Fourace Industries Group Holdings Limited (1455) AI Stock Analysis

• Market Cap: HK$290.23M
• Dividend Yield: 6.61%
• Average Volume (3M): 431.67K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.18
• Revenue Growth: -34.28%
• EPS Growth: -45.72%
• Country: HK
• Employees: 408
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): <0.01
• Shares Outstanding: 1,278,562,500
• 10 Day Avg. Volume: 422,500
• 30 Day Avg. Volume: 431,666
• PEG Ratio: 0.66
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 3.25
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: HK$0.24 ▲(5.22% Upside)

Fourace Industries Group Holdings Limited has a strong financial foundation and attractive valuation, which are significant positives. However, technical analysis indicates bearish momentum, which poses a risk to short-term performance. The lack of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Cash Flow

Strong cash flow growth indicates excellent liquidity and supports reinvestment and debt repayment, enhancing long-term financial stability.

Low Leverage

Low leverage reduces financial risk and increases the company's ability to navigate economic downturns, supporting sustainable growth.

Operational Efficiency

Healthy margins demonstrate effective cost management and operational efficiency, which are crucial for maintaining profitability over time.

Negative Factors

Declining Revenue Growth

Negative revenue growth is concerning as it may indicate challenges in market expansion or product demand, impacting long-term business prospects.

Gross Profit Margin Decline

A declining gross profit margin can signal increased production costs or pricing pressure, potentially affecting future profitability.

Lack of Earnings Call Data

The absence of earnings call data limits transparency and insights into management's strategic direction, which can affect investor confidence.

Fourace Industries Group Holdings Limited Business Overview & Revenue Model

Company Description

Fourace Industries Group Holdings Limited engages in the design, development, manufacture, and sale of personal care and lifestyle electrical appliances in the United States, Japan, Europe, the People's Republic of China, and rest of the Asia Pacific. The company offers personal care electrical appliances comprising hair styling products, including hair dryers, hair straighteners, and curling irons; grooming products, such as clippers, nose trimmers, and eyebrow trimmers; and various beauty care devices. It also provides lifestyle electrical appliances, such as electric irons and bread makers. The company was founded in 1988 and is based in Kwai Chung, Hong Kong.

How the Company Makes Money

Fourace Industries Group Holdings Limited generates revenue primarily through the manufacturing and sale of its industrial products. The company operates on a business-to-business (B2B) model, supplying products to various industries, including electronics, construction, and automotive. Key revenue streams include direct sales to clients, long-term contracts with major corporations, and partnerships with distributors. Additionally, Fourace may engage in strategic alliances that enhance its market presence and expand its product offerings, thus contributing to its overall earnings.

Fourace Industries Group Holdings Limited Financial Statement Overview

Summary

Fourace Industries Group Holdings Limited demonstrates a solid financial position with strong cash flow and a stable balance sheet. Despite concerns about negative revenue growth, the company's operational efficiency and low leverage provide a strong foundation for future growth.

Income Statement

Fourace Industries Group Holdings Limited has shown a mixed performance in its income statement. The company has maintained a decent gross profit margin, although it has slightly declined over the years. The net profit margin is stable, indicating efficient cost management. However, the revenue growth rate has been negative in recent years, which is a concern. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The balance sheet of Fourace Industries is strong, with a very low debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity is reasonable, showing effective use of shareholder funds. The equity ratio is solid, suggesting a stable financial structure with a good proportion of assets financed by equity.

Cash Flow

The cash flow statement reveals a robust free cash flow growth rate, particularly in the latest period, which is a positive sign for liquidity and potential reinvestment. The operating cash flow to net income ratio is strong, indicating good cash generation relative to reported earnings. The free cash flow to net income ratio is also healthy, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	272.31M	272.31M	268.02M	365.56M	473.39M	437.45M
Gross Profit	91.47M	91.47M	97.36M	110.33M	118.14M	125.72M
EBITDA	58.57M	65.17M	61.52M	89.55M	85.77M	85.18M
Net Income	41.70M	41.70M	38.72M	64.20M	59.72M	58.14M
Balance Sheet
Total Assets	497.17M	497.17M	475.92M	456.78M	470.03M	427.13M
Cash, Cash Equivalents and Short-Term Investments	317.26M	317.26M	253.57M	254.44M	179.68M	170.98M
Total Debt	48.00K	48.00K	3.24M	0.00	707.00K	2.96M
Total Liabilities	42.84M	42.84M	61.80M	51.41M	105.25M	79.68M
Stockholders Equity	454.33M	454.33M	414.11M	405.36M	364.78M	347.46M
Cash Flow
Free Cash Flow	64.56M	64.56M	31.80M	95.01M	58.09M	14.47M
Operating Cash Flow	72.07M	72.07M	39.47M	103.34M	71.32M	20.28M
Investing Cash Flow	-7.34M	-7.34M	-7.01M	-7.99M	-13.05M	-5.79M
Financing Cash Flow	-940.00K	-940.00K	-25.29M	-19.89M	-49.75M	95.05M

Fourace Industries Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1455, the sentiment is Positive. The current price of 0.23 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.23, and above the 200-day MA of 0.20, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.76 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1455.

Fourace Industries Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1925	74 Outperform	HK$429.34M	4.39	17.17%	8.49%	21.99%	11.36%
1455	70 Outperform	HK$290.23M	12.34	5.51%	6.61%	-34.28%	-45.72%
2023	66 Neutral	HK$363.93M	6.40	10.92%	―	11.10%	-4.38%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1962	60 Neutral	HK$295.66M	9.85	3.77%	10.32%	-6.67%	-29.55%
8436	55 Neutral	HK$87.60M	19.04	1.89%	―	-20.10%	-74.16%
6893	49 Neutral	HK$327.54M	-8.17	-23.55%	―	10.42%	11.14%

Fourace Industries Group Holdings Limited Corporate Events

Fourace Industries Reports Significant Revenue Decline in Interim Results

Fourace Industries Group Holdings Limited reported a significant decline in its financial performance for the six months ending September 30, 2025, with revenue dropping by 49.7% to HK$77.9 million compared to the same period in 2024. The company’s gross profit and profit attributable to equity holders also saw substantial decreases, leading to a decision by the Board not to pay an interim dividend. This downturn reflects challenges in the company’s market environment and could have implications for its stakeholders.

Fourace Industries Issues Profit Warning Amid Declining Sales

Fourace Industries Group Holdings Limited has issued a profit warning, estimating a significant 79.5% decrease in profit for the six months ending September 2025 compared to the same period in 2024. This decline is attributed to reduced sales volume and average selling prices of hair styling products, particularly due to a major US customer’s conservative procurement strategy amid US trade tariff uncertainties and the introduction of a new hair-dryer model in Japan replacing the Group’s product.