Mainland Headwear Holdings (1100) AI Stock Analysis

• Market Cap: HK$575.08M
• Dividend Yield: 7.46%
• Average Volume (3M): 57.30K
• Price to Earnings (P/E): 10.1
• Beta (1Y): -0.03
• Revenue Growth: 3.91%
• EPS Growth: -51.72%
• Country: HK
• Employees: 8,200
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.13
• Shares Outstanding: 429,164,460
• 10 Day Avg. Volume: 24,526
• 30 Day Avg. Volume: 57,298
• PEG Ratio: 0.08
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.77
• 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: 60 Neutral
• Price Target: HK$1.50 ▲(11.94%Upside)

Mainland Headwear Holdings faces significant challenges in financial performance, particularly in profitability and cash flow consistency, which weigh heavily on the stock's score. The technical analysis suggests a bearish trend, while the valuation appears reasonable with a strong dividend yield. Strengthening financial health and reversing bearish momentum are key to improving the overall score.

Mainland Headwear Holdings Business Overview & Revenue Model

Company Description

Mainland Headwear Holdings Limited (1100) is a leading manufacturer and distributor of headwear products, primarily focusing on the design, production, and sale of various types of hats and caps. The company operates within the manufacturing sector and serves a diverse range of customers, including prominent global brands, sports teams, and retail chains. With a commitment to quality and innovation, Mainland Headwear provides customized solutions to meet the unique needs of its clients.

How the Company Makes Money

Mainland Headwear Holdings generates revenue through the production and sale of headwear products. The company operates manufacturing facilities where it designs and produces a wide range of hats and caps, catering to both fashion and functional purposes. A significant portion of its revenue comes from contracts with well-known international brands and sports franchises, which rely on Mainland Headwear for high-quality, custom-designed products. Additionally, the company may engage in licensing agreements and partnerships that allow it to expand its product offerings and market reach. The company's ability to maintain strong relationships with key clients and its reputation for delivering quality products are critical factors contributing to its financial success.

Mainland Headwear Holdings Financial Statement Overview

Summary

The income statement reveals challenges in revenue and net profit margins, indicating competitive pressures and reduced operational efficiency. The balance sheet is stable with moderate leverage, but cash flow volatility and liquidity risks are concerning.

Income Statement

In recent years, the company has experienced fluctuating revenue and profit margins. The gross profit margin for the latest year is 30.9%, reflecting competitive pricing pressure. The net profit margin decreased significantly to 3.9%, indicating challenges in maintaining net profitability. Revenue has seen a slight decline, suggesting market challenges or competition. EBIT and EBITDA margins have also decreased, showing reduced operational efficiency.

Balance Sheet

The company's financial structure is relatively strong, with a debt-to-equity ratio of 0.23, indicating moderate leverage. Return on equity is 5.1%, which is stable but could be improved. The equity ratio is 57.4%, demonstrating a solid capital base. Overall, the balance sheet reflects stability and prudent financial management, with some room for enhancing returns.

Cash Flow

Free cash flow has shown volatility, with a recent decline due to reduced operating cash flow and capital expenditure adjustments. The operating cash flow to net income ratio is low due to zero operating cash flow, posing a potential liquidity risk. The cash flow statement suggests challenges in generating consistent cash flow, impacting the company's ability to finance operations and growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.47B	1.42B	1.87B	1.60B	1.05B
	Gross Profit
455.48M	476.36M	637.30M	479.22M	318.69M
	EBIT
113.00M	190.20M	264.06M	181.23M	63.85M
	EBITDA
210.98M	278.82M	354.76M	262.86M	139.38M
	Net Income Common Stockholders
57.07M	117.95M	195.39M	128.08M	45.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
214.72M	331.02M	275.28M	222.80M	234.27M
	Total Assets
1.94B	1.79B	1.96B	1.67B	1.43B
	Total Debt
259.77M	215.47M	310.77M	317.75M	337.35M
	Net Debt
80.13M	-109.57M	63.82M	118.86M	117.88M
	Total Liabilities
765.58M	625.42M	889.33M	767.40M	645.09M
	Stockholders Equity
1.12B	1.11B	1.03B	876.91M	770.47M
Cash Flow		Free Cash Flow
-58.13M	113.80M	167.91M	66.22M	99.92M
	Operating Cash Flow
152.66M	349.29M	245.98M	88.16M	110.29M
	Investing Cash Flow
-254.90M	-143.23M	-104.30M	-47.11M	11.26M
	Financing Cash Flow
-34.80M	-132.93M	-86.34M	-63.14M	-15.71M

Mainland Headwear Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.34
• 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:1100, the sentiment is Negative. The current price of 1.34 is above the 20-day moving average (MA) of 1.34, below the 50-day MA of 1.38, and below the 200-day MA of 1.49, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.95 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1100.

Mainland Headwear Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2683	78 Outperform	HK$298.30M	8.63	12.85%	21.92%	14.78%	56.67%
1731	70 Outperform	HK$784.00M	3.37	18.71%	10.00%	16.66%	99.90%
Sector *	65 Neutral	$8.75B	15.13	4.69%	4.84%	3.64%	-2.51%
1100	60 Neutral	HK$575.08M	10.08	5.12%	7.46%	3.91%	-51.72%
1023	58 Neutral	HK$481.35M	5.10	-1.08%	12.00%	-4.68%	-112.44%
2033	56 Neutral	HK$668.87M	59.09	0.49%	2.15%	-16.46%	-87.89%
1842	46 Neutral	HK$72.00M	―	-3.32%	―	5.42%	-511.11%

Mainland Headwear Holdings Corporate Events

Mainland Headwear’s AGM Resolutions Passed Unanimously

Mainland Headwear Holdings Limited announced that all ordinary resolutions proposed at their Annual General Meeting (AGM) on May 23, 2025, were successfully passed. The resolutions included the approval of financial statements, declaration of a final dividend, re-election of directors, and granting mandates for share issuance and repurchase. This outcome reflects strong shareholder support and positions the company to continue its strategic initiatives, potentially enhancing its market position and shareholder value.

Mainland Headwear Holdings Announces 2025 Annual General Meeting

Mainland Headwear Holdings Limited has announced its upcoming annual general meeting scheduled for May 23, 2025, in Hong Kong. Key agenda items include the consideration of audited financial statements, the declaration of a final dividend of 5 HK cents per share, the re-election of directors, and the authorization of the board to fix directors’ and auditors’ remuneration. Additionally, a resolution will be considered to authorize the directors to manage the company’s share capital, including the allotment and issuance of additional shares, which could impact the company’s market positioning and shareholder value.

Mainland Headwear Holdings Announces Final Dividend for 2024

Mainland Headwear Holdings Limited, a company listed on the Hong Kong Stock Exchange, has announced a final ordinary cash dividend of HKD 0.05 per share for the financial year ending December 31, 2024. Shareholders are expected to approve this dividend on May 23, 2025, with the payment scheduled for June 20, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may impact investor sentiment positively.

Mainland Headwear Reports Decreased Profits for 2024

Mainland Headwear Holdings Limited announced its annual financial results for the year ended December 31, 2024, reporting a decrease in profit compared to the previous year. The company faced a decline in gross profit and net profit, with revenue slightly increasing but offset by higher costs and expenses, impacting its overall financial performance and stakeholder returns.