Major Holdings Ltd. (1389) AI Stock Analysis

• Market Cap: HK$177.39M
• Dividend Yield: N/A
• Average Volume (3M): 205.62K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.10
• Revenue Growth: -32.89%
• EPS Growth: 57.23%
• Country: HK
• Employees: 15
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): >-0.01
• Shares Outstanding: 554,333,300
• 10 Day Avg. Volume: 98,353
• 30 Day Avg. Volume: 205,624
• PEG Ratio: 0.36
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 3.20
• P/FCF Ratio: -14.27
• 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: 40 Underperform
• Price Target: HK$0.38 ▲(17.19% Upside)

Major Holdings Ltd. is facing substantial financial and operational challenges, with declining revenues, persistent losses, and poor valuation metrics. Technical indicators also suggest bearish momentum. The company's strong equity position is a positive aspect, but it is overshadowed by liquidity and profitability concerns.

Positive Factors

Strong Equity Position

A strong equity position indicates a solid capital structure, providing a buffer against financial instability and supporting long-term resilience.

Conservative Leverage

Low leverage reduces financial risk and interest obligations, allowing the company to better manage economic downturns and invest in growth opportunities.

Strategic Partnerships

Strategic partnerships can enhance market reach and project capabilities, potentially leading to increased revenue streams and competitive advantages.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in market demand or competitive positioning, potentially impacting long-term growth and profitability.

Negative Margins

Negative margins suggest cost management issues and operational inefficiencies, which can erode profitability and hinder sustainable growth.

Cash Flow Volatility

Volatile cash flow can lead to liquidity challenges, limiting the company's ability to invest in growth initiatives and meet financial obligations.

Major Holdings Ltd. Business Overview & Revenue Model

Company Description

Major Holdings Limited, an investment holding company, engages in the sale and distribution of premium wine and spirits in Hong Kong. The company offers red wine, white wine, sparkling wine, sake, wine accessory products, and other products. It also trades in wine, as well as provides wine storage and consignment services. It offers products through its retail shops; and through a network of distributors, retail organizations, five-star hotels, and private clubs. Major Holdings Limited was founded in 2007 and is headquartered in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

Major Holdings Ltd. generates revenue primarily through rental income from its portfolio of commercial and residential properties. The company leases spaces to various tenants, providing a steady stream of cash flow. Additionally, Major Holdings profits from property development projects, where it undertakes construction and development of new real estate ventures, selling or leasing the units upon completion. The company may also engage in strategic partnerships with other developers and investors, enhancing its market reach and project capabilities, which can further boost its revenue streams. Other income may come from property management services and consulting, where it offers expertise in real estate to third parties, contributing to its overall earnings.

Major Holdings Ltd. Financial Statement Overview

Summary

Major Holdings Ltd. faces significant financial challenges, with declining revenues and persistent losses impacting profitability. While the balance sheet shows a strong equity position, cash flow volatility and negative margins suggest operational and liquidity pressures. The company needs to address cost management and revenue growth to improve its financial health.

Income Statement

Major Holdings Ltd. has experienced a consistent decline in revenue over the past few years, with a significant drop from 2020 to 2025. The gross profit margin has turned negative in 2025, indicating cost challenges. The net profit margin remains negative, reflecting ongoing losses. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is low, suggesting a conservative leverage position. However, the return on equity is negative due to net losses, impacting overall profitability. The equity ratio remains strong, indicating a solid capital structure despite declining asset levels.

Cash Flow

Cash flow from operations has been volatile, with a significant negative swing in 2025. Free cash flow has also deteriorated, indicating potential liquidity challenges. The operating cash flow to net income ratio is unfavorable, reflecting cash flow issues relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.02M	58.02M	63.04M	74.44M	107.79M	114.59M
Gross Profit	-8.88M	-8.88M	5.47M	7.87M	13.84M	17.36M
EBITDA	-10.84M	-10.84M	-10.05M	-11.06M	2.15M	5.09M
Net Income	-13.36M	-13.36M	-15.68M	-16.59M	-8.71M	-5.04M
Balance Sheet
Total Assets	117.84M	117.84M	135.95M	132.36M	173.35M	174.65M
Cash, Cash Equivalents and Short-Term Investments	11.52M	11.52M	26.45M	5.93M	7.18M	6.90M
Total Debt	1.23M	1.23M	4.79M	12.13M	23.65M	19.73M
Total Liabilities	8.22M	8.22M	12.98M	22.55M	46.94M	39.53M
Stockholders Equity	109.61M	109.61M	122.97M	109.81M	126.41M	135.12M
Cash Flow
Free Cash Flow	-13.02M	-13.02M	1.13M	17.81M	-3.52M	19.76M
Operating Cash Flow	-12.52M	-12.52M	1.29M	20.17M	-3.48M	20.12M
Investing Cash Flow	-330.00K	-330.00K	-108.00K	3.72M	17.00K	7.52M
Financing Cash Flow	-2.08M	-2.08M	19.34M	-25.14M	3.75M	-26.46M

Major Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1389, the sentiment is Negative. The current price of 0.32 is below the 20-day moving average (MA) of 0.42, below the 50-day MA of 0.55, and below the 200-day MA of 0.42, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 22.74 is Positive, neither overbought nor oversold. The STOCH value of 36.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1389.

Major Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8509	65 Neutral	HK$264.00M	6.95	11.66%	―	15.66%	-1.25%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0828	54 Neutral	HK$380.27M	16.46	7.46%	1.30%	-4.14%	-21.15%
8146	51 Neutral	HK$212.16M	-4.86	-23.19%	―	-18.68%	-3305.88%
1389	40 Underperform	HK$177.39M	-22.54	-7.08%	―	-32.89%	57.23%
8057	40 Underperform	HK$37.39M	-2.08	―	―	3.35%	17.48%

Major Holdings Ltd. Corporate Events

Major Holdings Ltd. Reports Reduced Losses in Interim Results

Major Holdings Ltd. reported its interim financial results for the six months ending September 30, 2025, showing a significant reduction in losses compared to the same period in 2024. The company recorded a loss after taxation of approximately HK$2.0 million, a notable improvement from the HK$7.5 million loss in the previous year. Despite the reduced losses, the Board has decided not to recommend the payment of an interim dividend. The company’s revenue decreased from HK$36.2 million to HK$25.0 million, but cost of sales also dropped significantly, leading to a gross profit of HK$2.4 million compared to a loss in the previous year. These results reflect a positive shift in the company’s financial performance, although challenges remain in terms of revenue generation.

Major Holdings Ltd. Schedules Board Meeting for Interim Results

Major Holdings Limited has announced that its board of directors will meet on November 21, 2025, to consider and approve the unaudited interim results for the six months ending September 30, 2025. The board will also discuss the potential recommendation of a dividend payment, highlighting the company’s ongoing financial assessments and shareholder considerations.