Embry Holdings Limited (1388) AI Stock Analysis

• Market Cap: HK$183.75M
• Dividend Yield: N/A
• Average Volume (3M): 42.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -10.08%
• EPS Growth: -417.56%
• Country: HK
• Employees: 3,949
• Sector: Industrials
• Sector Strength: 85
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.88
• Shares Outstanding: 422,416,630
• 10 Day Avg. Volume: 17,100
• 30 Day Avg. Volume: 42,000
• PEG Ratio: -0.06
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.17
• 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: 44 Neutral
• Price Target: ―

Embry Holdings is struggling with significant financial performance challenges, including negative earnings and cash flow issues. Technical analysis indicates weak momentum and a bearish trend, while valuation is hindered by a negative P/E ratio and lack of dividends. The company's financial health and stock performance are under pressure, necessitating improvements in operations and cash flow generation.

Embry Holdings Limited Business Overview & Revenue Model

Company Description

Embry Holdings Limited (1388) is a renowned company in the apparel industry, primarily focused on the design, manufacture, and retail of lingerie, sleepwear, and swimwear. The company has established a strong presence in the Chinese market with its diverse range of high-quality products catering to different consumer segments. Embry Holdings Limited operates several well-known brands, each targeting specific market niches, offering products that emphasize comfort, style, and quality.

How the Company Makes Money

Embry Holdings Limited generates revenue through multiple streams, primarily from the sale of its products across various retail channels. These channels include owned retail stores, franchised outlets, and online platforms, allowing the company to reach a wide customer base. The company also benefits from its strategic branding and marketing efforts, which help maintain its competitive positioning in the market. Significant revenue contributions come from its flagship brands, which are tailored to meet the needs and preferences of different consumer groups. Additionally, Embry Holdings Limited may engage in strategic partnerships and collaborations to expand its market presence and enhance its product offerings, although specific partnership details are not provided.

Embry Holdings Limited Financial Statement Overview

Summary

Embry Holdings faces significant challenges with declining revenue and negative earnings, reflected in the low income statement score. The balance sheet is moderately leveraged and relatively stable, though stockholders' equity is decreasing. Cash flow constraints are evident, with declining free cash flow and zero operating cash flow, indicating potential liquidity issues.

Income Statement

The company has faced declining revenue over recent years, with a significant drop from 2019 to 2024. Gross profit margins have decreased slightly, but the company is struggling with negative EBIT and net income, indicating operational challenges and inefficiencies. Despite a previously positive EBITDA margin, recent years have shown negative figures, reflecting deteriorating profitability.

Balance Sheet

Embry Holdings maintains a solid equity base, with a debt-to-equity ratio indicating moderate leverage. However, the decreasing stockholders' equity and total assets over time suggest a potential decline in financial stability. Despite this, the equity ratio remains healthy, reflecting a relatively stable financial position.

Cash Flow

Free cash flow has shown volatility, with a significant decline in recent years, indicating potential liquidity issues. Operating cash flow has decreased to zero, raising concerns about the company's ability to generate cash from operations. The absence of recent free cash flow growth further highlights cash flow constraints.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.15B	1.28B	1.33B	1.65B	1.65B
	Gross Profit
848.67M	956.10M	1.00B	1.21B	1.18B
	EBIT
-125.67M	-95.10M	-45.99M	-45.51M	51.11M
	EBITDA
-268.27M	15.40M	65.16M	131.00M	213.04M
	Net Income Common Stockholders
-373.44M	-72.17M	-51.24M	-27.48M	-2.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
163.43M	283.61M	380.18M	378.64M	425.15M
	Total Assets
2.37B	2.86B	2.98B	3.30B	3.43B
	Total Debt
363.43M	342.33M	384.05M	425.35M	557.86M
	Net Debt
200.00M	58.72M	10.15M	46.71M	132.71M
	Total Liabilities
642.66M	704.09M	704.47M	788.50M	941.06M
	Stockholders Equity
1.72B	2.16B	2.27B	2.52B	2.49B
Cash Flow		Free Cash Flow
0.00	9.81M	116.54M	154.28M	385.65M
	Operating Cash Flow
-81.62M	37.95M	137.71M	166.04M	421.70M
	Investing Cash Flow
0.00	-17.00M	-27.45M	-11.54M	-35.89M
	Financing Cash Flow
0.00	-101.46M	-74.50M	-215.72M	-199.05M

Embry Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1388, the sentiment is Positive. The current price of 0.44 is above the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.42, and above the 200-day MA of 0.38, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.48 is Neutral, neither overbought nor oversold. The STOCH value of 116.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1388.

Embry Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2020	81 Outperform	HK$259.84B	15.49	28.11%	2.61%	11.51%	47.88%
2299	72 Outperform	HK$9.73B	12.01	7.06%	―	14.35%	107.03%
1910	70 Outperform	$19.55B	8.49	20.15%	5.96%	-4.83%	-27.83%
1428	68 Neutral	HK$13.19B	23.25	47.60%	4.25%	-5.88%	-18.17%
2314	68 Neutral	$9.62B	7.33	4.75%	4.12%	4.24%	25.30%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
1388	44 Neutral	HK$183.75M	―	-19.24%	―	-10.08%	-417.56%

Embry Holdings Limited Corporate Events

Embry Holdings Limited Announces 2025 Annual General Meeting

Embry Holdings Limited has announced its upcoming annual general meeting scheduled for May 29, 2025, where key agenda items include the re-election of independent non-executive directors and the re-appointment of Ernst & Young as auditors. The meeting will also address resolutions related to the issuance and purchase of company shares, potentially impacting the company’s market operations and shareholder value.

Embry Holdings Reports Increased Losses for 2024

Embry Holdings Limited announced its financial results for the year ended December 31, 2024, reporting a significant increase in losses compared to the previous year. The company faced a loss of HK$373.4 million, primarily due to impairments in property, plant, equipment, and other assets, as well as a decrease in revenue and gross profit. This financial downturn may impact the company’s market positioning and stakeholder confidence.

Embry Holdings Schedules Board Meeting for Financial Results and Dividend Discussion

Embry Holdings Limited has announced a board meeting scheduled for March 28, 2025, to discuss and approve the audited final results for the year ending December 31, 2024. The meeting will also consider the recommendation for the payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.

Embry Holdings Issues Profit Warning Amid Increased Losses

Embry Holdings Limited has issued a profit warning, anticipating a significant increase in net loss for the fiscal year ending December 31, 2024, with expected losses around HK$380 million compared to HK$72 million in the previous year. The increase in losses is attributed to non-recurring, unrealized, and non-cash items, including impairments of property, plant, and equipment, a decrease in the fair value of investment properties, and the reversal of deferred tax assets. These financial challenges are driven by ongoing fierce market competition and sluggish property markets in the Chinese Mainland and Hong Kong.