Morris Home Holdings Limited (1575) AI Stock Analysis

• Market Cap: HK$154.76M
• Dividend Yield: N/A
• Average Volume (3M): 181.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• 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: 39 Underperform
• Price Target: HK$0.04 ▲(5.00% Upside)

The score is primarily driven by very weak financial performance (losses, negative equity, and poor/unstable cash flow). Technical indicators add further pressure with the stock trading below major moving averages and weak momentum. Valuation provides limited support due to negative earnings and no dividend yield data.

Positive Factors

Diversified product portfolio

A broad mix across furniture, decor and appliances reduces revenue concentration and supports cross-selling. This structural diversification helps stabilize sales through product-cycle shifts and seasonal swings, sustaining core revenue streams over the medium term.

Multi-channel distribution

Operating both physical stores and online channels provides durable customer reach and flexibility. Omnichannel capabilities support steady demand capture, improve inventory turn and customer retention, and allow the firm to adapt to shifting consumer purchasing patterns over months.

Supplier partnerships and product focus

Long-term supplier relationships and emphasis on craftsmanship/innovation can secure cost advantages, faster assortment refreshes and differentiated product offerings. These structural advantages support margin resilience and brand positioning if consistently managed.

Negative Factors

Persistent net losses and falling margins

Ongoing net losses and deteriorating gross/EBITDA margins signal structural profitability problems. Over 2–6 months this impairs retained capital, limits reinvestment in product and channels, and raises the bar for any operational turnaround to restore sustainable earnings.

Negative equity and high leverage

Negative shareholders' equity and elevated leverage constrain financial flexibility and increase refinancing and covenant risks. This structural weakness limits capacity for capital expenditures or strategic investment and elevates the likelihood of distress in adverse conditions.

Erratic, negative free cash flow

Inconsistent and negative free cash flow undermines ability to service debt, fund inventory or invest in growth. Reliance on external financing to bridge operating shortfalls is likely, increasing cost of capital and constraining strategic options over the medium term.

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

Financial statements indicate severe weakness: persistent net losses and declining margins (income statement), negative equity and high leverage with liabilities exceeding assets (balance sheet), and erratic/negative free cash flow with operating cash flow not supporting losses (cash flow).

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: Positive
• RSI: Neutral
• STOCH: Positive

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 0.05, 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 Positive momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 17.95 is Positive, 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	52 Neutral	HK$91.31M	5.41	20.69%	8.93%	-13.44%	―
8392	43 Neutral	HK$47.00M	-117.50	-1.87%	―	19.09%	90.00%
8222	42 Neutral	HK$14.43M	-3.02	-49.85%	―	-7.75%	37.65%
8547	42 Neutral	HK$45.52M	128.33	―	―	-21.85%	-98.18%
2127	41 Neutral	HK$76.58M	-0.04	―	―	-72.73%	-764.81%
1575	39 Underperform	HK$154.76M	-5.65	―	―	-50.43%	79.67%