World Houseware (Holdings) (0713) AI Stock Analysis

• Market Cap: HK$344.57M
• Dividend Yield: N/A
• Average Volume (3M): 306.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -23.38%
• EPS Growth: -35.88%
• Country: HK
• Employees: 492
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): -0.09
• Shares Outstanding: 792,117,430
• 10 Day Avg. Volume: 93,400
• 30 Day Avg. Volume: 306,133
• PEG Ratio: -0.02
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 1.52
• P/FCF Ratio: -11.61
• 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: 40 Neutral
• Price Target: HK$0.40 ▼(-1.25% Downside)

The overall stock score is heavily influenced by poor financial performance and valuation. The company's declining revenues, negative net income, and cash flow issues are significant concerns. Technical analysis also indicates bearish momentum, with the stock trading below key moving averages. The lack of earnings call and corporate events data means these factors do not contribute to the score.

Positive Factors

Low Leverage

Low leverage provides financial stability, reducing risk of insolvency and allowing flexibility in financial planning and investment.

Established Distribution Networks

Strong distribution networks enhance market reach and sales efficiency, supporting revenue stability and potential growth.

Diverse Product Range

A diverse product range mitigates risk by spreading revenue sources across different markets, enhancing resilience to sector-specific downturns.

Negative Factors

Declining Revenues

Declining revenues indicate weakening demand or competitive pressures, challenging the company's ability to sustain operations and growth.

Negative Cash Flow

Negative cash flow limits the company's ability to invest in growth, pay down debt, and manage operational expenses, posing long-term risks.

Decreasing Profit Margins

Shrinking profit margins suggest increasing cost pressures or pricing challenges, impacting profitability and financial health.

World Houseware (Holdings) Business Overview & Revenue Model

Company Description

World Houseware (Holdings) Limited, an investment holding company, manufactures and distributes household products, PVC pipes and fittings, and moulds in the People's Republic of China and the United States. The company engages in property holding and investment activities; provision of transportation services; and food waste recycling and reborn resources related businesses. It is also involved in the trading of building materials and supplies, and household products. World Houseware (Holdings) Limited was founded in 1968 and is headquartered in Kwai Chung, Hong Kong.

How the Company Makes Money

World Houseware generates revenue primarily through the sale of its diverse range of household products, which are sold both wholesale and directly to retailers. The company benefits from multiple revenue streams, including bulk orders to major retail chains, online sales through e-commerce platforms, and partnerships with distributors across different regions. Additionally, World Houseware often engages in product development collaborations and licensing agreements, which can provide supplementary income. Factors contributing to its earnings include economies of scale in manufacturing, effective supply chain management, and a strong branding strategy that resonates with consumers looking for reliable and innovative household solutions.

World Houseware (Holdings) Financial Statement Overview

Summary

The company is facing financial difficulties with declining revenues, negative net income, and cash flow constraints. Despite a low debt-to-equity ratio, the inability to generate positive cash flow and consistent losses pose significant risks.

Income Statement

The company has faced declining revenues and persistent losses over the years, with a significant revenue drop from 2020 to 2024. Gross profit margins have decreased from 20.48% in 2020 to 10.43% in 2024, reflecting cost pressures. Net income has been negative for the past three years, indicating profitability challenges.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.06 in 2024, indicating low leverage. However, stockholders' equity has declined, showing financial deterioration. The equity ratio stands at 42.28%, reflecting a decent equity buffer against total assets.

Cash Flow

The company's cash flow situation is concerning, with operating cash flow turning negative in recent years and no free cash flow generation in 2024. This indicates challenges in converting sales into cash and sustaining capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	275.15M	318.28M	380.63M	628.67M	878.03M	817.30M
Gross Profit	21.52M	33.21M	43.50M	47.42M	149.42M	167.43M
EBITDA	-49.01M	-44.20M	-102.26M	-126.86M	102.29M	162.89M
Net Income	-249.29M	-322.15M	-172.13M	-213.45M	44.02M	68.98M
Balance Sheet
Total Assets	2.51B	2.63B	3.06B	3.20B	3.78B	2.91B
Cash, Cash Equivalents and Short-Term Investments	420.15M	646.97M	710.12M	587.07M	843.43M	119.95M
Total Debt	56.03M	138.14M	138.02M	221.32M	290.06M	275.25M
Total Liabilities	1.45B	1.52B	1.61B	1.56B	1.84B	1.06B
Stockholders Equity	1.06B	1.11B	1.45B	1.64B	1.94B	1.85B
Cash Flow
Free Cash Flow	-19.27M	-41.63M	-34.98M	-106.76M	-158.53M	69.22M
Operating Cash Flow	-11.79M	-30.07M	13.16M	-60.84M	-134.66M	99.25M
Investing Cash Flow	-413.20M	88.64M	113.73M	56.15M	835.93M	-2.33M
Financing Cash Flow	-36.37M	-37.58M	-62.22M	-206.39M	10.94M	-19.74M

World Houseware (Holdings) Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.40
• 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:0713, the sentiment is Neutral. The current price of 0.4 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.43, and below the 200-day MA of 0.47, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.01 is Neutral, neither overbought nor oversold. The STOCH value of 72.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0713.

World Houseware (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8646	62 Neutral	HK$130.45M	1.92	11.61%	―	5.34%	43.91%
1897	53 Neutral	HK$192.82M	59.38	0.62%	2.34%	-48.30%	-75.98%
1937	52 Neutral	HK$188.00M	97.50	0.58%	―	-10.27%	-84.38%
1653	49 Neutral	HK$690.51M	-138.30	-3.68%	―	-0.28%	-469.70%
0713	40 Neutral	HK$344.57M	-1.35	-21.28%	―	-23.38%	-35.88%
1592	38 Underperform	HK$42.28M	-0.38	―	―	1.43%	-83.97%

World Houseware (Holdings) Corporate Events

World Houseware Announces 2024 Share Option Scheme Details

World Houseware (Holdings) Limited has released supplemental information regarding its 2024 Annual Report, specifically concerning its share option schemes. The company disclosed that during the year ended December 31, 2024, a total of 5,590,000 share options were granted, representing approximately 0.71% of the weighted average number of issued ordinary shares. This information provides stakeholders with insights into the company’s equity compensation strategy and its potential impact on shareholder value.

The most recent analyst rating on (HK:0713) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on World Houseware (Holdings) stock, see the HK:0713 Stock Forecast page.