Mainland Headwear Holdings (1100) AI Stock Analysis

• Market Cap: HK$600.83M
• Dividend Yield: 7.14%
• Average Volume (3M): 24.82K
• Price to Earnings (P/E): 10.5
• Beta (1Y): -0.04
• Revenue Growth: 3.91%
• EPS Growth: -51.72%
• Country: HK
• Employees: 8,200
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.13
• Shares Outstanding: 429,164,460
• 10 Day Avg. Volume: 22,600
• 30 Day Avg. Volume: 24,825
• PEG Ratio: -0.30
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.76
• 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: 63 Neutral
• Price Target: HK$1.50 ▲(7.14%Upside)

Mainland Headwear Holdings' stock is characterized by a stable financial base but faces challenges in profitability and cash flow management. Despite these challenges, the stock offers attractive valuation metrics, including a low P/E ratio and high dividend yield, making it appealing for value investors. The technical indicators suggest no significant momentum, indicating a need for cautious optimism.

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 company faces challenges in maintaining profitability and cash flow consistency amidst competitive pressures, with fluctuating revenue and profit margins. The balance sheet is stable, but cash flow shows volatility and potential liquidity risks.

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
EBITDA	210.98M	278.82M	354.76M	262.86M	139.38M
Net Income	57.07M	117.95M	195.39M	128.08M	45.90M
Balance Sheet
Total Assets	1.94B	1.79B	1.96B	1.67B	1.43B
Cash, Cash Equivalents and Short-Term Investments	214.72M	331.02M	275.28M	222.80M	234.27M
Total Debt	259.77M	215.47M	310.77M	317.75M	337.35M
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: Neutral
• Last Price: 1.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 1.4 is above the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.37, and below the 200-day MA of 1.48, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$302.38M	4.70	23.19%	21.62%	14.78%	56.67%
1731	74 Outperform	HK$918.40M	3.94	18.71%	14.63%	16.66%	99.90%
1100	63 Neutral	HK$600.83M	10.53	5.12%	7.14%	3.91%	-51.72%
Sector *	58 Neutral	HK$11.83B	7.47	-17.93%	9.25%	-1.38%	-33.09%
1023	55 Neutral	HK$500.61M	5.10	-1.08%	11.54%	-4.68%	-112.44%
2033	54 Neutral	HK$699.74M	61.82	0.49%	2.06%	-16.46%	-87.89%
1842	49 Neutral	HK$84.00M	―	-3.32%	―	5.42%	-511.11%

Mainland Headwear Holdings Corporate Events

Mainland Headwear Holdings Announces Board Composition

Mainland Headwear Holdings Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides clarity on the leadership structure, which is crucial for stakeholders to understand the company’s governance and strategic direction.

Mainland Headwear Announces Key Board Changes to Enhance Governance

Mainland Headwear Holdings Limited has announced changes in its Nomination Committee and the designation of a new Lead Independent Non-Executive Director, effective June 30, 2025. These changes are in response to the amended Corporate Governance Code and are aimed at enhancing the company’s governance practices, board effectiveness, and diversity, thereby potentially improving its overall performance.

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.