REF Holdings Limited (1631) AI Stock Analysis

• Market Cap: HK$110.08M
• Dividend Yield: N/A
• Average Volume (3M): 163.00K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.71
• Revenue Growth: -13.63%
• EPS Growth: -30.26%
• Country: HK
• Employees: 115
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.02
• Shares Outstanding: 256,000,000
• 10 Day Avg. Volume: 85,500
• 30 Day Avg. Volume: 163,000
• PEG Ratio: -0.19
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 3.36
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$0.50 ▲(16.28% Upside)

The overall stock score of 60 reflects the company's strong cash flow and balance sheet, offset by declining revenue and bearish technical indicators. The moderate valuation suggests limited upside potential without a dividend yield to attract income investors.

Positive Factors

Strong Cash Flow

Strong cash flow management indicates the company's ability to generate cash efficiently, supporting operations and potential investments, enhancing long-term financial stability.

Solid Balance Sheet

A solid balance sheet with low leverage provides financial flexibility and reduces risk, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Efficient Cost Management

Efficient cost management allows the company to maintain profitability despite revenue pressures, supporting long-term financial health and competitive positioning.

Negative Factors

Declining Revenue

Declining revenue trends can indicate challenges in market demand or competitive pressures, potentially impacting the company's ability to grow and maintain market share.

Reduced Profitability

Reduced profitability margins suggest pressure on the company's ability to convert sales into profits, which could affect its capacity to reinvest in business growth and innovation.

Decreased Return on Equity

A decrease in return on equity indicates reduced efficiency in generating profits from shareholders' equity, potentially impacting investor confidence and future capital raising capabilities.

REF Holdings Limited Business Overview & Revenue Model

Company Description

REF Holdings Limited (1631) is a diversified investment holding company based in Hong Kong, primarily engaged in the business of financial services, property investment, and trading of various commodities. The company aims to leverage opportunities across multiple sectors to enhance its portfolio, focusing on strategic investments and sustainable growth. Its core offerings include asset management, investment advisory, and real estate development, catering to both individual and institutional clients.

How the Company Makes Money

REF Holdings Limited generates revenue through several key streams. The primary source of income is derived from its financial services division, which includes management fees from funds it manages and advisory fees for investment consultations. Additionally, the company earns revenue from property investments through rental income and capital gains from the sale of real estate assets. Trading activities in commodities also contribute to its earnings, driven by market demand and price fluctuations. Significant partnerships with financial institutions and real estate developers enhance its market presence and provide access to lucrative investment opportunities, further supporting its revenue generation.

REF Holdings Limited Financial Statement Overview

Summary

REF Holdings Limited exhibits a mixed financial performance with declining revenue and profitability margins. However, it maintains a strong balance sheet with low leverage and solid cash flow generation, which supports its financial stability.

Income Statement

REF Holdings Limited has shown a declining revenue trend over the years, with a negative revenue growth rate of -4.87% in the TTM period. Despite this, the company maintains a stable gross profit margin of around 52%, indicating efficient cost management. However, the net profit margin has decreased to 5.02% in the TTM, reflecting reduced profitability. The EBIT and EBITDA margins have also declined, suggesting pressure on operating performance.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.34 in the TTM, indicating a conservative leverage position. The return on equity has decreased to 5.91%, which is lower than previous years, suggesting reduced efficiency in generating profits from shareholders' equity. The equity ratio remains strong, reflecting a solid capital structure.

Cash Flow

REF Holdings Limited has demonstrated strong cash flow management with a positive free cash flow growth rate of 9.02% in the TTM. The operating cash flow to net income ratio is healthy at 1.11, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also robust at 0.98, highlighting effective conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	96.48M	106.36M	124.04M	129.71M	135.08M	147.50M
Gross Profit	50.17M	56.07M	63.25M	66.23M	72.20M	69.46M
EBITDA	8.68M	28.91M	38.02M	38.04M	34.13M	43.77M
Net Income	4.84M	5.67M	11.71M	11.16M	8.63M	18.27M
Balance Sheet
Total Assets	126.83M	125.50M	104.22M	147.80M	210.37M	260.53M
Cash, Cash Equivalents and Short-Term Investments	52.97M	55.75M	55.09M	77.32M	128.99M	209.22M
Total Debt	28.70M	36.42M	8.54M	25.46M	41.64M	10.47M
Total Liabilities	42.57M	45.77M	31.47M	48.38M	70.91M	52.90M
Stockholders Equity	84.26M	79.73M	72.75M	99.42M	139.46M	207.63M
Cash Flow
Free Cash Flow	31.01M	16.69M	36.03M	20.91M	15.59M	26.40M
Operating Cash Flow	31.53M	16.96M	36.17M	21.53M	29.10M	26.43M
Investing Cash Flow	45.06M	19.38M	42.50M	-58.78M	5.50M	217.66M
Financing Cash Flow	-28.52M	-17.27M	-59.82M	-72.96M	-93.52M	-71.61M

REF Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.43
• 50DMA: Positive
• 100DMA: Negative
• 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:1631, the sentiment is Positive. The current price of 0.43 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.39, and below the 200-day MA of 0.43, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 65.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1631.

REF Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1975	63 Neutral	HK$187.20M	-2.11	-20.83%	8.16%	-26.30%	-617.37%
1631	60 Neutral	HK$110.08M	22.75	5.97%	―	-13.63%	-30.26%
1841	53 Neutral	HK$90.80M	-21.83	-3.56%	―	-14.40%	-180.62%
8419	53 Neutral	HK$25.20M	13.70	3.05%	―	-6.40%	―
8450	46 Neutral	HK$95.00M	-8.33	-23.68%	―	-30.12%	-208.11%
1884	45 Neutral	HK$63.80M	77.33	0.37%	―	-10.78%	―

REF Holdings Limited Corporate Events

REF Holdings Limited Issues Supplemental Announcement to 2024 Annual Report

REF Holdings Limited has issued a supplemental announcement to its annual report for the year ended 31 December 2024. The company provided additional information regarding its share option scheme, specifically noting the closing price of shares before the grant date and the total number of share options available. This update does not alter other information in the annual report, ensuring stakeholders have a complete understanding of the company’s financial statements.