	―	-24.44%	36.96%
0332	33 Underperform	HK$130.91M	―	-20.76%	―	-68.87%	-635.59%

Future Bright Holdings Corporate Events

Future Bright Holdings Announces AGM and Key Resolutions

Future Bright Holdings Limited, listed on the Hong Kong Stock Exchange, has announced its upcoming Annual General Meeting (AGM) scheduled for June 9, 2025. The meeting will address several key resolutions, including the re-election of executive directors, the appointment of auditors, and the authorization for the board to manage directors’ remuneration. Additionally, the company seeks approval to issue new shares, which could impact its market positioning by potentially increasing its capital base.

Future Bright Holdings Reports Significant Profit Decline for 2024

Future Bright Holdings Limited announced its annual results for the year ended December 31, 2024, reporting a decrease in turnover by 2.3% to HK$480,035,000 and a significant drop in profit attributable to owners by 87.7% to HK$6,010,000. The company’s financial performance was impacted by increased direct operating expenses and finance costs, resulting in a decline in gross operating profit and EBITDA. Despite these challenges, the total assets to total liabilities ratio improved slightly, indicating a stable financial structure. The announcement highlights the need for strategic adjustments to enhance profitability and maintain competitive positioning in the market.

Future Bright Holdings Issues Profit Warning Amid Declining Profits

Future Bright Holdings Limited has issued a profit warning for the year ended December 31, 2024, reporting a significant decline in profits compared to the previous year. The company attributes this downturn to decreased turnover, increased operating expenses, and losses in its food and catering business, despite a rise in visitor arrivals. The company also faced a net fair value loss on its key investment property, further impacting its financial performance.

Future Bright Holdings Announces Board Meeting for Annual Results

Future Bright Holdings Limited, a company incorporated in Bermuda, has announced a board meeting scheduled for March 26, 2025, in Hong Kong. The meeting will focus on approving the annual results for the year ending December 31, 2024, considering the payment of a final dividend, and addressing other business matters. This announcement is significant as it outlines key financial decisions that may impact the company’s stakeholders, including potential dividend payouts.