Fulum Group Holdings Ltd. (1443) AI Stock Analysis

• Market Cap: HK$65.00M
• Dividend Yield: 4.48%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.04
• Revenue Growth: -13.13%
• EPS Growth: -873.33%
• Country: HK
• Employees: 1,743
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.03
• Shares Outstanding: 1,300,000,000
• 10 Day Avg. Volume: 131,600
• 30 Day Avg. Volume: 1,455,533
• PEG Ratio: <0.01
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 0.44
• 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: 44 Neutral
• Price Target: HK$0.05 ▼(-35.00% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

Overall score is pressured primarily by weak financial performance (declining revenue, ongoing losses, and very high leverage/negative ROE). Technicals add additional caution with the price still below key longer-term moving averages and a negative MACD. Valuation is partially supported by the high dividend yield, but losses (negative P/E) cap the benefit.

Positive Factors

Positive operating cash flow

Positive operating cash flow provides a durable liquidity buffer that supports day-to-day operations, working capital and potential shareholder distributions. Over the medium term this cash generation capacity helps sustain the business while management addresses profitability and leverage issues.

Reasonable gross margin

A 36.49% gross margin indicates underlying unit economics and menu-level profitability typical of restaurant concepts. If overheads are controlled, this margin offers a pathway to restore operating profits and scale profitability as sales stabilize or improve over the next several quarters.

High dividend yield (policy signal)

A sustained dividend yield near 5% signals a corporate policy to return cash to shareholders and discipline capital allocation. When backed by positive operating cash flow, this policy can attract income-oriented investors and impose financial discipline on capital spending and cost control over the medium term.

Negative Factors

Very high leverage

A debt-to-equity ratio above 5 denotes a heavily leveraged balance sheet that materially raises refinancing, interest and solvency risk. In a volume-sensitive industry like restaurants, this leverage limits strategic flexibility and increases the probability that adverse sales trends will force asset sales or restructuring.

Declining revenue

Sustained revenue decline erodes operating leverage and makes it harder to cover fixed costs in restaurant operations. Without a clear, durable recovery in sales or market share, declining top-line trends will continue to pressure margins, cash flow and the ability to deleverage over the next several quarters.

Negative profitability and returns

Negative net margin and deeply negative ROE indicate the business is losing money and destroying shareholder equity. This structural profitability shortfall limits reinvestment, constrains balance-sheet repair and increases the need for operational turnaround or capital restructuring to achieve sustainable returns.

Fulum Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Fulum Group Holdings Limited, an investment holding company, engages in restaurant operations business in Hong Kong and the People's Republic of China. As of March 31, 2022, the company operated 91 restaurants, including 16 restaurants under the Fulum brand; 8 restaurants under the Sportful Garden brand; 67 restaurants under the Asian Catering Line brand in Hong Kong; and 4 restaurants in Mainland China, as well as 7 supermarkets. It also processes, sells, and distributes food products; owns trademarks; lends money; and holds properties, as well as operates food court. Fulum Group Holdings Limited was founded in 1992 is headquartered in Kowloon Bay, Hong Kong.

How the Company Makes Money

Fulum Group Holdings Ltd. generates revenue primarily through its restaurant operations, where it earns income from food and beverage sales. The company runs multiple dining outlets, which contribute significantly to its overall revenue. Additionally, Fulum Group may have revenue streams from food processing and distribution, supplying its products to other businesses and retail outlets. Partnerships with suppliers for ingredients and potential collaborations with delivery services also enhance its revenue generation capabilities. Seasonal promotions and menu innovations further attract customers, driving sales growth.

Fulum Group Holdings Ltd. Financial Statement Overview

Summary

Weak fundamentals: revenue declined (-5.71%), profitability is negative (net margin -3.90% and negative EBIT margin), and leverage is very high (debt-to-equity 5.04) with deeply negative ROE (-51.97%). Positive operating cash flow helps, but free cash flow growth is falling (-7.51%).

Income Statement

Fulum Group Holdings Ltd. has experienced a decline in revenue growth with a negative rate of -5.71% in the most recent year, indicating challenges in maintaining sales momentum. The gross profit margin is moderate at 36.49%, but the net profit margin is negative at -3.90%, reflecting ongoing profitability issues. The EBIT margin is also negative, suggesting operational inefficiencies. Overall, the income statement reflects a struggling financial performance with declining revenues and profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 5.04, indicating significant leverage and potential financial risk. Return on equity is negative at -51.97%, highlighting poor returns for shareholders. The equity ratio is low, suggesting limited financial stability. The balance sheet shows a heavily leveraged position with weak equity returns, posing risks to financial health.

Cash Flow

Operating cash flow is positive, providing some liquidity, but the free cash flow growth rate is negative at -7.51%, indicating declining cash generation. The operating cash flow to net income ratio is 0.46, showing moderate cash conversion efficiency. Despite positive cash flow, the declining free cash flow growth suggests potential challenges in sustaining cash generation.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.56B	1.70B	1.84B	1.64B	1.45B	1.17B
Gross Profit	271.21M	621.16M	537.68M	600.69M	455.71M	397.97M
EBITDA	305.18M	309.71M	375.91M	329.45M	257.35M	229.44M
Net Income	-60.34M	-66.37M	50.58M	21.14M	-49.17M	-168.31M
Balance Sheet
Total Assets	858.72M	1.01B	1.27B	991.23M	995.95M	1.21B
Cash, Cash Equivalents and Short-Term Investments	68.10M	74.64M	121.79M	169.76M	128.57M	145.07M
Total Debt	513.65M	643.91M	878.66M	649.46M	691.45M	824.23M
Total Liabilities	768.14M	888.58M	1.08B	845.95M	874.26M	1.08B
Stockholders Equity	93.16M	127.72M	195.99M	147.85M	121.69M	121.98M
Cash Flow
Free Cash Flow	256.50M	280.88M	297.22M	265.09M	177.38M	192.71M
Operating Cash Flow	310.18M	342.07M	362.81M	325.65M	251.03M	269.47M
Investing Cash Flow	-57.73M	-65.25M	-74.66M	-63.74M	-76.86M	-54.63M
Financing Cash Flow	-281.12M	-324.15M	-338.65M	-164.63M	-246.85M	-189.77M

Fulum Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1443, the sentiment is Negative. The current price of 0.08 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.06, and above the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 39.44 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1443.

Fulum Group Holdings Ltd. 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%
1843	53 Neutral	HK$124.80M	-4.53	-7.31%	―	16.43%	-3100.00%
8447	49 Neutral	HK$83.00M	2.72	-4.32%	―	6.55%	98.02%
1869	47 Neutral	HK$145.26M	-4.49	73.20%	―	-18.92%	-2250.00%
8495	45 Neutral	HK$115.20M	-12.44	3.62%	―	-2.67%	22.22%
1443	44 Neutral	HK$65.00M	-0.57	-54.64%	4.48%	-13.13%	-873.33%
8519	42 Neutral	HK$44.94M	23.64	1061.41%	―	-5.22%	-7.65%

Fulum Group Holdings Ltd. Corporate Events

Fulum Group Calls March 2026 EGM to Approve Connected Tenancy Framework

Fulum Group Holdings Limited has called an extraordinary general meeting for 24 March 2026 in Hong Kong, inviting shareholders to vote on an ordinary resolution concerning a 2026 Connected Tenancy Framework Agreement and related right-of-use assets caps. The company has set out procedures for proxy appointments and share registration closure to determine eligibility to attend and vote, underscoring the governance steps required to approve its planned tenancy arrangements.

The resolution, if approved, will authorise the board and its delegates to execute all documents and actions necessary to implement the tenancy framework, which governs connected-party leasing arrangements. This approval is expected to provide greater clarity and formal authorisation for the group’s future rental commitments, potentially affecting its cost structure and operational flexibility across its restaurant portfolio.

The most recent analyst rating on (HK:1443) stock is a Hold with a HK$0.05 price target. To see the full list of analyst forecasts on Fulum Group Holdings Ltd. stock, see the HK:1443 Stock Forecast page.

Fulum Group Seeks Independent Shareholder Approval for Major Connected Tenancy Renewal

Fulum Group Holdings has renewed its existing connected tenancy framework with its executive directors, a controlling shareholder and their associated landlord entities by entering into a new 2026 Connected Tenancy Framework Agreement covering the period from 1 April 2026 to 31 March 2029. Because the right-of-use asset caps under the new framework exceed key thresholds, the arrangement is classified as a very substantial acquisition and a continuing connected transaction under Hong Kong listing rules, triggering notification, announcement, annual review, circular and independent shareholders’ approval requirements, while certain service charges related to one key premise will be subject to lighter disclosure and review obligations. An independent board committee has been formed and Octal Capital has been appointed as independent financial adviser to assess the terms for independent shareholders, who will vote by poll at an extraordinary general meeting on whether to approve the new tenancy framework, the related transactions and the associated right-of-use asset caps, with the outcome set to shape Fulum’s access to key leased premises controlled by its connected landlords.

The most recent analyst rating on (HK:1443) stock is a Hold with a HK$0.08 price target. To see the full list of analyst forecasts on Fulum Group Holdings Ltd. stock, see the HK:1443 Stock Forecast page.