Hung Fook Tong Group Holdings Ltd (1446) AI Stock Analysis

• Market Cap: HK$265.66M
• Dividend Yield: N/A
• Average Volume (3M): 158.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: -6.79%
• EPS Growth: 49.40%
• Country: HK
• Employees: 810
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): -0.02
• Shares Outstanding: 655,944,000
• 10 Day Avg. Volume: 103,825
• 30 Day Avg. Volume: 158,941
• PEG Ratio: 0.14
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 0.90
• 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: 49 Neutral
• Price Target: HK$0.43 ▼(-10.83% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, with declining revenue and profitability. Technical analysis provides some positive momentum, but valuation metrics are weak due to negative earnings. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Market Position

Hung Fook Tong's specialization in traditional Chinese medicinal drinks provides a niche market position, leveraging cultural heritage and growing consumer interest in health-oriented products.

Revenue Streams

Diverse revenue streams across retail, partnerships, and e-commerce enhance resilience and adaptability to market changes, supporting long-term growth potential.

Brand Reputation

A strong brand reputation in the herbal beverage market can drive customer loyalty and competitive advantage, supporting sustained revenue and market share.

Negative Factors

Revenue Decline

Declining revenue indicates potential loss of market share or demand, challenging the company's ability to maintain growth and profitability over the long term.

Profitability Issues

Decreasing profit margins and negative net profit margin reflect operational inefficiencies, which can undermine financial health and limit investment in growth initiatives.

Cash Flow Challenges

Lack of free cash flow suggests liquidity issues, potentially hindering the company's ability to invest in growth opportunities or weather economic downturns.

Hung Fook Tong Group Holdings Ltd Business Overview & Revenue Model

Company Description

Hung Fook Tong Group Holdings Limited, an investment holding company, produces, retails, wholesales, and distributes bottled drinks and other herbal products in the People's Republic of China, Hong Kong, and internationally. The company operates in two segments, Hong Kong Retail and Wholesale. It offers Chinese herbal drinks and other drink products, Chinese-style soups, herbal tortoise plastron jelly, and other food products under the Hung Fook Tong brand name; manufactures and trades in snacks; and retails bakery products, salad, coffee, organic oatmeal, fruit tea, soups, and drinks. The company is also involved in the coupons wholesaling, catering, and plastics bottles manufacturing activities; provision of logistics and trading services, and training courses; ecommerce activities; administration of group rental leases; and license holding activities. As of December 31, 2021, it operated 122 self-operated shops and seven HFT Life cafés. Hung Fook Tong Group Holdings Limited was founded in 1986 and is based in Tai Po, Hong Kong.

How the Company Makes Money

Hung Fook Tong generates revenue primarily through the sale of its products across multiple channels, including physical retail stores, food service partnerships, and online platforms. The company's key revenue streams include direct sales from its own stores, distribution to supermarkets and convenience stores, and online sales through its official website and other e-commerce platforms. Additionally, the company may engage in strategic partnerships with restaurants and other food service providers to expand its reach. Factors contributing to its earnings include increasing consumer demand for health-oriented products, effective marketing strategies, and the brand's strong reputation in the herbal beverage market.

Hung Fook Tong Group Holdings Ltd Financial Statement Overview

Summary

Hung Fook Tong Group Holdings Ltd is facing significant financial challenges. Revenue and profit margins have been on a declining trajectory, coupled with operational inefficiencies. The balance sheet reflects increased leverage but remains stable. Cash flow issues are evident with no free cash flow in 2024. Overall, the company needs to address its profitability and operational efficiency to improve its financial health.

Income Statement

The company's revenue has shown a declining trend over the recent years, with a significant drop from 2019 to 2024. Gross profit margin has decreased, and there is a concerning negative net profit margin in 2024, signaling operational inefficiencies. The EBIT and EBITDA margins have also turned negative, indicating operational challenges and declining profitability.

Balance Sheet

The debt-to-equity ratio has increased slightly, indicating higher leverage but still within manageable levels. The return on equity has been negative recently, reflecting poor profitability. However, the equity ratio is reasonable, showing a stable asset base relative to equity.

Cash Flow

Operating cash flow has declined, with no free cash flow reported in 2024, suggesting cash flow challenges. Historically, the company maintained positive free cash flow, but recent trends indicate potential liquidity issues. The lack of operating cash flow relative to net income is a concern for sustaining future operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	605.01M	620.73M	672.73M	686.72M	696.00M	702.47M
Gross Profit	364.59M	369.00M	393.48M	406.31M	417.27M	447.82M
EBITDA	73.83M	27.81M	103.62M	140.63M	147.91M	203.18M
Net Income	-16.68M	-13.69M	-34.62M	5.27M	8.22M	62.53M
Balance Sheet
Total Assets	656.64M	670.25M	713.76M	759.35M	814.07M	834.53M
Cash, Cash Equivalents and Short-Term Investments	117.05M	110.25M	88.53M	103.91M	116.68M	134.91M
Total Debt	159.16M	171.77M	191.95M	169.67M	189.25M	217.38M
Total Liabilities	427.21M	435.05M	457.89M	450.76M	479.11M	499.92M
Stockholders Equity	252.77M	259.75M	278.15M	322.80M	337.20M	335.60M
Cash Flow
Free Cash Flow	136.60M	124.60M	99.09M	98.89M	107.10M	188.23M
Operating Cash Flow	154.44M	140.86M	114.86M	123.21M	136.66M	220.09M
Investing Cash Flow	-17.83M	-16.09M	-15.65M	-24.23M	-33.72M	-31.64M
Financing Cash Flow	-99.54M	-102.34M	-114.55M	-110.02M	-121.58M	-150.27M

Hung Fook Tong Group Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1446, the sentiment is Negative. The current price of 0.48 is above the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.42, and above the 200-day MA of 0.40, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 39.15 is Neutral, neither overbought nor oversold. The STOCH value of 1.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1446.

Hung Fook Tong Group Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0506	74 Outperform	HK$11.78B	12.51	13.57%	3.62%	10.05%	9.01%
2119	67 Neutral	HK$389.20M	8.14	9.28%	7.38%	4.61%	-23.88%
1285	64 Neutral	HK$456.50M	9.54	4.62%	13.51%	2.82%	-22.62%
0831	63 Neutral	HK$252.66M	9.64	4.08%	6.06%	-3.58%	-52.60%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0236	56 Neutral	HK$455.76M	-56.48	-1.15%	4.07%	2.77%	-110.76%
1446	49 Neutral	HK$265.66M	-15.94	-6.43%	―	-6.79%	49.40%