Major Holdings Ltd. (1389) AI Stock Analysis

• Market Cap: HK$127.50M
• 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: 41 Neutral
• Price Target: HK$0.22 ▼(-38.89% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven down primarily by weak financial performance (declining revenue, negative margins, and deteriorating/volatile operating and free cash flow). Technicals also remain bearish with the price below major moving averages and a negative MACD. Valuation offers limited support because the negative P/E reflects ongoing losses and no dividend yield data is available.

Positive Factors

Positive recent EPS growth

Material positive EPS growth indicates improvement in per‑share profitability metrics. Over several months this can reflect cost actions or efficiency gains that, if sustained and paired with revenue stabilization, support a structural path toward break‑even or profitability.

Conservative leverage / strong equity ratio

Low debt and a strong equity ratio provide lasting financial flexibility. This conservative capital structure reduces interest burden and gives the company runway to restructure operations or fund targeted investments without immediate financing pressure, supporting solvency over months.

Lean operating footprint

A very small headcount suggests a lean cost base and potential operational nimbleness. Lower fixed payroll expense helps preserve cash burn rates and makes it easier to scale overhead up or down, aiding margin recovery if revenue stabilizes over the medium term.

Negative Factors

Declining revenue trend

A multi‑year revenue contraction undermines scale economics and market positioning. Persistently falling top line reduces pricing power and amortizes fixed costs across a smaller base, making margin recovery and sustained profitability materially harder over the medium term.

Negative gross profit margin (2025)

A negative gross margin means product or direct costs exceed sales revenue, a structural issue that cannot be fixed by financing alone. Without meaningful business model changes, pricing adjustments, or cost reductions, gross losses will erode any operating leverage and hinder long‑term viability.

Volatile, sharply negative operating cash flow

Materially negative and volatile operating cash flow restricts the firm's ability to fund operations, capex, or marketing sustainably. Over months, this raises reliance on external financing, increases liquidity risk, and limits the company’s capacity to invest for recovery or growth.

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

Income statement trends are weak with declining revenue, negative gross profit margin in 2025, and persistently negative net/EBIT/EBITDA margins. Balance sheet leverage is conservative with a strong equity ratio, but negative ROE reflects ongoing losses. Cash flow is pressured by volatile and sharply negative operating cash flow in 2025 and deteriorating free cash flow.

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

Major Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

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 0.36 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.30, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 20.11 is Positive, neither overbought nor oversold. The STOCH value of 18.75 is Positive, 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	75 Outperform	HK$276.00M	7.57	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$345.06M	13.36	7.46%	1.30%	-4.14%	-21.15%
8057	45 Neutral	HK$53.59M	-1.39	―	―	3.35%	17.48%
8146	45 Neutral	HK$528.45M	-14.99	-23.19%	―	-18.68%	-3305.88%
1389	41 Neutral	HK$127.50M	-39.56	-7.08%	―	-32.89%	57.23%
0389	40 Underperform	HK$101.02M	458.76	-50.46%	―	―	―

Major Holdings Ltd. Corporate Events

Major Holdings Tightens Governance With Updated Nomination Committee Rules

Major Holdings has updated the terms of reference for its Nomination Committee, effective 26 February 2026, to formalize its composition, meeting procedures, and decision-making processes. The committee must include at least one director of a different gender and be majority staffed by independent non-executive directors, with the chair drawn either from the board chair or an independent director.

The revised framework sets minimum meeting frequency, notice periods, quorum requirements, and rules for handling conflicts of interest, as well as standards for written resolutions and minute-keeping. These changes reinforce the company’s corporate governance structure, aiming to strengthen transparency and independence in board nominations and oversight for stakeholders.

The most recent analyst rating on (HK:1389) stock is a Hold with a HK$0.26 price target. To see the full list of analyst forecasts on Major Holdings Ltd. stock, see the HK:1389 Stock Forecast page.

Major Holdings Switches Auditor in Cost-Focused Move Despite Reprimand of New Firm

Major Holdings Limited has announced a change of auditor, with Beijing Xinghua Caplegend CPA Limited resigning as auditor effective 19 January 2026 after the two parties failed to reach agreement on audit fees for the financial year ending 31 March 2026. The board and audit committee stressed there were no other disagreements or unresolved matters with the outgoing auditor and that no audit work for the year had yet begun, so the change is not expected to materially affect the timing or conduct of the group’s annual audit. The company has appointed Rongcheng (HK) CPA Limited as its new auditor, following a selection process aligned with Hong Kong regulatory guidelines and based on considerations of experience, capability, resources and cost. While noting that Rongcheng (HK) CPA Limited was recently reprimanded and fined by the Accounting and Financial Reporting Council for administrative compliance breaches unrelated to audit quality, the board and audit committee concluded that the firm remains independent and competent and that the change of auditor will support cost control and reduced operating expenses, which they view as being in the interests of the company and its shareholders.

The most recent analyst rating on (HK:1389) stock is a Hold with a HK$0.38 price target. To see the full list of analyst forecasts on Major Holdings Ltd. stock, see the HK:1389 Stock Forecast page.