China-Hongkong Photo Products Holdings Limited (1123) AI Stock Analysis

• Market Cap: HK$137.50M
• Dividend Yield: 8.62%
• Average Volume (3M): 107.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -8.31%
• EPS Growth: -108.70%
• Country: HK
• Employees: 583
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): <0.01
• Shares Outstanding: 1,185,318,400
• 10 Day Avg. Volume: 46,200
• 30 Day Avg. Volume: 107,733
• PEG Ratio: 0.53
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 2.58
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$0.12 ▼(-3.33% Downside)

The overall stock score reflects significant challenges in financial performance, with declining revenue and profitability being major concerns. Technical analysis indicates neutral momentum, while valuation is impacted by a negative P/E ratio, offset slightly by a high dividend yield. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Low Leverage

The company's low leverage indicates a conservative financial strategy, reducing the risk of financial distress and providing flexibility for future investments.

Strong Capital Base

A strong capital base ensures the company has a solid foundation to support operations and potential growth initiatives, enhancing long-term stability.

High Dividend Yield

A high dividend yield provides an attractive return to investors, potentially supporting stock price stability and investor confidence over the long term.

Negative Factors

Declining Revenue

Declining revenue growth indicates challenges in maintaining market share and competitiveness, which could impact long-term profitability and market position.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and potential pricing pressures, which could hinder the company's ability to generate sustainable profits.

Weak Cash Flow Generation

Weak cash flow generation limits the company's ability to invest in growth opportunities and meet financial obligations, posing risks to long-term liquidity and financial health.

China-Hongkong Photo Products Holdings Limited Business Overview & Revenue Model

Company Description

China-Hongkong Photo Products Holdings Limited, together with its subsidiaries, engages in marketing and distribution of photographic developing, processing, and printing products in Hong Kong. The company operates through Merchandise, Service, and Investment segments. It also retails and wholesales photographic merchandises, skincare products, consumer electronic products, and household appliances, as well as commercial and professional AV products. In addition, the company engages in the provision of technical services for photographic developing and processing products, and professional audio-visual advisory and custom design and installation services. Further, it holds and invests in properties; and provides installation service for household appliances, as well as photofinishing and imaging solutions. The company operates a retail chain under the Fotomax name that provides photographic developing and processing services; and sells skincare products through online platform. The company was founded in 1968 and is based in Tsuen Wan, Hong Kong. China-Hongkong Photo Products Holdings Limited is a subsidiary of Searich Group Limited.

How the Company Makes Money

China-Hongkong Photo Products Holdings Limited generates revenue through the sales of its photographic products, which include both traditional and digital imaging solutions. The company's revenue model is primarily based on direct sales to retail and wholesale customers, as well as potential partnerships with distributors and retailers. Key revenue streams include the sale of photographic films, printing materials, camera accessories, and possibly digital imaging products. Additionally, the company may benefit from strategic partnerships with other firms in the photography and imaging sectors, enhancing its market reach and sales opportunities.

China-Hongkong Photo Products Holdings Limited Financial Statement Overview

Summary

The company is experiencing declining revenue and profitability, with negative net profit margins and reduced EBIT and EBITDA margins. While the balance sheet shows low leverage, the negative return on equity and weakened cash flow generation pose concerns for financial health.

Income Statement

The company has experienced a decline in revenue growth, with a negative growth rate of -5.49% in the latest year. Gross profit margin remains stable at around 25.5%, but the net profit margin has turned negative, indicating a loss. EBIT and EBITDA margins have also decreased, reflecting reduced operational efficiency.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.099, indicating conservative leverage. However, return on equity has turned negative, suggesting inefficiencies in generating returns from equity. The equity ratio remains healthy, showing a strong capital base.

Cash Flow

Free cash flow has significantly decreased by 46.21%, impacting liquidity. The operating cash flow to net income ratio is below 1, indicating potential cash flow challenges. However, the free cash flow to net income ratio is relatively strong, suggesting some resilience in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.00B	1.00B	1.10B	1.08B	1.02B	916.75M
Gross Profit	255.65M	255.65M	279.14M	265.80M	221.84M	194.20M
EBITDA	48.54M	66.99M	90.78M	104.94M	83.28M	98.18M
Net Income	-2.32M	-2.32M	29.76M	40.81M	18.11M	33.63M
Balance Sheet
Total Assets	892.33M	892.33M	941.61M	913.41M	887.69M	870.75M
Cash, Cash Equivalents and Short-Term Investments	238.81M	238.81M	244.28M	235.92M	229.23M	282.66M
Total Debt	66.79M	66.79M	68.69M	55.01M	66.75M	69.04M
Total Liabilities	217.62M	217.62M	252.79M	234.70M	236.65M	226.96M
Stockholders Equity	674.89M	674.89M	688.95M	677.62M	651.82M	644.01M
Cash Flow
Free Cash Flow	53.22M	51.44M	68.86M	62.83M	6.73M	129.98M
Operating Cash Flow	70.61M	70.61M	93.33M	77.89M	16.02M	140.23M
Investing Cash Flow	-22.97M	-17.81M	-44.55M	-12.10M	19.33M	-11.26M
Financing Cash Flow	-62.24M	-62.24M	-63.32M	-57.11M	-62.42M	-48.55M

China-Hongkong Photo Products Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1123, 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 above the 200-day MA of 0.12, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1123.

China-Hongkong Photo Products Holdings Limited 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%
3830	53 Neutral	HK$64.00M	-9.20	-32.53%	―	-6.48%	-38.10%
1123	50 Neutral	HK$137.50M	-193.33	-0.11%	8.62%	-8.31%	-108.70%
8545	50 Neutral	HK$45.31M	-18.57	-1.26%	―	0.47%	-195.45%
1348	46 Neutral	HK$224.08M	-11.76	-50.25%	―	-61.76%	75.15%
6918	43 Neutral	HK$117.67M	-1.63	-19.89%	―	84.26%	44.41%
0765	40 Neutral	HK$147.12M	-7.67	-36.17%	―	-13.96%	64.58%

China-Hongkong Photo Products Holdings Limited Corporate Events

China-Hongkong Photo Reports Revenue Decline but Increased Profit

China-Hongkong Photo Products Holdings Limited reported a 5.6% decrease in revenue to HK$506 million for the six months ended 30 September 2025, though net profit attributable to shareholders increased to HK$8.7 million from HK$7.1 million in the previous period. Despite the revenue decline, the company’s financial position remains solid with cash and bank balances at HK$230 million, although the Board has decided not to recommend an interim dividend, indicating a cautious approach amidst the current market conditions.

China-Hongkong Photo Products Schedules Board Meeting for Interim Results

China-Hongkong Photo Products Holdings Limited has announced a board meeting scheduled for November 26, 2025, to review and approve the interim results for the six months ending September 30, 2025. This meeting will also consider the payment of an interim dividend and address other business matters, potentially impacting the company’s financial strategy and shareholder returns.