Embry Holdings Limited (1388) AI Stock Analysis

• Market Cap: HK$152.07M
• Dividend Yield: N/A
• Average Volume (3M): 28.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: -6.47%
• EPS Growth: -118.56%
• Country: HK
• Employees: 3,949
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.14
• Shares Outstanding: 422,416,630
• 10 Day Avg. Volume: 7,200
• 30 Day Avg. Volume: 28,666
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -1.64
• 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: 45 Neutral
• Price Target: HK$0.50 ▲(25.00% Upside)

Embry Holdings is currently facing significant financial challenges, with declining revenue and negative earnings impacting its financial performance. The technical analysis indicates a bearish trend, and the valuation is unattractive due to the negative P/E ratio and lack of dividend yield. These factors collectively contribute to a low overall stock score.

Positive Factors

Brand Portfolio

A strong brand portfolio helps maintain customer loyalty and competitive advantage, supporting long-term revenue stability and market presence.

Omnichannel Strategy

An omnichannel strategy enhances customer engagement and sales opportunities, providing resilience against market shifts and consumer behavior changes.

Strategic Collaborations

Strategic collaborations can drive brand awareness and attract new customers, contributing to long-term growth and competitive positioning.

Negative Factors

Declining Revenue

Declining revenue trends indicate challenges in market demand and competitiveness, potentially impacting long-term financial health and growth prospects.

Negative Earnings

Negative earnings reflect operational inefficiencies and profitability issues, which can undermine financial stability and investor confidence over time.

Cash Flow Constraints

Cash flow constraints limit the company's ability to invest in growth and manage financial obligations, posing risks to long-term operational sustainability.

Embry Holdings Limited Business Overview & Revenue Model

Company Description

Embry Holdings Limited (1388) is a leading fashion retailer based in Hong Kong, primarily focusing on women's apparel and accessories. The company operates in the retail sector, offering a diverse range of products that include high-quality clothing, shoes, bags, and other fashion items. Embry Holdings is well-known for its strong brand portfolio, which includes various fashion labels, and it emphasizes both online and offline shopping experiences to cater to a broad customer base.

How the Company Makes Money

Embry Holdings Limited generates revenue primarily through the sale of fashion apparel and accessories across its retail stores and e-commerce platforms. Key revenue streams include direct sales from physical stores, online sales through its website, and partnerships with third-party e-commerce platforms. The company also benefits from seasonal promotions and marketing campaigns that drive consumer traffic. Additionally, strategic collaborations with designers and influencers help enhance brand visibility and attract new customers, contributing significantly to its earnings.

Embry Holdings Limited Financial Statement Overview

Summary

Embry Holdings is facing significant challenges in profitability and cash flow generation, with declining revenue and negative earnings. The balance sheet shows moderate leverage, but financial stability is under pressure. The company needs to address operational inefficiencies and improve cash flow to enhance its financial health.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	1.15B	1.28B	1.33B	1.65B	1.65B
Gross Profit	812.66M	848.67M	956.10M	1.00B	1.21B	1.18B
EBITDA	-89.20M	-268.27M	15.40M	65.16M	131.00M	213.04M
Net Income	-349.16M	-373.44M	-72.17M	-51.24M	-27.48M	-2.82M
Balance Sheet
Total Assets	2.46B	2.37B	2.86B	2.98B	3.30B	3.43B
Cash, Cash Equivalents and Short-Term Investments	212.74M	163.43M	283.61M	380.18M	378.64M	425.15M
Total Debt	440.79M	363.43M	342.33M	384.05M	425.35M	557.86M
Total Liabilities	729.12M	642.66M	704.09M	704.47M	788.50M	941.06M
Stockholders Equity	1.73B	1.72B	2.16B	2.27B	2.52B	2.49B
Cash Flow
Free Cash Flow	-115.93M	-90.39M	9.81M	116.54M	154.28M	385.65M
Operating Cash Flow	-109.72M	-81.62M	37.95M	137.71M	166.04M	421.70M
Investing Cash Flow	-6.80M	-8.73M	-17.00M	-27.45M	-11.54M	-35.89M
Financing Cash Flow	92.11M	-3.11M	-101.46M	-74.50M	-215.72M	-199.05M

Embry Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Negative
• 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:1388, the sentiment is Negative. The current price of 0.4 is above the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.38, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 34.36 is Neutral, neither overbought nor oversold. The STOCH value of 73.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1388.

Embry Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1425	75 Outperform	HK$800.00M	5.07	21.11%	8.89%	-8.00%	-11.37%
2199	67 Neutral	HK$2.83B	10.83	8.10%	4.00%	3.40%	151.24%
2368	63 Neutral	HK$2.00B	8.40	12.21%	7.98%	13.52%	4.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2298	60 Neutral	HK$800.60M	7.26	4.94%	6.04%	0.72%	2.24%
1906	46 Neutral	HK$647.29M	-24.16	-6.24%	―	5.88%	16.82%
1388	45 Neutral	HK$152.07M	-0.44	-18.57%	―	-6.47%	-118.56%