Morris Home Holdings Limited (1575) AI Stock Analysis

• Market Cap: HK$148.31M
• Dividend Yield: N/A
• Average Volume (3M): 181.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: -50.43%
• EPS Growth: 79.67%
• Country: HK
• Employees: 220
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): N/A
• Shares Outstanding: 3,300,000,000
• 10 Day Avg. Volume: 144,200
• 30 Day Avg. Volume: 181,000
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.65
• Price to Sales (P/S): 1.28
• P/FCF Ratio: -3.87
• 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 ▲(22.50% Upside)

The overall stock score of 44 reflects significant financial instability as the most impactful factor, with persistent losses, high leverage, and poor cash flow management. Technical analysis and valuation also contribute to the low score, indicating bearish trends and unattractive valuation metrics.

Positive Factors

Strategic Partnerships

These partnerships can enhance supply chain efficiency and product offerings, supporting long-term competitive advantage and market positioning.

Market Reach

A broad customer reach through multiple sales channels can drive revenue growth and improve brand visibility over time.

Product Innovation

Focus on innovation and quality can attract diverse consumer preferences, enhancing brand loyalty and market share.

Negative Factors

Financial Instability

Ongoing financial difficulties can hinder operational capabilities and strategic investments, posing long-term risks to business sustainability.

Declining Revenue

A declining revenue trend suggests challenges in market demand or competitive positioning, impacting future growth prospects.

High Leverage

High leverage limits financial flexibility and increases vulnerability to economic downturns, affecting long-term financial health.

Morris Home Holdings Limited Business Overview & Revenue Model

Company Description

Morris Home Holdings Limited, an investment holding company, designs, manufactures, and sells sofas, sofa covers, and other furniture products in the People's Republic of China, the United States, France, Norway, Spain, Ireland, the United Kingdom, and internationally. It operates through Retail and Manufacturing segments. The company provides stationary sofas, upholstered sofas, and motion sofas, as well as sofas with smart home features, such as audio, massage, beverage cooling, Bluetooth, and USB port connections. It offers its products under the Morrisofa brand name through its flagship stores. The company was formerly known as Morris Holdings Limited and changed its name to Morris Home Holdings Limited in May 2021. Morris Home Holdings Limited was founded in 2002 and is headquartered in Haining, the People's Republic of China.

How the Company Makes Money

Morris Home Holdings Limited generates revenue primarily through the sale of home furnishings and related products. The company's revenue model is centered around direct sales through its retail outlets as well as online platforms, which allows for a broad customer reach. Key revenue streams include furniture sales, home decor items, and appliances, with a particular emphasis on high-margin products. Additionally, the company often engages in strategic partnerships with manufacturers and suppliers to ensure competitive pricing and product variety. Seasonal promotions, loyalty programs, and financing options also contribute to driving sales and enhancing customer retention, ultimately boosting the company's earnings.

Morris Home Holdings Limited Financial Statement Overview

Summary

Morris Home Holdings Limited is facing severe financial difficulties, characterized by declining revenues, persistent losses, high leverage, and poor cash flow management. These factors collectively indicate significant financial instability and potential risk to stakeholders.

Income Statement

The income statement reveals significant challenges, with consistent net losses over the years, and a negative revenue growth trend. The gross profit margin has drastically declined, and EBIT and EBITDA margins are negative, indicating operational inefficiencies and declining profitability.

Balance Sheet

The balance sheet is concerning, with negative stockholders' equity reflecting financial distress. There is also a high debt-to-equity ratio, signifying high leverage and potential liquidity risks. The equity ratio is negative, indicating that liabilities exceed assets.

Cash Flow

The cash flow statement shows erratic and negative free cash flow trends, with operating cash flow unable to cover net income losses. This suggests potential cash management issues and challenges in generating sustainable cash flow from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	86.33M	119.51M	187.97M	132.01M	502.93M	606.36M
Gross Profit	18.79M	27.85M	69.46M	2.00M	99.66M	58.77M
EBITDA	-115.54M	-119.48M	17.89M	-226.94M	-86.11M	-150.92M
Net Income	-24.23M	-87.66M	-24.73M	-199.68M	-121.51M	-91.19M
Balance Sheet
Total Assets	180.37M	197.35M	283.98M	366.90M	374.88M	676.85M
Cash, Cash Equivalents and Short-Term Investments	4.78M	4.00M	14.96M	59.90M	39.61M	35.97M
Total Debt	283.65M	311.00M	241.30M	177.25M	159.59M	217.98M
Total Liabilities	418.89M	432.07M	436.51M	498.36M	426.05M	600.11M
Stockholders Equity	-236.13M	-233.79M	-146.25M	-127.02M	-49.54M	76.57M
Cash Flow
Free Cash Flow	-19.09M	-39.58M	-19.51M	-154.14M	74.39M	-114.54M
Operating Cash Flow	-18.38M	-38.75M	-15.51M	-141.55M	76.91M	-46.50M
Investing Cash Flow	-285.00K	-347.00K	-15.26M	7.90M	-1.10M	185.99M
Financing Cash Flow	0.00	38.40M	19.02M	122.79M	-96.66M	-173.28M

Morris Home Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 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:1575, the sentiment is Positive. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.05, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 64.62 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:1575.

Morris Home Holdings Limited 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%
0396	53 Neutral	HK$99.40M	5.89	20.69%	8.93%	-13.44%	―
1575	44 Neutral	HK$148.31M	-5.41	―	―	-50.43%	79.67%
8392	43 Neutral	HK$52.00M	-130.00	-1.87%	―	19.09%	90.00%
8222	42 Neutral	HK$13.98M	-2.92	-49.85%	―	-7.75%	37.65%
8547	42 Neutral	HK$28.38M	80.00	―	―	-21.85%	-98.18%
2127	41 Neutral	HK$76.58M	-0.04	―	―	-72.73%	-764.81%