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

• Market Cap: HK$259.10M
• Dividend Yield: N/A
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -7.73%
• EPS Growth: 60.42%
• Country: HK
• Employees: 810
• Sector: Consumer Defensive
• Sector Strength: 69
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): -0.02
• Shares Outstanding: 655,944,000
• 10 Day Avg. Volume: 248,000
• 30 Day Avg. Volume: 1,053,421
• PEG Ratio: 0.84
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.02
• 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

• Rating: 44 Neutral
• Price Target: ―

Hung Fook Tong Group Holdings Ltd faces significant financial challenges, with declining revenue and profit margins, coupled with operational inefficiencies. Technical indicators also suggest bearish momentum, with no clear reversal signals. The negative P/E ratio and lack of dividend yield further detract from its valuation attractiveness. Overall, the stock is rated low, reflecting the company's current financial and market difficulties.

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 Group Holdings Ltd generates revenue primarily through its extensive retail network of outlets where it sells its proprietary range of herbal drinks, soups, and wellness snacks. The company also earns from its wholesale business, supplying products to various supermarkets and convenience stores. Additionally, Hung Fook Tong has expanded its revenue streams through e-commerce platforms, allowing customers to purchase their products online. Its revenue is further supported by strategic partnerships and collaborations that help in expanding its distribution channels and enhancing brand visibility.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
620.73M	672.73M	686.72M	696.00M	702.47M
	Gross Profit
369.00M	393.48M	406.31M	417.27M	447.82M
	EBIT
-8.32M	-36.38M	7.67M	14.39M	73.98M
	EBITDA
27.81M	103.62M	140.63M	147.91M	203.18M
	Net Income Common Stockholders
-13.69M	-34.62M	-1.93M	8.22M	62.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
110.25M	88.53M	103.91M	116.68M	134.91M
	Total Assets
670.25M	713.76M	759.35M	814.07M	834.53M
	Total Debt
171.77M	191.95M	169.67M	189.25M	217.38M
	Net Debt
61.52M	103.42M	65.76M	72.57M	82.48M
	Total Liabilities
435.05M	457.89M	450.76M	479.11M	499.92M
	Stockholders Equity
259.75M	278.15M	322.80M	337.20M	335.60M
Cash Flow		Free Cash Flow
0.00	99.09M	98.89M	107.10M	188.23M
	Operating Cash Flow
138.58M	114.86M	123.21M	136.66M	220.09M
	Investing Cash Flow
0.00	-15.65M	-24.23M	-33.72M	-31.64M
	Financing Cash Flow
0.00	-114.55M	-110.02M	-121.58M	-150.27M

Hung Fook Tong Group Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1446, the sentiment is Positive. The current price of 0.4 is below the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.34, and above the 200-day MA of 0.23, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 55.85 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	65 Neutral	$8.88B	15.01	4.67%	6.15%	3.61%	-2.60%
1446	44 Neutral	HK$259.10M	―	-5.09%	―	-7.73%	60.42%
CRGGF		$6.23B	12.16	9.94%	0.81%	―	―
FSHUF		$1.08B	43.86	6.48%	1.69%	―	―
TRSBF		$7.33B	27.80	14.19%	1.03%	―	―
8282	44 Neutral	HK$21.28M	―	-9.03%	―	-65.72%	96.84%
1468	36 Underperform	HK$404.67M	―	-78.81%	―	-63.62%	49.46%

Hung Fook Tong Group Holdings Ltd Corporate Events

Hung Fook Tong Announces 2025 AGM Agenda

Hung Fook Tong Group Holdings Limited has announced its 2025 Annual General Meeting (AGM) to be held on June 3, 2025, in Hong Kong. The meeting will address ordinary business matters such as the adoption of financial statements, re-election of directors, and re-appointment of auditors. Additionally, a special resolution will be considered to authorize the directors to issue additional shares, with certain restrictions, during a specified period. This meeting is significant for stakeholders as it will determine the company’s governance and financial strategies for the upcoming year.

Hung Fook Tong Reports Revenue Decline but Narrows Losses in 2024

Hung Fook Tong Group Holdings Limited reported a 7.7% decline in revenue for the year ended December 31, 2024, with figures dropping to HK$620.7 million from HK$672.7 million in 2023. Despite the decrease in revenue, the company managed to improve its gross profit margin by 0.9 percentage points to 59.4%. The loss attributable to the owners of the company narrowed significantly to HK$13.7 million from HK$34.6 million the previous year, indicating a positive shift in financial performance. This announcement reflects a challenging year for the company, yet it shows resilience in maintaining profitability margins and reducing losses, which could have implications for its market positioning and stakeholder confidence.

Hung Fook Tong Reports Significant Reduction in Losses for FY2024

Hung Fook Tong Group Holdings Limited announced a significant improvement in its financial performance for the year ended December 2024, with a reduction in losses by approximately 60% compared to the previous year. Despite a challenging operating environment marked by decreased revenue and cautious consumer spending, the company achieved this improvement through enhanced production processes, optimized sales mix, and controlled operating expenses, resulting in a stronger gross profit margin and a healthy financial position.

Hung Fook Tong Schedules Board Meeting for Annual Results and Dividend Consideration

Hung Fook Tong Group Holdings Limited has announced a board meeting scheduled for March 27, 2025, to review and approve the audited annual results for the financial year ending December 31, 2024. The meeting will also consider recommending a final dividend for 2024 and address other business matters.